Manila Electric Co. (Meralco) has backed President Ferdinand R. Marcos Jr.’s call to amend the Electric Power Industry Reform Act (EPIRA), but cautioned that scrapping system loss charges will require reforms that protect both consumers and the long-term stability of the country’s power grid.
The country’s largest power distributor said it will participate in congressional deliberations after the President urged lawmakers to revise EPIRA and remove provisions allowing distribution utilities to recover system loss charges from consumers.
“We respect President Marcos’ policy direction and will actively participate in the discussions as the proposed amendments to the EPIRA are deliberated,” Meralco Executive Vice President and Chief Operating Officer Ronnie L. Aperocho said.
The issue is emerging as one of the most closely watched energy reforms under the Marcos administration, as policymakers seek to bring down electricity prices without discouraging investments in power infrastructure.
Aperocho noted that system loss is not unique to Meralco but is an unavoidable part of electricity distribution. Even the most modern grids experience technical losses as electricity travels through power lines and substations.
He said Meralco has continued to invest in network modernization, digital technologies and operational upgrades, enabling it to keep its system loss below the 6.5 percent cap set by the Energy Regulatory Commission.
Rather than opposing the proposed reforms, Meralco is urging lawmakers to carefully weigh their long-term impact.
“We look forward to productive discussions which we hope will carefully consider the impact of reforms on the operations and sustainability of distribution utilities,” Aperocho said.
He added that reforms should preserve the ability of distribution utilities and electric cooperatives to invest in modern infrastructure, strengthen grid resilience and maintain safe, reliable electricity service.
The debate highlights the difficult balance facing Congress. Consumers want immediate relief from high power bills, but utilities argue that reducing recoverable costs without a replacement mechanism could slow investments needed to modernize the grid. How lawmakers resolve that tradeoff could shape the future cost and reliability of electricity in the Philippines.
