Senate Energy Committee chairperson Erwin Tulfo pressed power distributors, cooperatives, and energy companies Wednesday on their strategies to reduce system loss, framing the issue as an industry-wide challenge requiring systemic reform.

During a committee hearing, representatives across the energy sector presented technological upgrades, grid investments, and advanced metering initiatives aimed at curbing line losses.

Electric distributor Meralco reported a 2025 technical system loss of 3.39 percent following a franchise-wide conversion to amorphous-core distribution transformers.

Representatives from Visayan Electric and Davao Light both reported system losses remaining below caps set by the Energy Regulatory Commission (ERC), citing ongoing line upgrades and expanded substation capacities.

Smart metering technology emerged as a primary industry defense against power theft and infrastructure damage.

The Philippine Rural Electric Cooperatives Association said it is encouraging member co-ops to adopt advanced metering infrastructure to detect illegal connections and automated unbilled usage.

Similarly, the Association of Visayas Electric Cooperatives reported using artificial intelligence to monitor irregular consumption, noting that nearly all member co-ops operate with single-digit system loss.

Meralco highlighted its February supply agreement with Aclara Meters Philippines to deploy more than 72,000 smart meters this year, advancing a long-term goal of 12 million connected endpoints.

Industry group Private Electric Power Operators Association commended current ERC leadership for clearing backlogged capital expenditure approvals, noting that regulatory delays had previously stalled critical loss-reduction projects.

The ERC cautioned lawmakers against abruptly barring utilities from recovering system loss costs without accompanying tariff adjustments or incentive structures, warning that forcing electric cooperatives to absorb all losses could risk their financial viability.

Tulfo identified the removal of value-added tax on system loss charges as a top priority for the committee, intending to submit recommendations to Malacañang.

Also, Senate leadership cited that eliminating the tax could be achieved through an ERC resolution without requiring new legislation.