Power to the People: Consumers Cheer Marcos Proposal to Slash 'System Loss' Charges from Electric Bills

A bold move to amend the EPIRA law could mean significant savings for Filipino households, but industry experts warn of potential trade-offs.

In a move that has electrified consumer groups across the Philippines, President Ferdinand "Bongbong" Marcos Jr. has proposed a sweeping reduction—and eventual elimination—of "systems loss" charges from monthly electricity bills. The announcement, made public on Tuesday, July 28, 2026, has been met with widespread approval from household consumers and advocacy groups who have long decried the opaque fees as a hidden tax on the poor.

What is 'Systems Loss' and Why Does It Matter?

Systems loss refers to the electricity lost during transmission and distribution—due to technical factors like line resistance and non-technical issues such as pilferage or meter tampering. Under the current Electric Power Industry Reform Act (EPIRA), distribution utilities are allowed to pass these losses onto consumers, typically accounting for 3% to 5% of a monthly bill.

For a typical Filipino household paying PHP 1,500 per month, that could mean PHP 60 to PHP 75 in charges that many consider unjust.

"Every peso counts for the average Filipino family," said Maria Concepcion Santos, a consumer advocate from the National Association of Electricity Consumers for Reforms (NASECORE). "This proposal is a long-overdue recognition that consumers should not be forced to shoulder inefficiencies they have no control over."

A Groundswell of Support

The proposal has garnered bipartisan support. In a statement, Northern Samar Representative Harris Ongchuan backed the amendment, arguing that "system loss charges are an antiquated practice that protects utility companies at the expense of the public."

The sentiment is echoed by local government units and consumer groups, who see this as a rare win for the ordinary Filipino in a sector historically dominated by large power players.

The Greenpeace Factor: A Call for True Reform

Not all reactions have been purely celebratory. Environmental group Greenpeace Philippines urged caution, warning that slashing systems loss charges alone is not a silver bullet. In a statement, the group called on Marcos to "choose renewable energy over false solutions," arguing that the real issue lies in the country's heavy reliance on expensive, imported fossil fuels.

"Reducing one line item on a bill is welcome, but it doesn't fix the fundamental problem: the Philippines has one of the highest electricity rates in Southeast Asia," said Greenpeace campaigner Diego Ramos. "True reform means shifting to decentralized, renewable energy sources that lower costs and increase energy independence."

What This Means for Your Electric Bill

If the proposal becomes law, here’s what consumers can expect:

• Immediate savings: A reduction of 3% to 5% on monthly bills.
• Long-term relief: The eventual removal of systems loss charges entirely.
• Potential trade-offs: Utilities may seek to recover lost revenue through other charges or rate adjustments.

Industry analysts caution that while the move is popular, it could create unintended consequences. Distribution utilities may push for higher base rates or new fees to compensate for lost revenue, potentially offsetting the savings.

The Road Ahead: Legislative Hurdles and Implementation

The proposal requires amendments to the EPIRA law, which will need to pass through both chambers of Congress. While the political climate appears favorable—with the administration holding a strong majority—the devil will be in the details.

Key questions remain: - Will utilities be forced to absorb the losses, or will they be allowed to recover them elsewhere? - How will the government monitor and enforce compliance? - What safeguards will prevent utilities from simply shifting costs to other line items?

Conclusion: A Promising First Step

President Marcos's proposal to slash systems loss charges is a clear signal that the administration is listening to consumer grievances. It addresses a tangible pain point for millions of Filipino households and could provide much-needed relief in a time of rising living costs.

However, as Greenpeace and other watchdogs remind us, this is just one piece of a much larger puzzle. True energy reform will require a holistic approach—one that tackles generation costs, promotes competition, and accelerates the transition to renewable energy.

For now, Filipino consumers have reason to be cautiously optimistic. The lights may be getting a little cheaper—but the work to truly power a fair and sustainable energy future is far from over.