Sen. Erwin Tulfo on Thursday called for the removal of charges related to non-technical system loss and value-added tax (VAT) from electricity bills, saying consumers should not bear costs stemming from power theft and illegal connections.
Tulfo stressed that losses from pilferage, including “jumper” connections, illegal metering and tampering, should no longer be passed on to the public, as these are not the fault of paying consumers.
“I would like to get your opinion, bakit hinayaan ninyo na singilin nang singilin ang taumbayan ng systems loss, doon na lang sa non-technical — yung pilferage, jumper, illegal connection,” Tulfo said during a Senate hearing.
“Bakit hinayaan ninyo ang mga distribution company na singilin kaming taumbayan na hindi naman namin kasalanan?”
He questioned regulators over what he described as years of inaction, noting that consumers have long been charged for system losses without being fully aware of the breakdown between technical and non-technical components.
Energy Regulatory Commission (ERC) Chairperson Francis Juan said the current policy on system loss caps is anchored on Republic Act 7832, or the Anti-Electricity and Electric Transmission Lines/Materials Pilferage Act of the 1990s.
He explained that the law allows recovery of certain system losses but sets limits to gradually reduce costs related to pilferage.
“Ang pagkakaroon natin ng systems loss cap ay nagsimula at nababatay sa anti-pilferage act noong 1990s pa,” Juan said. “This is a legitimate cost but subject to a limit.”
Juan added that the ERC is now studying whether the cap for non-technical losses could be reduced to zero, effectively preventing distribution utilities from recovering such costs from consumers.
Tulfo, however, urged immediate action, saying the Senate Committee on Energy is pushing to prioritize the removal of non-technical system loss charges, along with VAT, from electricity bills.
“Ito yung hinahanap natin ng committee na ito — siguro unahin na natin itong non-technical, mga pilferage, illegal metering, tampering, huwag na isingil sa mga kababayan natin pati yung VAT,” he said.
The proposal follows President Ferdinand “Bongbong” Marcos Jr.’s call during his fifth State of the Nation Address to amend existing energy laws to ease the burden of rising electricity costs on Filipino households.
