Philippines' power reform targets system loss charges

The DOE backs changes as consumers face costs linked to electricity losses.

The Philippines’ Department of Energy (DOE) has backed President Ferdinand R. Marcos Jr.’s call to amend the Electric Power Industry Reform Act (EPIRA), including reforms to how system loss charges are treated under the power sector framework.

DOE said the current rules should be updated to reflect changes in the industry, including advances in technology, smarter electricity networks, and new operational requirements.

“The time has come to ensure that our legal and regulatory framework keeps pace with today’s realities,” the department said in a statement on 27 July, 25 years after EPIRA was established.

Consumers should not continue bearing the cost of avoidable system losses that can be reduced through improved infrastructure, modern technologies, and stronger operational measures, it added.

“As utilities continue to modernise their networks through advanced metering systems, grid upgrades, digital technologies, and enhanced measures against electricity theft, system losses should steadily decline,” DOE said.

The department said lower system losses could allow efficiency gains to translate into savings for consumers, whilst improving power sector performance.

It added that EPIRA amendments must balance consumer protection, electricity affordability, and the financial stability of the industry.

“Legislative reforms must continue to encourage investments in modern infrastructure, improve operational efficiency, strengthen regulatory oversight, and promote greater accountability across the entire electricity value chain,” it said.

DOE said it will work with Congress, the Energy Regulatory Commission, industry stakeholders, and consumer groups on potential amendments to EPIRA.