Lawmakers have introduced two measures aimed at reducing electricity costs by eliminating system loss charges and easing regulatory requirements for households and businesses that generate their own power.
Speaker Bojie Dy and Representative Ferdinand A. Marcos filed House Bills No. 10430 and No. 10431 following the president’s State of the Nation Address, which highlighted high electricity prices as a national priority.
House Bill No. 10430, titled the System Loss Charge Abolition Act, bars distribution utilities from passing on consumer costs for losses caused by theft, faulty meters, poor maintenance, and other avoidable factors. The Energy Regulatory Commission will determine the portion of consumption that can be recovered as part of the distribution wheeling charge and set minimum operational efficiency standards for utilities.
The bill allows a three‑year transition period, enabling utilities to adjust while still covering prudent operating expenses necessary for reliable service.
House Bill No. 10431, the Sariling Kuryente Act, seeks to amend the Electric Power Industry Reform Act to exempt households and businesses that generate electricity solely for their own use from the regulations that apply to commercial power producers.
Under the proposal, owners of behind‑the‑meter solar panels, battery storage systems, and certified non‑export generation equipment would not need ERC compliance certificates or prior authorization. Utilities would be prohibited from imposing additional approvals, technical studies, or extra charges on qualified non‑exporting systems, requiring only a notification after installation.
The Department of Energy will promote broader adoption of behind‑the‑meter generation by improving access to financing, qualified installers, and reliable equipment, while the ERC will issue implementing rules within 90 days.
Senate Energy Committee Chairman Erwin Tulfo has called for the removal of system loss charges and urged power companies to collaborate with Congress in reforms that lower electricity costs, citing the social responsibility of utilities to consumers.
Multiple Senate bills have been filed to abolish system loss charges, exempt them from value‑added tax, repeal energy taxes, and amend the Electric Power Industry Reform Act to further reduce electricity rates.
