CERA urges unified 5.5 percent system loss cap
A consumer advocacy group is calling for a uniform 5.5-percent system loss cap for all power distributors in the Philippines. They argue that the current dual-standard policy unfairly burdens consumers served by electric cooperatives with higher electricity rates.
Why it matters
The disparity in regulatory caps directly affects the cost of living for consumers, highlighting issues of equity in utility regulation.
CEBU, Philippines - A consumer group is now urging the Energy Regulatory Commission (ERC) and the national government to adopt a uniform 5.5-percent system loss cap for all power distributors, stating that the current policy leads to higher rates among consumers served by electric cooperatives.
In a statement, the group, Cebu Electricity Rights Advocates (CERA), advocates for this unified measure, adding that the existing system hampers efforts to modernize power distribution systems.
They explained that the current dual-standard policy allows private distribution utilities (DUs), such as Visayan Electric (VECO) and Mactan Electric Company (MECO), to recover up to 5.5 percent of system losses from consumers, while electric cooperatives, including CEBECO I, II, and III, may recover up to 12.5 percent.
System loss refers to electricity lost during distribution due to technical factors, such as heat dissipated through power lines, as well as non-technical causes, including electricity pilferage and illegal connections.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in