( DC file photo)
Senator Jinggoy Estrada is pushing for the abolition of system loss charges passed on to electricity consumers, with proposed multimillion-peso fines and mandatory refunds for utilities that continue collecting them.
Under Senate Bill No. 2474, or the proposed System Loss Charges Abolition Act, technical and non-technical system losses would no longer be recoverable from consumers and would instead be shouldered by distribution utilities, electric cooperatives and other regulated entities.
The bill proposes fines ranging from Php 5 million to Php 10 million for a first offense, along with a full refund of prohibited collections plus legal interest.
A second offense would carry fines of Php 10 million to Php 20 million and a six-month suspension of executive officers. A third violation could lead the Energy Regulatory Commission to recommend franchise revocation to Congress, aside from additional penalties and possible criminal liability.
Estrada said consumers should not be made to pay for electricity lost through technical inefficiencies, pilferage, meter errors or tampering.
“Hindi tama na singilin ka sa kuryenteng hindi mo naman nagamit,” Estrada said.
Several senators have also filed measures seeking to remove or limit system loss charges, while the ERC has said recovery of such losses could eventually be reduced to zero, subject to the financial capacity of smaller utilities.
Estrada’s proposal also directs the ERC, Department of Energy and National Electrification Administration to assist power distributors in upgrading infrastructure and reducing system losses, with priority support for electric cooperatives in geographically isolated areas and those with persistently high losses.
