LINAMON, Lanao del Norte (MindaNews/28 July 2026)—The proposal to remove systems loss charges from the monthly electricity bill has consumers here heaving a sigh of relief.
“If system loss charges will be removed from our monthly electric bill, this will be a relief to the economic burden of every consumer,” Ronnie Bomendiano, a former Overseas Filipino Worker(OFW) in Saudi Arabia and a consumer of Lanao del Norte Electric Cooperative Inc., told MindaNews in an interview just after President Ferdinand R. Marcos Jr. finished delivering his 5th State of the Nation address (SONA) Monday, 27 July.
Bomendiano, who runs a sari-sari store in front of his house, said their monthly electric bill comes to about P3, 500 per month.
“Kung madayon og makuhaan bisan og P500 matag bulan,maayong na kaayo nga savings (If this will push through, it means a lot of monthly savings for us consumers),” he said.
For lawyer and Iligan City Councilor Marlene Young, chairperson of the Iligan City Council’s Committee on Energy, the proposal, should it materialize, would be like a breath of fresh air.
“Let’s wait and see if it will materialize,” she said.
President Marcos had urged Congress to amend the Electric Power Industry Reform Act (EPIRA) so that distribution utilities can no longer pass system loss costs—including technical losses and power pilferage—onto ordinary households and businesses.
Marcos told legislators consumers should not shoulder extra financial burdens caused by system inefficiencies or illegal connections that are outside of their control.
Marcos said the proposal includes removing the 12% VAT currently levied on top of these system loss charges and said these would provide consumers immediate financial relief amid high electricity costs.
The proposal is a welcome development for Kauswagan, Lanao del Norte Vice Mayor Rommel Arnado of Kauswagan. But Arnado said transmission charges from the National Grid Corporation of the Philippines (NGCP) and other charges, like standby costs from other supplementary power barges, also need to be slashed.
‘Stand-by’ costs fall under what the NGCP calls ancillary services – or pass-through charges. These services are intended for grid stability, frequency control, and reserves while the transmission wheeling rate refer to the cost of delivering power through the grid. All of these are strictly regulated and operate under a revenue cap set by the Energy Regulatory Commission (ERC).
Iligan City Mayor Frederick W. Siao, meanwhile, said electricity is not a luxury but is an essential service that every Filipino family and every business depends on.
“Consumers should have confidence that every peso they pay is fair, transparent, and justified. If there are costs arising from inefficiencies or technical losses within the power system, Congress should carefully review whether these should continue to be passed on to consumers and whether the corresponding taxes remain equitable,” Siao said.
“Ultimately, every Filipino deserves an energy system that is reliable, transparent, affordable, and fair,” Siao added. (Richel V. Umel/MindaNews)
0 Comments