Benise Balaoing

High voltage towers that support transmission lines for electrical power distribution in the Luzon grid is seen from a residential area in Baesa, Quezon City on Tuesday, May 9 2023. The National Grid Corporation declared a red alert status on the Luzon grid on Monday, raising the possibility of power shortage or brownouts in some provinces. The NGCP also said that three power plants are “running on derated capacities” and other five are “on forced outage”. Maria Tan, ABS-CBN News

Article (news)

ELECTRICITY-GRID

ABS-CBN News

MANILA (UPDATED) — The Energy Regulatory Commission (ERC) on Tuesday said it backs President Ferdinand Marcos Jr.&#x27;s call to remove the system loss charge from consumers&#x27; electricity bills.<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" rel="noopener noreferrer" target="_blank">Marcos wants systems loss charges removed from electricity bill; rooftop solar made easier</a></div>In a statement, the ERC said it &quot;affirms its support for policy reforms that place the welfare of electricity consumers at the forefront.&quot;&quot;The Commission likewise recognizes the importance of pursuing measures that help reduce unnecessary costs while ensuring the viability of all distribution utilities,&quot; it said.The ERC said it is willing to work with Congress, the Department of Energy (DOE), industry stakeholders, and other government agencies to work on the legal and regulatory measures needed for this reform.Energy Secretary Sharon Garin has noted that to remove the system loss charge, Congress will need to <a href="https://www.abs-cbn.com/news/business/2026/7/28/doe-chief-says-epira-amendments-need-congress-approval-1202" rel="noopener noreferrer" target="_blank">amend EPIRA</a> or the  Electric Power Industry Reform Act of 2001.<div>Meralco looks forward to discussions</div>Meanwhile, Meralco--the country&#x27;s largest private electric distribution utility company--said it looks forward to &quot;productive discussions&quot; on how reforms will affect the operation and sustainability of distribution utilities.&quot;We believe it is important to recognize that system loss is not unique to any distribution utility but is a common operational aspect of the delivery of electricity, which affects the entire power industry,&quot; said Meralco executive vice president Engineer Ronnie Aperocho.&quot;While distribution utilities like Meralco continue to invest in modernizing and upgrading facilities and deploying technologies that reduce system losses, a certain level of technical losses remains inherent in operating an electric distribution system,&quot; he explained. &quot;For Meralco’s part, we have consistently invested in system loss management initiatives, network modernization, and operational efficiencies — which enable us to maintain our system loss well below the 6.5 percent cap set by the ERC,&quot; he said.Aperocho said reforms that will truly benefit consumers will consider power distributors and electric cooperatives as well.&quot;To ensure real benefits to consumers, these reforms should also support the ability of distribution utilities and electric cooperatives to efficiently operate, invest in infrastructure and system resilience, and deliver safe and stable electricity service,&quot; he said.Meralco charges a 5 percent system loss as part of the generation and transmission costs paid to generation companies and the National Grid Corporation of the Philippines.<div>ERRATUM: An earlier version of this story said that Meralco backs the President&#x27;s call to remove the system loss charge, when the company said it was only looking to participate in the discussions. We regret the error.</div>

The ERC said it backs President Ferdinand Marcos Jr.'s call to remove the system loss charge from consumers' electricity bills.

The ERC said it backs President Ferdinand Marcos Jr.'s call to remove the system loss charge from consumers' electricity bills.

ERC backs push to remove system loss charge

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ERC backs push to remove system loss charge

Benise Balaoing,

ABS-CBN News

Published July 28, 2026 12:05 PM PHT

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Updated July 28, 2026 01:39 PM PHT

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ERC

Meralco

system loss charge

Energy Regulatory Commission

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