Pilferage in a distribution utility means the theft, unauthorized use, or illegal tapping of a utility service which results in losses for the provider. Tia said any amount collected from systems loss out of pilferage is not retained by Davao Light but is remitted to the appropriate agencies and eventually returned to consumers through rate reduction. In a follow-up question, councilor Louie John Bonguyan, committee chair on Energy, asked about the system’s loss cap set by the Energy Regulatory Commission (ERC). Tia said the ERC has progressively lowered the cap over the years, recognizing that systems loss is an “inherent technical characteristic of power distribution from generation to end users. Tia said DLPC’s systems loss has stayed slightly above 5 percent but below the 5.5-percent cap over the past 12 months.