ERC Supports Removal Of Systems Loss Charge To Lower Electricity Bills In The Philippines

The Energy Regulatory Commission (ERC) has expressed its support for President Ferdinand R. Marcos Jr.’s call to remove the systems loss charge from electricity bills, saying the move could help reduce the financial burden on Filipino consumers.

The President raised the issue during his fifth State of the Nation Address (SONA) on July 27, 2026, held at the Batasang Pambansa Complex. In his speech, Marcos urged Congress to take action to remove the systems loss fee, which is included in power bills to recover the cost of electricity lost during transmission, distribution, or due to unbilled consumption.

The President said eliminating the charge would provide relief to households and businesses that continue to face higher electricity costs. He emphasized that reducing unnecessary expenses in power bills is important to help Filipino families and support local enterprises.

In response, the ERC welcomed the President’s directive and said it is ready to support reforms that protect electricity consumers. The commission stated that lowering electricity costs remains one of its major priorities while ensuring that distribution utilities remain financially stable and capable of providing reliable services.

The ERC explained that any changes involving the system loss charge must be carefully planned to maintain a balance between consumer protection and the operational needs of power providers. It said a more efficient and affordable electricity sector can only be achieved through cooperation among government agencies, lawmakers, and industry stakeholders.

The regulatory agency also expressed its willingness to work with Congress, the Department of Energy (DOE), electric companies, and other concerned groups to develop the necessary legal and regulatory measures for implementing the proposed reform.

The ERC, as the country’s independent power industry regulator, reaffirmed its commitment to promoting fair, transparent, and accountable electricity regulation. It said it will continue pursuing programs aimed at lowering power costs while maintaining the quality, reliability, and sustainability of electricity services throughout the Philippines.

The commission stressed that consumer welfare will remain at the center of its policies as it works toward improving the country’s power sector. The proposed removal of the systems loss charge is expected to be part of broader efforts to make electricity more affordable and accessible for Filipino consumers.