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The real cost of mishandling system loss
['Victor Andres C. Manhit']
BusinessWorld Online
The question now is, will striking out systems loss from consumers’ bills truly benefit the people in the long run?
According to regulators and industry players who testified during the recent Senate hearings, system loss in energy distribution generally falls into two categories: technical and non-technical.
Distribution utilities should recover only system loss costs that are necessary, prudent, and approved by the regulator.
There has to be a way forward, but it should begin with the real sources of high electricity bills.
Generation charges, imported fuel prices, exchange rate movements, and taxes weigh far more heavily on consumers than transparency on system loss.