MANILA, Philippines – Manila Electric Company (Meralco) on Tuesday said some level of system loss is unavoidable in electricity distribution as lawmakers consider President Ferdinand Marcos Jr.'s proposal to amend the Electric Power Industry Reform Act (EPIRA).
The proposed amendments would prohibit distribution utilities from passing system loss charges and the corresponding value-added tax on to consumers.
Meralco Executive Vice President and Chief Operating Officer Ronnie Aperocho said technical losses are an inherent part of operating an electric distribution system. He said the company continues to invest in network modernization, upgraded facilities, and technologies that reduce system losses.
System loss is the difference between the electricity entering a distribution network and the amount eventually billed to consumers. It includes technical losses that occur during power transmission and nontechnical losses caused by electricity theft, illegal connections, and metering problems.
Meralco said system loss charges account for about five percent of an average electricity bill. It also stressed that system loss is a normal operational aspect of delivering electricity across the power industry.
The utility posted a system loss rate of 5.72 percent as of the end of the first quarter of 2026. The figure is well below the 6.5 percent cap set by the Energy Regulatory Commission (ERC).
Aperocho said Meralco supports reforms that benefit consumers. However, he said lawmakers should also consider the operational and financial sustainability of distribution utilities and electric cooperatives.
He added that power distributors must continue investing in infrastructure and system resilience. He said those investments are essential to delivering safe, stable, and reliable electricity service.
The Energy Regulatory Commission (ERC) backed President Marcos' proposal and pledged to work with Congress, the Department of Energy, and industry stakeholders on the legal and regulatory measures needed to implement the reform.
Several lawmakers also expressed support for the proposal. Senator Francis Pangilinan, Navotas Representative Toby Tiangco, and Bukidnon Representative Jonathan Keith Flores all endorsed amending EPIRA to reduce electricity costs for consumers.
— The Summit Express
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