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The Manila Times·3 min read·medium

Escudero files bill to ban system loss charges, making electricity more affordable

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Catherine S. Valente
Escudero files bill to ban system loss charges, making electricity more affordable
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Senator Francis Escudero has introduced a bill to amend the Electric Power Industry Reform Act, aiming to prohibit distribution utilities from passing system loss costs to consumers. The proposal seeks to hold utilities accountable for technical inefficiencies and electricity theft rather than charging end-users.

Why it matters

This legislation directly impacts household electricity affordability and aims to incentivize infrastructure improvements by utility companies.

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Sen. Francis "Chiz" Escudero has filed a bill prohibiting the recovery of system loss charges from electricity consumers by amending existing laws and make electricity more affordable for Filipino households.Senate Bill 2345 amends Republic Act 9136, or the Electric Power Industry Reform Act of 2001 (Epira), which currently allows distribution utilities to recover a portion of system losses incurred in the delivery of electricity.Escudero said the continued imposition of these charges "has become increasingly difficult to justify," noting that consumers "neither control nor contribute to the technical condition of the grid, nor are responsible for losses arising from inefficient operations, outdated infrastructure or electricity theft."Under the proposed amendment, distribution utilities will no longer be allowed to pass on costs arising from technical inefficiencies or electricity pilferage to end‑users."Consumers should pay only for the electricity they actually consume," Escudero said in his explanatory note, adding that the bill "promotes fairness in…

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