No rebranding, hiding system loss charge, Tulfo vows

MANILA, Philippines — Consumers will not see the controversial system loss charge simply rebranded and hidden in other sections of their monthly electricity bills as soon as a proposed legislation banning it becomes law, Sen. Erwin Tulfo assured the public yesterday.

Addressing fears that power distributors might offset the impending removal of the charge by quietly inflating other fees, Tulfo, chairman of the Senate energy committee, guaranteed that the proposed legislation contains strict safeguards against such practices.

“We have anticipated this loophole and it is unacceptable. We cannot remove systems loss from one line of the electricity bill only to see the same cost transferred somewhere else,” Tulfo said.

The senator sponsored Senate Bill No. 2486, or the proposed Systems Loss Charge Removal Act on the plenary floor last week, certified as a priority measure.

To prevent power companies from circumventing the ban, Tulfo explained that the bill specifically targets the exact billing components that utilities might attempt to exploit.

“This is why the bill we are shepherding now explicitly prohibits distribution utilities and electric cooperative from recovering allowed losses through distribution wheeling charges, supply charges, metering charges, universal charges, subsidies or any other item in the bill,” he noted.

“Why do consumers pay for electricity that they did not consume? Why do consumers bear the brunt of inefficiencies and deteriorating facilities resulting in systems loss?” Tulfo asked.

Pushing for the immediate passage of the measure, the senator emphasized that access to fair utility pricing is essential.

“Electricity is not a luxury. It is a basic necessity the modern society needs to operate with dignity,” Tulfo said.

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