A joint task force composed of representatives from energy agencies and electric cooperatives has been established to develop a plan for removing system loss charges from electricity bills.
The Department of Energy will lead the task force, which also includes the Energy Regulatory Commission, the National Electrification Administration, and various electric cooperatives.
The initiative follows a presidential call to eliminate system loss charges and the associated value‑added tax from consumer electricity bills during the recent State of the Nation Address.
The task force is tasked with assessing the technical, regulatory, and legislative actions required to implement the proposed reforms.
Its core mandate focuses on protecting consumer interests, enhancing operational efficiencies, and strengthening the long‑term reliability of the power sector.
System loss charges represent a portion of generation and transmission costs that cover electricity losses caused by technical factors and non‑technical issues such as illegal connections.
Existing legislation permits the recovery of these losses from consumers, subject to caps that the regulatory commission sets based on technical considerations.
The task force’s technical recommendations will guide both chambers of Congress in drafting legislation aimed at a more affordable, reliable, and resilient energy sector.
Beyond legislative changes, the group will pursue measures to reduce system losses at the source through improved operational practices, stricter enforcement against electricity theft, and modernization of distribution networks.
The Department of Energy and the regulatory commission have begun discussions with the country’s largest private electric distributor to evaluate its pricing structure and pursue fairer electricity bills for consumers.
The distributor has expressed a commitment to explore operational adjustments that could lower electricity prices and lessen the financial burden on households and businesses.
Collaboration with the National Electrification Administration will also assess how the proposed reforms may affect electric cooperatives and other distribution utilities.
