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Caution urged on scrapping system loss charge
['Brix Lelis']
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Caution urged on scrapping system loss chargeLinemen install new transformers on an electric post along United Nations Avenue in Manila in this file photo from March.
In the Meralco franchise area comprising Metro Manila and nearby provinces, system loss typically accounts for around five percent of consumers’ power bills.
ERC chairman and CEO Francis Saturnino Juan said Congress should first amend Section 43(f) of EPIRA before system loss charges can be removed from electricity bills.
“Under this provision, the ERC cannot just unilaterally do away with the recovery and imposition of the system loss charge,” Juan told The STAR yesterday.
“Technical system loss is a natural and unavoidable part of delivering electricity to far-flung areas, where ECs often provide service.