MANILA — Top officials from the Department of Energy (DOE), the Energy Regulatory Commission (ERC), and the Manila Electric Company (Meralco) have convened to formulate comprehensive policy reforms aimed at significantly lowering electricity costs for Filipino consumers.

The high-level discussions were sparked by President Ferdinand R. Marcos Jr.’s State of the Nation Address (SONA), in which he called on Congress to amend Republic Act 9136, also known as the Electric Power Industry Reform Act (EPIRA). A key directive from the President is the complete removal of system loss charges from end-users' monthly power bills.

System loss refers to electricity lost during transmission and distribution due to technical inefficiencies, as well as non-technical factors such as illegal connections and theft. Under current regulations, distribution utilities and electric cooperatives are permitted to pass these system losses—pegged at around 5 percent—onto consumers. President Marcos stressed that consumers should not be penalized for power lost through factors beyond their control.

During the meeting, Meralco expressed its commitment to exploring operational adjustments aimed at reducing electricity rates in the coming months. To drive these reforms forward, the DOE has formed a joint task force with the ERC, the National Electrification Administration (NEA), and electric cooperatives.

This joint body will collaborate with private distribution utilities nationwide to develop regulatory and legislative measures aimed at removing system loss fees and their corresponding value-added tax (VAT). Energy Secretary Sharon Garin underscored that consumer protection and energy security must go hand in hand, ensuring that every peso saved benefits Filipino households without compromising grid reliability.

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