Senator Francis “Chiz” Escudero has filed a measure prohibiting power distribution utilities from shifting system loss costs onto consumers, insisting that the public should only pay for the energy they actually consume.
Escudero introduced Senate Bill No. 2345 to amend the Electric Power Industry Reform Act of 2001 (EPIRA). The proposed legislation seeks to prevent power companies from recovering costs tied to technical inefficiencies, outdated infrastructure, and electricity theft directly from end-users.
The bill was submitted on July 28, just a day after President Ferdinand Marcos Jr. called on lawmakers during his fifth State of the Nation Address (SONA) to amend EPIRA and strip system loss fees from monthly power bills.
Echoing the Chief Executive’s stance, Escudero pointed out that consumers have zero control over the operational shortcomings of distribution networks.
”Consumers neither control nor contribute to the technical condition of the grid, nor are responsible for losses arising from inefficient operations, outdated infrastructure or electricity theft,” Escudero stated, adding that passing on these charges “has become increasingly difficult to justify.”
By forcing distribution utilities to absorb these operational losses themselves, the reform aims to compel utility companies to modernize their infrastructure and improve service delivery while lowering overall electricity rates for Filipino households.
”This bill is founded on the principle that consumers should pay only for the electricity they actually consume,” he noted. “In so doing, it promotes fairness in electricity pricing and encourages greater operational efficiency.”
If passed, the measure is expected to strengthen government oversight over utility companies while providing much-needed relief to electricity consumers nationwide.