Philippines moves to scrap electricity system loss charge
President Ferdinand Marcos Jr. has called for the removal of the system loss charge that appears on every Meralco electricity bill, a charge that typically represents 5%‑6% of a consumer’s monthly payment. The Energy Regulatory Commission backs the proposal and Senate President Win Gatchalian has filed legislation to abolish the charge, estimating the industry‑wide cost at about PHP 45 billion. Meralco chairman Manny Pangilinan warned that absorbing the loss would cost “tens of billions of pesos” and could threaten the utility’s viability.
Consumer groups caution that eliminating the charge alone may shift costs elsewhere. The Davao Consumer Movement notes that private distributors can recover up to 5% of system loss, while electric cooperatives may recover up to 12.5%, leading to higher charges for some customers. Senator Erwin Tulfo has filed Senate Resolution No. 537 and Bills No. 2239 and 2340 to amend the 2001 Electric Power Industry Reform Act and exempt system loss from VAT. The Mindanao Development Authority welcomed the amendment push, citing potential benefits for the region.
Entities: Davao Consumer Movement · Davao Light and Power Company · Ferdinand R. Marcos Jr. · Meralco chairman Manny Pangilinan · Mindanao Development Authority · Northern Davao Electric Cooperative · President Ferdinand Marcos Jr. · Senate President Win Gatchalian · Senator Erwin Tulfo
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [○ 1 SOURCE] The Mindanao Development Authority welcomed the push to amend the EPIRA law, citing benefits for Mindanao. (MinDA welcomes EPIRA Law amendment push article)
- [○ 1 SOURCE] Senator Erwin Tulfo filed Senate Resolution No. 537 and Senate Bills No. 2239 and 2340 to amend the EPIRA and exempt system loss charges from VAT. (Cooperate On System Loss Charge Removal article)
- [○ 1 SOURCE] The system loss charge accounts for about 5%‑6% of a typical Philippine residential electricity bill. (Meralco system loss charge explained article)
- [○ 1 SOURCE] President Ferdinand Marcos Jr. called for the removal of the system loss charge in his 2026 State of the Nation Address. (Meralco system loss charge explained article)
- [○ 1 SOURCE] Senate President Win Gatchalian filed a bill to abolish the system loss charge. (Meralco system loss charge explained article)
- [○ 1 SOURCE] Private distribution utilities in the Philippines may recover up to 5% of system loss, while electric cooperatives may recover up to 12.5%. (DCM warns removing system loss charge alone may not lower electricity bills article)
- [○ 1 SOURCE] Meralco chairman Manny Pangilinan warned that removing the charge would cost the company tens of billions of pesos. (Meralco system loss charge explained article)