Senate Committee on Energy Chairman Erwin Tulfo assured the public that removal of systems loss charge cannot be recovered by electric companies in other ways.
This follows concerns of consumers that the impending removal of systems loss charges may just be recovered by electric companies in other ways, such as lodging it on distribution and supply charges.
“We cannot remove systems loss from one line of the electricity bill only to see the same cost transferred somewhere else.”
“We have anticipated this loophole and it is unacceptable. We cannot remove systems loss from one line of the electricity bill only to see the same cost transferred somewhere else,” Tulfo said.
“This is why the bill we are shepherding now explicitly prohibits distribution utilities and electric cooperative from recovering allowed losses through distribution wheeling charges, supply charges, metering charges, universal charges, subsidies, or any other item in the bill,” the legislator continued.
The Senate Energy Panel chairman refers to the Senate Bill No. 2486 or the “Systems Loss Charge Removal Act”, an administration priority measure, which he successfully sponsored at the Senate Floor.
“Why do consumers pay for electricity that they did not consume?”
“Why do consumers pay for electricity that they did not consume? Why do consumers bear the brunt of inefficiencies and deteriorating facilities resulting in systems loss?” the lawmaker asked.
“Consumers lose with this mechanism. Because they solely carry both the burden of system loss and the inefficiencies,” the senator lamented.
He then urged the fast-tracking of the proposed legislation’s enactment to swiftly remove unnecessary costs suffered by consumers.
“Electricity is not a luxury. It is a basic necessity the modern society needs to operate with dignity,” Tulfo remarked.
“Let’s give Filipino consumers what they deserve: reliable electricity and fair billing,” he concluded.
