Chalssea Kate Echegoyen

President Ferdinand Marcos Jr delivers his 5th State of the Nation Address at the House of Representatives in Quezon City on July 27, 2026.  Jonathan Cellona , ABS-CBN News

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2026 SONA - 20th CONGRESS

ABS-CBN News

<p>MANILA – The Department of Energy (DOE) said Tuesday that President Ferdinand Marcos Jr.’s proposal to stop electricity consumers from paying for the system loss charge would require amendments to the Electric Power Industry Reform Act (EPIRA), although regulators could immediately tighten existing policies.</p><p>Speaking a day after Marcos delivered his fifth State of the Nation Address (SONA), Energy Secretary Sharon Garin said the DOE and the Energy Regulatory Commission (ERC) could begin issuing policies to lessen the burden on consumers, but removing system loss charges altogether would need congressional action.</p><p>“We can only go so much. We cannot totally issue a policy removing it because that’s against the law. But we can already start lowering it or become stricter in the policies on how to implement it,” Garin said.</p><p>“To totally remove it, that would be against the law on our side,” she added.</p><p>In his fifth SONA on Monday, Marcos urged Congress to amend the EPIRA to prohibit the charging of system losses to electricity consumers, saying Filipinos should no longer shoulder costs resulting from inefficiencies in power distribution.</p><div><a href="https://www.abs-cbn.com/news/business/2026/7/27/marcos-wants-systems-loss-charges-removed-from-electricity-bill-rooftop-solar-made-easier-1727">Marcos wants systems loss charges removed from electricity bill; rooftop solar made easier</a></div><p>Under the EPIRA, distribution utilities and electric cooperatives are allowed to recover a portion of electricity lost through technical inefficiencies and pilferage from consumers, subject to caps imposed by the ERC.</p><p>Garin said system loss charges vary depending on the distribution utility, but in some cases could amount to roughly P1 per kilowatt-hour consumed.</p><p>The energy chief also expressed support for Marcos’ proposed “Sariling Kuryente Act,” which seeks to encourage households to generate their own electricity through rooftop solar panels and other renewable energy sources.</p><p>“It’s one of those things where Australia is strong. Almost all houses there produce their own power. If we institutionalize that, we can have more incentives and more benefits for sariling kuryente na bahay,” she said.</p><div><strong>Fifth SONA energy agenda</strong></div><p>Energy was among the key sectors highlighted by Marcos during his fifth SONA, where he sought Congress’ support for measures aimed at lowering electricity costs.</p><p>Aside from amending the EPIRA, the President also called for the passage of the “Sariling Kuryente Act” and touted the awarding of 14 oil and gas exploration contracts, the highest under any administration, to strengthen the country’s energy security as the Malampaya gas field nears depletion.</p><div><a href="https://www.abs-cbn.com/news/business/2026/7/27/sona-2026-marcos-says-perhaps-time-to-revisit-nuclear-energy-1921">SONA 2026: Marcos says &#x27;perhaps time to revisit nuclear energy&#x27;</a></div><p>Marcos also renewed his administration’s push to make electricity more affordable, as the Philippines continues to post some of the highest power rates in the region.</p><div><strong>DOE cites progress on previous SONA commitments</strong></div><p>Asked about Marcos’ earlier energy promises, Garin said the country’s household electrification rate has reached around 94 percent to 95 percent, although she acknowledged that the goal remains a “moving target” as more homes are built.</p><p>“We’ve improved vastly on electrification. I think we’re already at 94 to 95 percent. It’s a moving target because the more houses are built, the target also moves,” she said.</p><p>Marcos had repeatedly vowed in his previous SONAs to achieve 100 percent household electrification before the end of his term.</p><p>Garin also said the administration remains on track to achieve its target of increasing the share of renewable energy in the country’s power generation mix to 35 percent by 2030, noting that renewable energy currently accounts for about 25 percent.</p><p>She added that the Mindanao-Visayas Interconnection Project, highlighted by Marcos during his 2023 SONA, has already been completed, linking Luzon, Visayas and Mindanao into a single power grid.</p><p>“The whole Philippines is now one grid. It helped in the stability of the grid and the supply of power,” Garin said.</p><p>She clarified, however, that while the interconnection improved energy security by allowing regions to share excess electricity, “it’s not exactly directly lowering the prices.”</p><p>The energy chief acknowledged that new power plants and transmission projects take years to complete, meaning their effects on electricity prices and supply reliability would take time to materialize.</p><p>“We’re working on it now so that by the next administration, we will have a more stable and cheaper supply,” she said.</p><p>Garin also defended the administration’s renewable energy reforms, saying the government has streamlined permitting processes and canceled inactive renewable energy contracts to allow new investors to develop stalled projects.</p><p>She said the DOE is also crafting stricter accountability measures against power generation companies that repeatedly fail to meet their contractual obligations.</p><p>“There are certain standards and accountability that have to be there because you’re making money, you’re serving people, but you’re also making money,” she said. “We’re formulating a system now… if you strike one, strike two, strike three, there are certain penalties or, in fact, cancellation of permits that can happen.”</p><div><a href="https://www.abs-cbn.com/news/business/2026/7/27/marcos-banks-on-trade-deals-ai-to-power-next-wave-of-philippine-growth-1950">Marcos banks on trade deals, AI to power next wave of Philippine growth</a></div><div><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="640" height="360" src="https://www.youtube.com/embed/5xie4NT2q_8?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="640" height="360" src="https://www.youtube.com/embed/erw0IDRGjt0?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span><br/></div>

<p>The Department of Energy (DOE) said Tuesday that President Ferdinand Marcos Jr.’s proposal to stop electricity consumers from paying for system losses would require amendments to the Electric Power Industry Reform Act (EPIRA), although regulators could immediately tighten existing policies.</p>

The Department of Energy (DOE) said Tuesday that President Ferdinand Marcos Jr.’s proposal to stop electricity consumers from paying for system losses would require amendments to the Electric Power Industry Reform Act (EPIRA), although regulators could immediately tighten existing policies.

DOE: Marcos’ proposed EPIRA amendments need Congress’ approval, but policy changes can begin now

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DOE: Marcos’ proposed EPIRA amendments need Congress’ approval, but policy changes can begin now

Chalssea Kate Echegoyen,

ABS-CBN News

Published July 28, 2026 12:02 PM PHT

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