Visayan Electric backs system loss cut

Visayan Electric backs system loss cut
SYSTEMS LOSS. President Ferdinand Marcos Jr. has asked Congress to amend the Epira law in order to illiminate the systems loss charged to consumers. /SunStar file
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Summary

  • Visayan Electric Company backed President Ferdinand Marcos Jr.’s proposal to remove system loss charges from electricity bills to make power rates fairer for consumers.

  • Erik Monsanto, Visayan Electric head of Marketing and Communications, stated on Tuesday, July 28, 2026, that the utility keeps its system losses below regulatory caps and fights power pilferage to protect customers from unnecessary costs.

  • The Department of Energy and the Energy Regulatory Commission also endorsed the proposed amendments to the Electric Power Industry Reform Act to enhance consumer protection and transparency.

VISAYAN Electric Company has backed President Ferdinand Marcos Jr.’s proposal to remove system loss charges from consumers’ electricity bills, saying the measure would make power rates fairer and prevent customers from paying for costs beyond their control.

In a statement sent to SunStar Cebu on Tuesday, July 28, 2026, following the President’s fifth State of the Nation Address (Sona), the utility said it supports reforms that would ensure households and businesses are no longer burdened by system losses arising from technical inefficiencies or electricity theft.

Visayan Electric said it has consistently kept its system losses below the regulatory cap through continued investments in distribution infrastructure and sustained campaigns against illegal connections and power pilferage.

“We stand firmly behind the President’s goal of fairer electricity bills for all. Visayan Electric consistently works to keep system losses below the regulatory cap to help protect customers from unnecessary costs,” said Erik Monsanto, the company’s head of Marketing and Communications.

He added that the utility would continue intensifying efforts against power pilferage, which remains one of the major contributors to unnecessary costs ultimately borne by paying consumers.

Visayan Electric also said it is prepared to work with the Department of Energy (DOE), the Energy Regulatory Commission (ERC) and other industry stakeholders as Congress studies proposed amendments to the Electric Power Industry Reform Act (Epira).

Under Epira, distribution utilities are allowed to recover only ERC-approved system losses through consumers’ electricity bills. System loss refers to the difference between the electricity entering the distribution network and the electricity actually delivered to customers, including both technical and certain non-technical losses, subject to regulatory caps.

Epira reform

The proposal seeks to shift such costs away from households and businesses while making electricity pricing more transparent and accountable.

The DOE expressed full support for the proposed amendments, saying the country’s power sector needs an updated legal and regulatory framework 25 years after Epira took effect.

The department said the reforms should strike a balance between making electricity more affordable and maintaining an investment climate that supports reliable and modern energy infrastructure.

“Twenty-five years after Epira transformed the Philippine power sector, the time has come to ensure that our legal and regulatory framework keeps pace with today’s realities,” the DOE said.

“Legislative reforms must continue to encourage investments in modern infrastructure, improve operational efficiency, strengthen regulatory oversight and promote greater accountability across the entire electricity value chain, while ensuring that Filipinos receive affordable, dependable and high-quality electricity service,” DOE added.

The ERC likewise endorsed the proposal, describing it as a significant step toward greater consumer protection and more transparent electricity regulation.

The commission said it remains committed to promoting fair, accountable and efficient regulation while supporting reforms that could help reduce electricity rates without compromising the quality, reliability and sustainability of power service.

Both the DOE and ERC said they would continue working with industry stakeholders as Congress deliberates on the proposed amendments to Epira. / DPC

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