ENERGY consumption is measured by electric meters such these seen in Sta. Mesa, Manila. Energy officials estimate the complete removal of system loss charges may take up to a year, targeting full execution by 2027. The policy requires legal amendments to the EPIRA law, extensive infrastructure planning and regulatory adjustments by the Energy Regulatory Commission before implementation.
PHOTOGRAPH BY Zedrich Xylak madrid FOR DAILY TRIBUNE
Among electric cooperatives with the highest system losses in 2025 were the combined operations of Albay Electric Cooperative Inc. (ALECO) and Albay Power and Energy Corp. (APEC), which posted a 21.5-percent system loss, according to Energy Regulatory Commission (ERC) data.
Zamboanga City Electric Cooperative Inc. (ZAMCELCO) recorded an 18.1-percent loss. Both figures were more than twice their allowable caps.
President Ferdinand Marcos Jr., in his 27 July 2026 State of the Nation Address, called for amendments to the Electric Power Industry Reform Act to prohibit distribution utilities from passing system loss charges, including value-added tax, to consumers.
He stressed that consumers should not pay for electricity they did not use.
Several electric cooperatives have been posting losses far above the regulatory ceiling, suggesting serious distribution inefficiencies. But cooperatives also fear that removing the system loss charge could deepen their financial problems.
A distribution utility or electric cooperative may recover the cost of electricity lost within its distribution system up to the ERC-approved cap. The charge appears as the system loss component of consumers’ monthly bills.
Under ERC rules, the caps are 12 percent for Cluster 1, 10.25 percent for Cluster 2 and 8.25 percent for Cluster 3.
Aside from the Albay cooperatives, the highest losses were recorded by ZAMCELCO at 18.1 percent; Zamboanga del Sur II Electric Cooperative Inc., 16.2 percent; Siasi Electric Cooperative Inc., 13.8 percent; and Camiguin Electric Cooperative Inc., 13.1 percent.
Based on ERC data and computed costs absorbed, ZAMCELCO posted the biggest loss at P543 million, followed by South Cotabato II Electric Cooperative Inc. at P410 million, ALECO/APEC at P374 million and Negros Electric and Power Corp. at P148 million.
According to the ERC, a high system loss rate does not automatically mean unreliable electricity service. It measures electricity lost between the distribution system and the energy billed to customers.
System loss includes technical losses from wires, transformers and other equipment, and nontechnical losses such as metering inaccuracies and electricity pilferage.
