MANILA Electric Co. (Meralco) on Tuesday, July 28, 2026, expressed support for discussions on President Ferdinand Marcos Jr.'s proposal to stop passing system loss charges on to electricity consumers, saying it is ready to participate in deliberations on proposed amendments to the Electric Power Industry Reform Act (Epira).
The distribution utility issued the statement a day after Marcos urged Congress, during his fifth State of the Nation Address (Sona) on Monday, July 27, to amend the Epira to prohibit distribution utilities from charging consumers for system losses, arguing that households should not bear the cost of electricity lost before it reaches paying customers.
Meralco said it respects the administration's policy direction and is prepared to engage in legislative discussions on the proposed reforms.
The company stressed, however, that system loss is an inherent part of electricity distribution and is experienced by all distribution utilities, not just Meralco.
“While distribution utilities like Meralco continue to invest in modernizing and upgrading facilities and deploying technologies that reduce system losses, a certain level of technical losses remains inherent in operating an electric distribution system,” Meralco said in a statement.
Meralco said it has continued investing in modernization and operational efficiency programs that have allowed it to keep its system loss rate below the 6.5 percent ceiling set by the Energy Regulatory Commission (ERC).
The utility added that any reforms should strike a balance between providing relief to consumers and ensuring distribution utilities and electric cooperatives remain financially capable of maintaining infrastructure, improving system resilience, and delivering reliable electricity service.
“Meralco will continue working closely with the government, regulators, legislators, and other industry stakeholders in pursuing reforms that enhance consumer protection and strengthen the power industry,” the firm added.
The ERC, for its part, welcomed the President's call, saying it supports policy reforms that prioritize consumer welfare while maintaining the viability of power distribution utilities.
In a statement, the regulator said it is prepared to work with Congress, the Department of Energy, and industry stakeholders in crafting the legal and regulatory measures needed to implement the proposed changes.
The commission said reducing unnecessary costs for consumers should go hand in hand with preserving the reliability, affordability, and sustainability of electricity services nationwide.
Under the Epira, consumers pay a system loss charge, which covers electricity purchased by distribution utilities but not billed due to technical losses during transmission and distribution, as well as allowable non-technical losses such as electricity theft.
The charge also forms part of the taxable components of monthly power bills.
During his Sona, Marcos said consumers should no longer shoulder these costs, emphasizing that they are not responsible for the losses incurred in the distribution system.
He also urged lawmakers to immediately amend the Epira to prohibit the collection of system loss charges, including the value-added tax imposed on them.
The President likewise renewed his appeal for Congress to pass the proposed "Sariling Kuryente" Act, which seeks to make rooftop solar panels and battery storage systems more accessible to households as part of the administration's broader push to lower electricity costs and strengthen the country's long-term energy security. (TPM/SunStar Philippines)