[REVISION HISTORY]

Philippines electricity system loss charge reform

Updated 2 times since CLSTR started tracking revisions of this situation.

What changed

2026-08-02 09:52 UTC → 2026-08-25 04:17 UTC · added ~~removed~~

President Ferdinand Marcos Jr. first pledged to eliminate the system‑loss charge that appears on Meralco electricity bills, prompting applause and an ERC warning that a change to the 2001 Electric Power Industry Reform Act (EPIRA) would be required. The announcement caused a dip in Meralco’s share price. Two days later Marcos urged Congress to amend EPIRA to bar the charge and its value‑added tax from being passed to consumers. Consumer groups and the Davao Consumer Movement welcomed the move but warned that without broader regulatory reforms the cost could be shifted elsewhere. The Mindanao Development Authority supported the amendment, citing potential regional economic benefits and disparities in loss‑recovery rates between private distributors and electric cooperatives. In late July 2026 Marcos renewed the call to scrap the charge, this time with explicit backing from the Energy Regulatory Commission. Senate President Win Gatchalian filed legislation to abolish the charge, estimating industry‑wide costs at about PHP 45 billion. Meralco chairman Manny Pangilinan warned that absorbing the loss could threaten the utility’s viability. Senator Erwin Tulfo introduced a resolution and bills to amend EPIRA and exempt the charge from VAT. Consumer groups reiterated concerns that eliminating the charge alone may shift costs elsewhere, while the Mindanao Development Authority again welcomed the push, highlighting possible benefits for the region. During a Senate Committee on Energy hearing in August 2026, ERC Chairperson Francis Juan noted that while zeroing out recovery is possible, a phased approach might be necessary to prevent financially vulnerable utilities from facing bankruptcy. The discussion distinguished between technical losses during transmission and non-technical losses such as meter tampering. Additionally, the ERC cleared Negros Power of a reported breach, clarifying that its 7.5 percent feeder loss was within its specific interim cap of 8.50 percent.

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