Senator Francis Joseph “Chiz” G. Escudero introduced a bill that would prevent electricity companies from charging customers for system losses. The measure targets fees that arise from energy losses in the transmission and distribution network.
The proposed No System Loss Charge Act, designated Senate Bill No. 2345, would ban the recovery of system loss fees, forbid reclassification under other names, and prohibit other charges designed to bypass the ban.
The bill provides a six‑month transition period for utilities and instructs the Energy Regulatory Commission to amend its rate‑setting guidelines accordingly.
The legislation seeks to foster fair pricing, boost operational efficiency within distribution utilities, and make electricity more affordable for consumers.
If enacted, the measure would reshape how distribution utilities account for and recover costs, potentially reducing hidden fees on household bills.
