By Hannah Torregoza
Lawmakers are pushing for the approval of a measure that will abolish the system loss charge from electricity bills, shifting the burden away from consumers and onto distribution utilities.
Senate President Sherwin Gatchalian expressed confidence on Sunday, August 2, that the proposed System Loss Charge Abolition Act would be passed before Christmas or by year‑end.
He noted that eight senators have already filed similar bills, reflecting a strong consensus in both chambers of Congress and support from President Ferdinand Marcos Jr.
“The legislation is moving forward because there is already a meeting of the minds among the President, the House of Representatives, and the Senate. With nearly a majority of lawmakers filing these bills, I believe this can be finalized within three to six months,” Gatchalian said in a radio interview.
The senator explained that the bill strictly prohibits distribution utilities from disguising system loss costs under other line items, requiring them instead to absorb the losses and reflect them in their income statements.
He stressed that the Energy Regulatory Commission (ERC) must issue clear regulations to prevent utilities from passing the charges back to consumers indirectly.
Sen. Erwin Tulfo, chair of the Senate Committee on Energy, vowed to complete hearings before year‑end to overhaul policies that currently allow companies to pass system losses onto the public.
Tulfo criticized power firms for profiting while consumers struggle, saying: “It’s unfair. Why should consumers bear the brunt of these system losses? The electric companies are the ones responsible for their own losses.”
Tulfo added that removing the charge would provide immediate relief to households: “It may only be a few hundred pesos, but for poor Filipinos, that could already buy rice or fuel. It’s a big help.”
President Marcos earlier directed Congress during his State of the Nation Address to prioritize consumer relief and lower electricity costs.
