The Management Association of the Philippines (MAP) is pressing the government for deeper power sector reforms, arguing that lowering electricity costs will require more than trimming system loss charges and should include tougher enforcement, performance-based regulation, and stronger energy efficiency measures.
In recommendations issued Aug. 7, MAP said the government should tackle both generation and distribution costs while ensuring that efforts to reduce electricity prices do not compromise reliability or discourage investments needed to modernize the grid.
The business group urged the Department of Energy (DOE) and Energy Regulatory Commission (ERC) to base any changes to system loss caps on technical studies, empirical evidence, and international benchmarks.
MAP said regulators should draw a sharper line between unavoidable technical losses and preventable non-technical losses caused by electricity theft, inaccurate meters, weak controls, and operational shortcomings.
Consumers, it said, should not be made to shoulder costs arising from inefficiencies that utilities and other responsible entities can prevent.
Instead, MAP recommended shifting toward performance-based regulation, with distribution utilities and electric cooperatives given clear and progressively tighter loss-reduction targets. The framework should be backed by transparent reporting, independent audits, and incentives and penalties tied to actual performance.
The recommendations come as electricity costs remain a major concern for businesses, with high power prices affecting household budgets as well as the competitiveness of manufacturers and other energy-intensive industries.
MAP also called for a more aggressive campaign against electricity pilferage, while urging utilities to improve meter accuracy, internal controls, administrative systems, and technologies capable of detecting network losses.
Utilities that consistently post high losses should face closer regulatory scrutiny and, where warranted, governance or operational reforms, the group said.
At the same time, MAP cautioned against treating loss reduction as simply a cost-cutting exercise. It called for continued investments in grid modernization, network upgrades, digital systems, and advanced metering to improve efficiency without undermining service quality.
The group also urged the DOE to fully enforce the Energy Efficiency and Conservation Act, or Republic Act No. 11285, saying more efficient energy use could moderate long-term electricity costs by curbing demand and reducing pressure on the power system.
The broader message is clear: cheaper electricity will require accountability as much as infrastructure. For MAP, a more efficient power sector means making utilities responsible for what they can control while giving them the tools and incentives to perform better.
