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Consumers Welcome PBBM’s Proposal to Slash Systems Loss Charges From Electricity Bill

Marcos said consumers should not pay for electricity lost in distribution, while Philreca warned removing recovery rules could strain rural cooperatives.

  • During his 5th State of the Nation Address on Monday, President Ferdinand Marcos Jr. proposed removing system-loss charges and the 12% VAT from electricity bills, aiming to provide immediate relief to consumers amid high electricity costs.
  • The current system, authorized under the 2001 Electric Power Industry Reform Act, allows distribution utilities to recover technical losses and power pilferage from customers, a practice President Marcos labeled unfair to households and businesses.
  • While Gerry Arances of the Power for People Coalition called the proposal "a good step," he noted that high fuel costs remain the biggest extra charge and demanded a broader energy policy overhaul.
  • Meralco COO Ronnie Aperocho stated yesterday that the company welcomes discussion, noting reforms must ensure distribution utilities remain capable of investing in critical infrastructure to maintain reliable electricity service.
  • Energy Regulatory Commission chairman Francis Saturnino Juan emphasized that Congress must first amend the EPIRA law, while Energy Secretary Sharon Garin noted the removal process could take about a year.
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The Manila Electric Company (Meralco) has urged a thorough discussion on President Ferdinand “Bongbong” Marcos Jr.’s proposal to eliminate the system loss charge from consumers’ electric bills, while calling for consideration of its possible impact on the operations and financial stability of power distribution utilities.

·Quezon City, Philippines (the)
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  • 63% of the sources lean Left
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Inquirer broke the news in Makati, Philippines (the) on Tuesday, July 28, 2026.
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