N. Samar solon supports Marcos bid to remove system loss fees

TACLOBAN CITY — Northern Samar Second District Rep. Edwin Ongchuan has thrown his support behind President Ferdinand Marcos Jr.’s proposal to amend the Electric Power Industry Reform Act (EPIRA), particularly the plan to remove system loss charges from consumers’ electricity bills, saying the reform would help reduce the impact of high electricity costs on households.

Ongchuan, who serves as vice chairperson of the House Committee on Energy, said lawmakers should review Republic Act No. 9136, or the EPIRA, to ensure the law remains responsive to the needs of consumers and the evolving demands of the country’s power sector.

“It is about time to revisit the EPIRA Law so that it can be aligned with the needs of the people today. As the representative of the Second District of Northern Samar, I will support the amendment to the EPIRA Law,” Ongchuan said in a statement.

READ: Tulfo maps Senate action on Marcos’ SONA energy agenda

The lawmaker’s statement came a day after President Marcos, in his fifth State of the Nation Address (Sona), urged Congress to immediately amend the EPIRA and prohibit the charging of system loss—including the corresponding value-added tax—to electricity consumers.

“If we are talking about lowering prices, I believe it is time to remove the systems loss charge that is being passed on to consumers,” the President said during his address.

READ: 1% cap on power system loss charges proposed in Senate

At present, the Northern Samar Electric Cooperative (Norsamelco), the power utility that serves the entire province, charges P1.3487 per kilowatt-hour for systems loss, which is higher than last month’s P1.2192/kWh.

System loss refers to electricity lost during transmission and distribution due to technical inefficiencies, line losses, pilferage, and other factors. Under existing regulations, distribution utilities could recover a portion of these losses by passing the costs on to consumers through their monthly electricity bills.

Ongchuan said he has long advocated measures to lower electricity costs, particularly in areas served by the Small Power Utilities Group (SPUG), where power generation costs are generally higher than in grid-connected areas.

He said he previously filed resolutions urging government intervention to cushion the impact of rising fuel prices in SPUG-served communities and to investigate electricity line rental charges that have contributed to high power rates in Eastern Visayas.

The congressman also cited his role in authoring and supporting energy-related legislation, including Republic Act No. 12316, which suspended excise taxes on petroleum products to help mitigate the impact of soaring fuel prices.

President Marcos’ proposal to amend the EPIRA was among the major energy reforms outlined in his fifth SONA as part of his administration’s efforts to reduce electricity costs.

Enacted in 2001, the EPIRA restructured and privatized the Philippine power industry to encourage competition and private sector investment.

Over the years, however, lawmakers, consumer groups, and business organizations have called for amendments to the law, arguing that certain provisions—including the recovery of system loss charges from consumers—have contributed to persistently high electricity rates in the country.

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