DUs should bear technical system loss costs, Gatchalian argues

MANILA — Senate President Sherwin "Win" Gatchalian argued Thursday that distribution utilities (DUs), not ordinary consumers, should be responsible for covering technical system losses in the power sector. Gatchalian made the statement during a Senate energy committee hearing as lawmakers examine cost allocation policies affecting electricity rates. The Senate President emphasized that only distribution utilities possess the capacity and resources to meaningfully reduce technical losses through strategic investments. "Only DUs can reduce technical system loss by procuring new equipment and upgrading substations and lines," Gatchalian said. His position reflects ongoing debate over whether these infrastructure-related costs should be treated as part of the utilities' operational expenses or passed along to end-users through rate adjustments. The remarks come amid broader scrutiny of electricity pricing mechanisms and consumer protection in the Philippines' power distribution sector. The technical losses—primarily caused by aging infrastructure, equipment inefficiencies, and network degradation—have become an increasingly contentious policy issue as consumers face mounting power bills.