Senate Committee on Energy Chairman Erwin Tulfo guaranteed on Sunday that power firms will be strictly prohibited from disguising systems loss costs under different billing categories once the proposed reform takes effect.
The guarantee directly tackles growing public concern that power distributors might attempt to offset the removal of systems loss fees by inflating other line items, including distribution, supply, or metering rates.
“We have anticipated this loophole, and it is unacceptable. We cannot remove systems loss from one line of the electricity bill only to see the same cost transferred somewhere else,” Tulfo said.
“This is why the bill we are shepherding now explicitly prohibits distribution utilities and electric cooperative from recovering allowed losses through distribution wheeling charges, supply charges, metering charges, universal charges, subsidies, or any other item in the bill,” he continued.
The safeguards are embedded within Senate Bill No. 2486, titled the “Systems Loss Charge Removal Act,” a priority legislation backed by the administration that Tulfo formally sponsored on the Senate floor on September 22.
The Senate panel head questioned the prevailing setup that forces everyday power consumers to bear the financial burden of electrical waste caused by power theft, technical line losses and dilapidated grid systems.
“Why do consumers pay for electricity that they did not consume? Why do consumers bear the brunt of inefficiencies and deteriorating facilities resulting in system losses?” Sen. Tulfo queried.
Advocating for immediate legislative action, Tulfo called for the fast-tracked approval of the bill to shield families from unjust monthly utility charges.
“Electricity is not a luxury. It is a basic necessity the modern society needs to operate with dignity,” the Senator explained..
“Let’s give Filipino consumers what they deserve: A reliable electricity and fair billing,” Tulfo said..