The Energy Regulatory Commission (ERC) said Wednesday that system loss is a technical and unavoidable part of electricity distribution, stressing that it is not unique to the Philippines but a reality rooted in the principles of physics.

Speaking in an interview on DZRH’s “Magandang Umaga Pilipinas,” ERC Chairperson Atty. Francis Juan explained that system loss refers to the portion of electricity that dissipates as power flows through transmission and distribution lines.

Despite being “lost” during power delivery, he said distribution utilities are still required to pay for the full amount of electricity supplied by generation companies and the National Grid Corporation of the Philippines (NGCP).

Juan said the charges collected from consumers for system loss are used to cover these costs, noting that similar mechanisms exist in other countries where power loss during transmission is likewise factored into electricity pricing.

Watch the ERC interview clip below:

Watch the full video interview below: