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Philippines bill could spare consumers 'system loss' charges on power bills

"It is unjust to pay for electricity you do not consume."

Power poles and lines.

Photo Credit: iStock

A bill advanced by the Philippines' House Committee on Energy could target one of the most frustrating parts of a power bill: a separate "system loss" charge tied to energy customers did not directly use. The proposal would stop consumers from covering costs linked to power theft, malfunctioning meters, and utility inefficiencies.

Here's what to know

According to One News PH and the Manila Bulletin, the House Committee on Energy approved a measure on Oct. 12 that would prevent customers from paying for losses elsewhere in the system. "It is unjust to pay for electricity you do not consume," Cagayan de Oro 1st District Rep. Lordan Suan said in a media release.  

If the bill becomes law, policymakers expect it will "provide meaningful relief to Filipino consumers by eliminating a charge that should properly be borne by the entities responsible for managing and operating the (electricity) distribution network." 

More background

Electricity bills are among the most immediate household expenses, and costs in the distribution chain can affect monthly budgets when utilities pass them on to customers. 

Under this proposal, households would no longer pay for "system loss" related to power theft, broken meters, and utility inefficiencies.

The move follows President Ferdinand Marcos Jr. earmarking the issue as a legislative priority at his most recent State of the Nation Address, according to the media release.    

Where can I learn more?

Questions about who should bear electricity costs also come up in other power-bill debates. These stories look at how policies and clean upgrades can change what households pay.

• In the Philippine province of Pangasinan, homeowners say installing solar left their meter barely moving.

• Across the U.S., customers are being charged for regional transmission lines, and critics say it's an overreach.

• In California, regulators greenlit sweeping new changes that could bring major savings.

• In Ohio, lawmakers proposed demand-response programs to cut electricity costs for households.

• In Illinois, lawmakers regrouped around transformative new energy systems after a savings-focused bill failed.

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