The Department of Energy is eyeing immediate measures to curb electricity pilferage as part of the government’s push to remove system loss charges from consumer bills, though major industry players warn the plan could carry a massive price tag.
Energy Secretary Sharon Garin stated that while amending the Electric Power Industry Reform Act will take time, power distributors and electric cooperatives can act right away by tackling non-technical system losses, which stem mainly from illegal connections and electricity theft. Officials estimate that passing the necessary legislative reforms could take at least a year.
Energy Undersecretary Rowena Cristina Guevara emphasized that cutting down on power theft is a realistic short-term goal, as distributors simply need to track down non-paying customers and tampered meters. She added that improving technical losses—the natural dissipation of electricity through grid infrastructure—will require capital investments and faster regulatory approvals for upgrade projects. The ultimate goal of these combined efforts, according to energy officials, is to significantly lower electricity rates for consumers.
However, power sector leaders have raised strong concerns on the financial impact of completely scrapping system loss charges. Meralco chairman Manuel Pangilinan warned that removing these fees could cost the power sector tens of billions of pesos, noting that the industry cannot absorb such a massive financial burden on its own.
Electric cooperatives have expressed similar reservations. The Philippine Rural Electric Cooperatives Association said that while it supports removing the value-added tax on unutilized energy, eliminating system loss charges entirely could bankrupt non-profit distributors operating in challenging rural terrains. The group urged the government to either directly subsidize these physical distribution losses or implement a phased, performance-driven transition supported by grid upgrade funding.
