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IIEE calls for engineering-based reforms on system loss charges
['Jao Malapo']
BusinessWorld Online
The Institute of Integrated Electrical Engineers of the Philippines (IIEE) has called for engineering-based reforms on system loss charges, saying the ongoing review of the Electric Power Industry Reform Act (EPIRA) presents an opportunity to strengthen the country’s power sector while protecting consumers.
The organization emphasized that technical system losses are an inherent characteristic of electricity delivery and should not be treated the same as avoidable operational inefficiencies.
“Technical system losses are an inherent part of any electric power system and cannot be eliminated,” the IIEE said.
According to the IIEE, reforms on system loss recovery should clearly distinguish between unavoidable engineering losses and avoidable operational inefficiencies, while balancing consumer protection, utility sustainability and long-term grid modernization.
Further, it said recoverable system losses should continue to be determined using engineering and economic principles.