This, as the government pushes to lower the price of electricity in the country.
In his fifth State of the Nation Address, President Ferdinand Marcos, Jr. said that the administration is vouching for a number for measures to temper electricity charges in the country, with the average power price reaching PHP12.43 per kilowatt-hour in June according to the Department of Energy.
That even surpassed Singapore’s average rate by P0.09 per kWh.
“Mga kababayan, sa lahat ng mga ginagawa natin sa sektor ng enerhiya, malinaw din sa pamahalaan ang hinaing ng taumbayan na pababain ang presyo ng kuryente sa bansa,” the President said.
Thus, he said that one of the measures they see that would help in delivering the cause would be the removal of systems loss charges to electricity consumers.
Systems loss point to the electricity lost due to both technical and non-technical factors, which might include the energy converted into heat or consumed by wires, transformers, and other equipment that are needed to transport the electricity, as well as the illegal jumper cable wire connections that tap into system.
“At kung pagbawas ng presyo ang usapan, sa aking palagay panahon na para tanggalin na natin ang system loss na pinapasa sa consumer,” the Chief Executive noted.
“Pinapasa ito sa consumer at kinakarga sa bill na pinapatungan pa ng value-added tax. Hindi naman kasalanan ng consumer kung bakit nagkaroon ng system loss. Kaya hindi naman tama na kailangan sila pa ang pagbabayarin dito.“
The President furthered that a an amendment to the EPIRA (Electric Power Industry Reform Act of 2001) be made to prohibit tge charging of systems loss to consumers and the value-added tax thereon.
In response to that, the Energy Regulatory Commission (ERC) said in a statement on Tuesday, July 28, that it backs the said proposal of the President.
“The Energy Regulatory Commission (ERC) welcomes the President’s call and affirms its support for policy reforms that place the welfare of electricity consumers at the forefront,” they said.
“The Commission likewise recognizes the importance of pursuing measures that help reduce unnecessary costs while ensuring the viability of all distribution utilities and promoting a more efficient, affordable, and reliable power sector.“
The commission also, as the country’s independent electric power industry regulator, expressed its readiness to work with Congress, the Department of Energy (DOE), industry stakeholders, and other concerned government agencies for the legal and regulatory measures necessary for this reform.
“The ERC remains committed to fulfilling its regulatory mandate to protect consumer welfare through transparent, fair, and accountable regulation,” it also said, adding that it will continue to promote efficiency and “support meaningful reforms that would contribute to lower electricity rates without compromising the quality, reliability, and sustainability of electric service for all Filipinos.”
In the same speech, Marcos also mentioned that the government has ordered the immediate refunding of companies that overcharged their customers and allowed select consumers to pay their bills in tranches for the months of May, June, and July.
The President also pushed for the “Sariling Kuryente” Act to allow the simple, easy, and affordable installation of solar panels and battery storage system by the public in their own homes.
