PRESIDENT Ferdinand Marcos Jr. has called for the amendment of Electric Power Industry Reform Act (Epira), or Republic Act 9136, particularly to prohibit the charging of systems loss against consumers.
In his fifth State of the Nation Address (Sona) on Monday, July 27, 2026, Marcos said systems loss charges should not be shouldered by the consumers.
“Panahon na para tanggalin na natin ang systems loss na pinapasa sa consumer. Pinapasa ito sa consumer at kinakarga sa bill na pinapatungan pa ng Value Added Tax (VAT). Hindi naman kasalanan ng konsumer kung bakit nagkaroon ng systems loss kaya hindi naman tama na dapat sila pa ang pagbabayarin dito,” he said.
(It is time to eliminate the system loss charges being passed on to consumers. These charges are transferred to consumers and added to their electricity bills, which are then also subject to the Value Added Tax (VAT). Consumers are not responsible for why system losses occur, so it is not right that they should be made to pay for them.)
“Therefore we the people request, no, we demand for the immediate amendment of Epira and to prohibit charging systems loss against consumers including the VAT thereon,” he added.
Enacted in 2001, under the presidency of now Congresswoman Gloria Macapagal Arroyo, the Epira law fundamentally restructured the Philippine power industry. Its objectives were to privatize much of the electricity sector, encourage competition, improve efficiency, and ultimately lower electricity prices.
However, one of its most controversial consequences is that consumers continue to pay a system loss charge as part of their monthly electric bill.
Systems loss is the electricity that is generated and purchased by a distribution utility (DU) but never reaches paying customers.
To further help households reduce their power costs, the President appealed to Congress to pass the proposed "Sariling Kuryente" Act, which seeks to simplify and lower the cost of installing rooftop solar panels and battery storage systems in homes.
Marcos said empowering families to generate their own electricity would not only help lower monthly electricity expenses but also contribute to the country's long-term energy security.
The President assured the government’s continued effort to accelerate the development of power projects across the country to ensure a stable electricity supply for millions of Filipino households while preparing for the country's growing energy needs.
“Ang mga nagdaang buwan ay nagpaalala sa atin na kailangan nating paramihin ang pinagkukunan natin ng kuryente. Ito ay isang tanda ng pagiging matatag na bansa,” he said.
(The past few months have reminded us of the need to diversify and increase our sources of electricity. This is a sign of being a resilient nation.)
The President said the government is closely monitoring around 200 energy projects scheduled for completion before the end of his term in 2028.
He said these projects will add nearly 10,000 megawatts (MW) of electricity to the country's power supply once completed.
Of the total, 45 projects have already been finished, 31 more are expected to be completed this year, while 124 projects are targeted for completion over the next two years.
Marcos said the additional power capacity will help ensure enough electricity for households and businesses as demand continues to rise.
Aside from building new power plants, Marcos said the government is also investing in energy storage systems, which function like large batteries capable of storing excess electricity and releasing it when demand is high or power generation is low.
He said these storage facilities will contribute more than 1,700 MW of capacity, providing additional power security for nearly 30 million households and industries by 2028.
Marcos attributed the faster implementation of energy projects to reforms that have streamlined government processes and made it easier for both local and foreign investors to develop power facilities in the country.
While recognizing the role of conventional power plants, the President said the administration is giving greater priority to energy sources that do not rely on imported fuel.
He noted that the government has already added more than 60 renewable energy facilities, including geothermal, solar, hydroelectric, wind, and biomass power plants, as part of efforts to diversify the country's energy mix and reduce dependence on imported oil.
Marcos also highlighted developments in the country's natural gas sector.
“Because of the extension of the Malampaya service contract until 2039, drilling operations once again resumed for the first time in eight years. What we have uncovered is truly a national treasure: an untapped reserve of 222 billion cubic feet of natural gas, which bodes well for the continuous production of our premier gas field until 2034,” he said.
“To put it in context, 222 billion cubic feet of natural gas is sufficient to power 1.6 million households for the next eight years until 2034. Inspired by this development, we have already awarded a total of fourteen petroleum service contracts — in Luzon, Visayas, and Mindanao. By far, this is the highest number of such contracts ever to be awarded during a single term of any President in our history,” he added.
The President said among the 14 petroleum service contracts awarded across Luzon, Visayas, and Mindanao, four contracts are for hydrogen exploration and production, which the administration sees as a promising source of clean energy and a potential backup fuel for power plants, particularly in off-grid communities.
He added that two of the newly awarded contracts are being jointly managed with the Bangsamoro Autonomous Region in Muslim Mindanao (Barmm), marking the first such partnership between the national government and the regional government in the energy sector.
The President also disclosed that the government has begun laying the groundwork for hydrogen-powered plants, with several projects now in the pre-development stage in Marinduque, Masbate, Zamboanga Sibugay, Basilan, and other areas.
Marcos also said that the administration is revisiting the possibility of using nuclear energy to help strengthen the country's long-term energy security and reduce electricity costs.
“Pushing the envelope further, perhaps it is time for us to revisit nuclear energy production. We are already using nuclear energy in the fields of medicine, agriculture, water filtration, and the upcycling of plastic. We are confident in its capacity to reinforce our energy security and bring down the cost of electricity in our country,” he said.
“Titiyakin nating ito ay ligtas. Titiyakin din nating maipaliwanag nang mabuti sa publiko ang magandang dulot sa atin ng enerhiyang nukleyar,” he added.
(We will ensure that it is safe. We will also make sure that the benefits of nuclear energy are properly explained to the public.) (TPM/SunStar Philippines)