Utility companies should devise policies to avoid system losses, or else shoulder the corresponding charges, the Palace said on Wednesday.

“Ang nais lamang po ng Pangulo ay tiyakin din ng mga utility companies na mayroon silang isinasagawang plano at pagmo-monitor para maiwasan po itong losses na ito, lalong-lalo na po iyong mga losses because of theft, pilferage na napapasan ng mga maaayos at mga matitinong mga Pilipino na nagbabayad ng kanilang mga obligasyon,” Palace Press Officer Claire Castro said.

The statement comes in response to concerns that electric cooperatives may suffer financial losses that may eventually lead to bankruptcy.

Castro said power companies must find a way to efficiently prevent such losses so as to avoid covering the surcharge.

She assured, however, that the move is under review, as the President does not wish for the reform to negatively impact utility companies.

During his State of the Nation Address (SONA) on Monday, President Ferdinand Marcos Jr. announced that the government is working to eliminate system loss charges by bolstering the country’s power infrastructure and energy capacity.

“Sa aking palagay, panahon na para tanggalin na natin ang systems loss na pinapasa sa consumer,” he said.

The Energy Regulatory Commission (ERC) backed the move, affirming its support for reforms that prioritize consumer welfare and acknowledging the importance of pursuing measures to reduce unnecessary costs.

“As the country’s independent electric power industry regulator, the ERC stands ready to work closely with Congress, the Department of Energy (DOE), industry stakeholders, and other concerned government agencies in advancing the legal and regulatory measures necessary to advance this reform,” it said in a Tuesday statement.