House panel approves system loss, power generation bills

MANILA, Philippines — The House Committee on Energy approved on Monday substitute bills, along with their corresponding committee reports, which will remove the system loss charge from electric bills and liberalize power generation down to the consumer level.

Since President Ferdinand Marcos identified the system loss issue in his last State of the Nation Address (SONA), 43 bills and two resolutions have been filed in the House of Representatives proposing to end the practice of passing on to consumers the costs of inefficiencies arising from non-technical energy losses.

One of the bills on the subject was House Bill No. 10430, authored by Speaker Faustino “Bojie” Dy III and Majority Leader and Ilocos Norte 1st District Rep. Ferdinand Alexander “Sandro” Marcos.

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READ: BIR removes VAT on system loss charge

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According to the two House leaders, the bill, when enacted into law, would “provide meaningful relief to Filipino consumers by eliminating a charge that should properly be borne by the entities responsible for managing and operating the (electricity) distribution network.”

Cagayan de Oro 1st District Rep. Lordan Suan, who filed HB 10299, described the system loss charge as an unfair burden to a captive market as unfair.

“It is unjust to pay for electricity you do not consume,” he said, adding that the practice runs contrary to the principles of business efficiency and accountability.

The Committee on Energy, chaired by Palawan Rep. Jose Alvarez, also approved a substitute bill promoting the use of power generation and storage systems in households to take advantage of advances in solar and energy storage technologies.

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The bill, or the proposed Sariling Kuryente Act, seeks to reduce household electricity expenses, lessen dependence on the electric grid, and improve the country’s overall power supply.

READ: TUCP: Remove system loss charge, not just VAT, in bills

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The measure seeks to simplify regulatory requirements for the safe installation and operation of power generation and storage systems for noncommercial purposes to promote wider use of existing and emerging energy technologies.

Proponents of the measure said “unnecessary procedures and restrictions” hinder nationwide adoption, discouraging “investments that could otherwise benefit households, enterprises and the country as a whole.”

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Both bills, when enacted, would amend Republic Act No. 9136, otherwise known as the Electric Power Industry Reform Act (EPIRA) of 2001. /atm