Power industry 'may not survive' if asked to absorb system loss
Meralco chairman Manny V. Pangilinan has warned that the Philippine power industry faces financial instability if a government order to remove system loss charges is fully implemented. He suggests that these costs are unavoidable and that the directive requires further negotiation.
Why it matters
The dispute highlights the tension between government efforts to lower consumer costs and the operational realities of private utility companies in the energy sector.
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Meralco chairman Manny V. Pangilinan warned that the Philippine power industry may not survive if President Marcos' order to remove system loss charges from electricity bills is fully implemented. Pangilinan emphasized that system losses, which include both technical and nontechnical losses, are significant and cannot simply be eliminated, raising concerns about who will absorb these costs. Despite the warning, Meralco's financial performance remains strong, with significant revenue growth, suggesting that the warning may be more of a negotiation tactic than an indication of immediate financial distress. This is AI-generated.
MANILA, Philippines – Manila Electric Company (Meralco) chairman Manny V. Pangilinan warned that the Philippine power industry “may not survive” if President Ferdinand Marcos Jr.’s order to remove system loss charges from consumers’ electricity bills is carried out in full.
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