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Philippines electricity system loss charge reform

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2026-08-02 00:52 UTC → 2026-08-02 09:52 UTC · added removed

President Ferdinand Marcos Jr. first announced a pledge pledged to remove eliminate the system‑loss charges from Filipino charge that appears on Meralco electricity bills, a move that drew prompting applause but also highlighted the need for and an ERC warning that a change to the 2001 Electric Power Industry Reform Act (EPIRA). The Energy Regulatory Commission warned that congressional amendment (EPIRA) would be required, creating uncertainty about who would bear the underlying costs and prompting required. The announcement caused a dip in Meralco’s share price. Two days later, later Marcos urged Congress to amend EPIRA to prohibit passing bar the system‑loss charge and its value‑added tax onto from being passed to consumers. Consumer groups and the Davao Consumer Movement welcomed the effort move but cautioned warned that without broader regulatory reforms the costs cost could be shifted elsewhere. The Mindanao Development Authority also supported the amendment, noting its citing potential to boost regional economic growth benefits and address disparities in loss‑recovery rates between private utilities 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.

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  1. 2026-08-02 09:52 UTC Philippines electricity system loss charge reform
  2. 2026-08-02 00:52 UTC Philippines electricity system loss charge reform

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