Senate Energy Committee Chairman Erwin Tulfo said electric companies should not be allowed to recover systems loss charges through other items in consumers’ electricity bills.
Tulfo issued the warning amid concerns that removing the systems loss charge could simply result in the cost being transferred to distribution, supply or other charges.
“We have anticipated this loophole and it is unacceptable. We cannot remove systems loss from one line of the electricity bill only to see the same cost transferred somewhere else,” he said.
Tulfo said the proposed Senate Bill No. 2486, or the Systems Loss Charge Removal Act, specifically prohibits distribution utilities and electric cooperatives from recovering allowed losses through other charges.
“This is why the bill we are shepherding now explicitly prohibits distribution utilities and electric cooperative from recovering allowed losses through distribution wheeling charges, supply charges, metering charges, universal charges, subsidies, or any other item in the bill,” he said.
Tulfo, who sponsored the measure on the Senate floor on September 22, questioned why consumers should pay for electricity that they did not actually consume.
“Why do consumers pay for electricity that they did not consume? Why do consumers bear the brunt of inefficiencies and deteriorating facilities resulting in systems loss?” he said.
Tulfo urged the Senate to fast-track the measure, saying consumers should be protected from costs arising from systems losses.
“Let’s give Filipino consumers what they deserve: A reliable electricity and fair billing,” he said.IMT
