The National Electrification Administration (NEA) is assessing potential strategies to execute President Ferdinand Marcos Jr.’s directive to eliminate system loss charges from electricity bills, while ensuring electric cooperatives maintain their financial viability.
Following instructions from Energy Secretary Sharon Garin, NEA Administrator Antonio Almeda confirmed that the agency is urgently preparing a position paper to analyze how the policy can be realistically implemented.
Almeda framed the President’s order—which was highlighted during his fifth State of the Nation Address (SONA)—as a timely push for the energy sector to seek creative solutions to high power costs and alleviate financial strains on Filipino households.
Referring to the directive and the need to curb electricity expenses, Almeda shared during a radio interview with DZRH:
“Napag-usapan namin, ‘yung aming Secretary Sharon Garin, inutusan kami na gumawa kaagad ng position paper na pag-aralan, masusing pag-aaral kung paano ipatutupad ang hiling ng Presidente.”
He added:
“Personally, I think this is a wake up call doon sa non-technical na, we all better save up para naman hindi… Syempre ‘yung gobyerno natin ngayon ay naghahanap ng lahat ng paraan para maibsan ang hirap ng mga kababayan natin and I think this is a good start.”
Regarding technical intricacies and official regulatory adjustments around system loss, Almeda noted that the agency defers to the Energy Regulatory Commission (ERC) so as not to preempt its ruling:
“Ayokong pangunahan ang ERC sa bagay na ‘yan… Ang maaassure lang namin sa publiko ay pag-aaralan naming mabuti at inuumpisahan na namin pag-aralan.”
Beyond system loss charges, Almeda revealed that the broader review could encompass other longstanding policies and operational expenses that inflate electricity rates, such as line rentals:
“Hindi lang naman system loss ang dapat na sigurong tingnan dito. May mga bagay na pwedeng pag-aralan at reviewhin, baka naman pwede natin i-reconsider yung mga polisiya, yung mga business as usual gaya ng line rental.”
However, he emphasized that any policy overhaul must be carefully calculated to guarantee that electric cooperatives receive necessary government support and remain financially capable of operating sustainably:
“Lahat talaga kailangan pagtibayin ang pag-aaral at syempre kailangan ng kooperatiba ang tulong ng gobyerno.“
While no strict timeline has been established for the review, Almeda expressed optimism that close coordination among energy stakeholders will yield relief for power consumers:
“Kapag nagsama-sama at nag-usap-usap baka naman kahit paaano may maiibsan at may mababawas kahit paunti-unti. Kung maibibigay natin nang buo, bakit hindi, pero lahat kailangan pag-aralan.”