Marilyn Cahatol

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<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/17856424311451785642425883.jpeg" style="width:960px" class="fr-fic fr-dib" width="960"/><span class="fr-inner" style="text-align:left">Workers inspect an electric meter installed above ground in Manila on January 11, 2024. <em>Mark Demayo, ABS-CBN News </em></span></span></span></div><p>MANILA — A bill seeking to remove system loss charges from the electricity bills has been filed at the House of Representatives.</p><p>House Speaker Faustino “Bojie” Dy III and Majority Leader Sandro Marcos of Ilocos Norte filed the House Bill (HB) No. 10430 or the Systems Loss Charge Abolition Act.</p><p>The bill follows President Ferdinand Marcos Jr.’s <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">announcement </a>during his fifth State of the Nation Address (SONA) that systems loss should not be charged to the electricity bills of consumers.</p><p>System loss is caused by power theft, faulty meters, weak collection systems, poor maintenance, inefficient operations or negligence by distribution utilities.</p><p>The bill prohibits distribution utilities from recovering disallowed system losses through wheeling charges, supply charges, metering charges, universal charges, subsidies or any other item appearing on the monthly bill.</p><p>It also prohibits making consumers pay for losses caused by defective or inaccurate meters, billing and collection deficiencies, inadequate maintenance, inefficient operations, negligence and other causes reasonably within the utility’s control.</p><p>Under the bill, distribution utilities can still recover prudent and reasonable costs necessary to maintain reliable service and remain financially viable.</p><p>The bill proposes the Energy Regulatory Commission implement the reform in phases to not disrupt electricity reliability, which should completely take effect within three years.</p><p>Sen. Erwin Tulfo <a href="https://www.abs-cbn.com/news/business/2026/7/30/tulfo-blasts-meralco-on-system-loss-company-says-it-gives-back-to-consumers-1520">filed a similar bill </a>at the Senate. Senate President Sherwin Gatchalian supported it and said distribution utilities are capable of shouldering the system loss.</p><p>The ERC meanwhile <a href="https://www.abs-cbn.com/news/business/2026/7/30/power-distributors-say-they-can-t-absorb-system-loss-1751">said </a>it is willing to work with Congress, the Department of Energy, industry stakeholders, and other government agencies to work on the legal and regulatory measures needed for the reform.</p><p>Private utilities and electric cooperatives nationwide have said<a href="https://www.abs-cbn.com/news/business/2026/7/30/power-distributors-say-they-can-t-absorb-system-loss-1751"> they cannot afford </a>to absorb the system loss expenses.</p><p>Meralco Chairman Manny V. Pangilinan said the country&#x27;s largest private electric distribution utility company “will not survive” shouldering its system loss that costs around “ten of billions of pesos.”</p><div><br/></div><div><strong>RELATED VIDEO:</strong></div><div style="text-align:center"><iframe width="560" height="315" src="https://www.youtube.com/embed/EN_6sSiluf8?si=W6f0uG3MZYshIQia" title="YouTube video player" frameBorder="0" allowfullscreen=""></iframe></div>

<p>House Speaker Faustino “Bojie” Dy III and Majority Leader Sandro Marcos of Ilocos Norte filed the House Bill (HB) No. 10430 or the Systems Loss Charge Abolition Act.</p>

House Speaker Faustino “Bojie” Dy III and Majority Leader Sandro Marcos of Ilocos Norte filed the House Bill (HB) No. 10430 or the Systems Loss Charge Abolition Act.

House bill vs system loss charges filed

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House bill vs system loss charges filed

Marilyn Cahatol,

ABS-CBN News

Published August 02, 2026 01:08 PM PHT

Read More:

system loss

House of Representatives

Bojie Dy

Sandro Marcos

Meralco

Ferdinand Marcos Jr.

electricity bill

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