Politics · Philippines Bureau
House panel backs bills to scrap system loss charges, open power generation
The House Committee on Energy has approved substitute bills aimed at removing system loss charges from consumer electricity bills and allowing power generation to be liberalized down to the household level. The move follows President Ferdinand Marcos' identification of system losses as a key concern in his recent State of the Nation Address.
LSN Philippines ·
MANILA — Lawmakers have taken a significant step toward reforming the country's power sector after the House Committee on Energy gave its approval Monday to substitute bills addressing long-standing consumer complaints about electricity costs.
The approved measures seek to eliminate system loss charges that currently appear on monthly electric bills, a practice that has drawn criticism from consumer advocates and policymakers alike. Additionally, the bills propose opening up power generation to smaller players, potentially allowing consumers themselves to participate in generating electricity.
The initiatives address concerns raised at the highest levels of government, with President Marcos highlighting the issue of system losses during his most recent State of the Nation Address. System losses—which include technical losses from power transmission and distribution as well as non-technical losses from theft and meter inaccuracies—have long been a source of contention in rate calculations.
The approved substitute bills now include corresponding committee reports and move forward in the legislative process. Industry observers expect the measures could reshape the competitive landscape of the Philippine energy market if enacted into law, potentially offering consumers greater choice and potentially lower electricity costs.