MANILA, Philippines — Electric utilities and cooperatives could soon face steep financial penalties and be forced to issue refunds if they pass the cost of lost electricity onto customers under a new measure filed in the Senate.
Senate Bill No. 2474, authored by Senator Jinggoy Estrada, aims to mandate that power distribution entities absorb technical and non-technical system losses rather than passing them off to electricity bill payers.
Initial violations under the proposed System Loss Charges Abolition Act carry fines ranging between ₱5 million and ₱10 million, along with a full refund of illegal charges to consumers with interest. A second offense imposes fines of up to ₱20 million and a six-month suspension for executive officers.
Subsequent violations could lead to criminal charges and a recommendation from the Energy Regulatory Commission (ERC) for Congress to revoke the power utility’s franchise.
“This measure seeks to rectify the ongoing injustice imposed against Filipino consumers who assume the responsibility of paying for electricity lost through no fault of their own,” Estrada said.
“It is unconscionable, to say the least, to allow this unjust regime to persist any further. Hindi tama na singilin ka sa kuryenteng hindi mo naman nagamit. At lalong hindi tama na sa bulsa ng mga konsyumer ang singil dahil sa kapabayaan sa sistema,” Estrada added.
System losses refer to power wasted through physical equipment friction and dissipation during delivery, as well as unmetered loss due to theft, meter manipulation, or administrative errors. Under SB 2474, these operational losses would be strictly classified as non-recoverable expenses.
To cushion the impact on smaller distributors, the bill directs the ERC, Department of Energy, and National Electrification Administration to assist utilities—particularly remote electric cooperatives—with infrastructure modernization and loss-reduction plans.