CERA backs uniform system loss cap instead of scrapping charge
A consumer advocacy group in Cebu is calling for a uniform system loss cap for power distributors to address high electricity costs. They argue that current regulations unfairly favor private utilities over electric cooperatives, placing a heavier financial burden on consumers in cooperative areas.
Why it matters
This highlights regional infrastructure and regulatory disparities that directly impact the cost of living for local residents.
MANDAUE CITY, Cebu – A local consumer group is urging the Energy Regulatory Commission (ERC) and the national government to review the system loss cap imposed on power distributors, proposing a uniform 5.5-percent cap for both private distribution utilities (DUs) and electric cooperatives (ECs).
In a statement, the Cebu Electricity Rights Advocates (CERA) said existing ERC regulations allow private DUs such as Visayan Electric (VECO) and Mactan Electric Company (MECO) to recover only up to 5.5 percent of system loss from consumers.
However, CERA noted a significant disparity, as electric cooperatives such as CEBECO I, II, and III are allowed to recover up to 12.5 percent of their system loss.
READ: DOE says scrapping system loss fee may take one year
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