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BusinessWorld

Another system loss bill filed

A PARTY-LIST lawmaker has filed another bill that seeks to remove system loss charges from electricity bills and require distribution utilities to absorb the costs. House Bill No. 10585, filed by Party-list Rep. Jose Manuel Tadeo “Chel” I. Diokno and three other lawmakers, seeks to amend the Electric Power Industry Reform Act and boost accountability […]

Context & Analysis

The repeated introduction of anti-system-loss bills reflects a persistent frustration in the Philippine power sector: consumers and businesses see charges on their electricity bills that they view as penalties for inefficiencies or unaccounted energy outside their control. System losses are not simply technical leakage. They include metering gaps, unauthorized connections, billing inaccuracies, and other non-technical factors that make it hard to trace where electricity is going before it reaches the end user. For a factory, commercial tenant, or household already coping with high power costs, such line items can feel like an unfair add-on even if the underlying cause is complex.

The policy debate is less about removing a label from a bill and more about who should bear the cost of improving metering, curbing theft, and tightening distribution operations. If utilities are forced to absorb losses without clear funding or performance standards, they may seek recovery through future rate cases, reduce maintenance spending, or delay investments in smart meters and grid upgrades. Conversely, if consumer bills continue to include system-loss charges without stronger accountability, public trust in the tariff process erodes. The Energy Regulatory Commission will likely scrutinize any law that changes cost allocation, because electricity rates are regulated and must remain just and reasonable for both consumers and utilities.

For Philippine businesses, the issue matters because power is a major input cost and a recurring factor in competitiveness. Industrial users, data centers, logistics firms, and manufacturing clusters all depend on predictable energy pricing. A law that merely shifts costs from one line item to another may offer limited relief unless it comes with enforceable targets for loss reduction, transparent reporting, and penalties for abuse. What to watch is whether the measure survives committee review, attracts a Senate companion, and includes implementation rules tied to metering accuracy, theft detection, and utility performance rather than blanket cost absorption.

Analysis by IJE Software — original commentary on the story above.

This is an excerpt. Read the full article at the original source:

Source: bworldonline.com

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