Jauhn Etienne Villaruel

Senator Erwin Tulfo files a bill seeking to eliminate the system loss charge at the Senate of the Philippines in Pasay City on Tuesday, July 28, 2026. The move follows President Ferdinand Marcos Jr.’s call during his fifth State of the Nation Address (SONA) to remove the fee from power bills and ease the burden of rising electricity costs on consumers. Maria Tan, ABS-CBN News

Article (news)

ENEGRY - SYSTEM LOSS CHARGE-

Victoria Tulad

ABS-CBN News

<div><span class="fr-img-caption fr-fic fr-dib" style="width:960px;display:block" width="960"><span class="fr-img-wrap"><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/178539601366720260728-senate-system-loss-charge-MT5.jpg" style="width:960px" class="fr-fic fr-dib" width="960"/><span class="fr-inner" style="text-align:left">Senator Erwin Tulfo files a bill seeking to eliminate the system loss charge at the Senate of the Philippines in Pasay City on Tuesday, July 28, 2026. The move follows President Ferdinand Marcos Jr.’s call during his fifth State of the Nation Address (SONA) to remove the fee from power bills and ease the burden of rising electricity costs on consumers. <em>Maria Tan, ABS-CBN News</em></span></span></span></div><p>MANILA — Senator Erwin Tulfo lashed at Meralco during the hearing of the Senate Committee on Energy on Thursday after the electric distribution utility explained how it deals and plans to deal with system loss.</p><p>System loss is the electricity lost in the process of transmission and there are two kinds — technical and non-technical.</p><div><a href="https://www.abs-cbn.com/news/business/2026/7/29/meralco-on-proposed-system-loss-charge-removal-who-will-bear-the-cost-1708">Meralco on proposed system loss charge removal: Who will bear the cost?</a></div><p>Technical system loss is the energy lost due to natural reasons while non-technical system loss is energy lost because of pilferage and illegal connection.</p><p>Jose Ronald Valles, Meralco Senior Vice President and Head of Regulatory Management, said they are aggressive in addressing illegal connections.</p><p>“Yung mga jumper, pagka nakita nila ang Meralco, ang Meralco na nandiyan, tatanggalin nila, pag-alis ng Meralco, ibabalik nila,” Valles said. </p><p>“Tinaas po namin ang metro sa mga ilang depressed areas para hindi maabot. Yet, may nangyayari pa rin hong non-technical losses. So, ang solusyon, kung gusto natin i-eradicate or tanggalin talaga ang non-technical loss eh kailangan ho damihan namin yung personel na 24/7 nag-iinspect dito sa mga kabahayan na ito at nakabantay sa bawat siguro, bawat isang kilometrong poste na umiikot sila o rumoronda sila at napakagastos po noon.”</p><p>“Para ma-achieve natin yung zero na sinasabi natin, non-technical losses, malaki naman po yung gagastusin namin na operational expenses at tsaka capital expenses, capital expenditure, na siya naman po ang kakarga na naman doon sa taripa. Kasi po, hindi naman papayagan ng any distribution utility na malugi sila dahil sa mga nagnanakaw ng kuryente. So gagawa sila ng paraan, sabi nyo nga, ay para ma-curb ito, para mabawasan ito, para ma-eradicate ito,” he explained.</p><p>Tulfo, chairperson of the committee, criticized Meralco.</p><p>“Are you saying na pag kailangan wala kayong losses, ipasa nyo sa amin? Yung pagdadagdag niyo ng mga tao, ipapasa, ikakarga na naman sa bill namin? Hindi na ho namin problema yun. Hindi na rin ho problema ng consumer yun. Magdagdag ka ng tao mo, mag-expand ka, wala kaming pakialam doon,” Tulfo remarked.</p><p>“Ayaw mo magkaroon ng losses, di wag ka, lumipat ka na ng negosyo. That&#x27;s what my point is, that&#x27;s what the people are saying right now. Bakit kami lagi? Wala na ba kayong sasagutin na losses? Puro na lang sa tao, pass on, puro pass on,” the lawmaker added.</p><p>Valles replied that they give back to costumers whenever they are able to prosecute pilferage of electricity.</p><p>“Pagka nagpo-prosecute kami ng pilferage, lahat po yan ang nare-recover ng Meralco na presyo ng kuryente na nawala ibinabalik din po namin yan sa customers bilang kabawasan sa aming generation cost. So, wala hong napupunta sa Meralco diyan. Kasi yung nakukuha, binabalik sa customers at yung buong buong system loss, actually part ng generation cost diyan, binabayad din naman niya sa generation companies,” Valles stated.</p><p>He said that the cost of attempting to lower the system loss is part of the reasonable cost Meralco presents to the Energy Regulatory Commission (ERC), which will decide if this will be passed on to customers or not.</p><p>Valles also mentioned that the system loss cap for it is 5.5 percent but only implements 4.22 percent as of 2025, which is why its charge to consumers is lower.</p><div><strong><br/></strong></div><div><strong>RELATED VIDEO</strong></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/-Gxeuk3YTpE?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span><br/></div>

<p>Jose Ronald Valles, Meralco Senior Vice President and Head of Regulatory Management, said they are aggressive in addressing illegal connections.</p>

Jose Ronald Valles, Meralco Senior Vice President and Head of Regulatory Management, said they are aggressive in addressing illegal connections.

Tulfo blasts Meralco on system loss; company says it gives back to consumers

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Tulfo blasts Meralco on system loss; company says it gives back to consumers

Victoria Tulad,

ABS-CBN News

Published July 30, 2026 03:20 PM PHT

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system loss

erwin tulfo

meralco

non-technical

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