The Energy Regulatory Commission (ERC) has expressed support for proposed legislative reforms aimed at reducing recoverable system loss charges and strengthening consumer safeguards while maintaining the operational viability of power distribution utilities.
During the second public hearing of the Senate Committee on Energy, ERC Chairperson and CEO Atty. Francis Saturnino C. Juan presented the commission’s position on proposed amendments to the Electric Power Industry Reform Act (EPIRA) of 2001.
Juan addressed key questions regarding how technical and non-technical system losses are currently recovered from electricity consumers and evaluated the potential financial impacts of policy shifts on distribution utilities. He emphasized the importance of establishing structured transition measures, grid infrastructure upgrades, and stricter performance standards to progressively reduce system losses over time.
The ERC chief likewise discussed proposals to remove the Value-Added Tax (VAT) on system loss charges and other measures designed to ensure that consumers are treated fairly without undermining the financial and operational stability of distribution utilities.
Reaffirming its regulatory mandate, the ERC stated that its participation in the Senate hearing forms part of its commitment to transparent, evidence-based, and responsive regulation. The commission added that it will continue working with Congress and industry stakeholders on reforms aimed at protecting electricity consumers while improving the overall reliability of the country’s power distribution system.