Gatchalian eyes year-end removal of power system-loss charges

PoliticsBusiness & Finance
4 Oct 2026 • 3:41 PM MYT
The Manila Times
The Manila Times

One of the longest-running English broadsheets in the Philippines

Gatchalian eyes year-end removal of power system-loss charges

MANILA, Philippines — Senate President Sherwin Gatchalian said Sunday he will push for the removal of system-loss charges from consumers’ electricity bills before the end of the year, even as the Senate faces a crowded schedule dominated by the 2027 national budget.

Gatchalian said the measure is in plenary and has undergone hearings and technical working group discussions on its potential impact on distribution utilities and electric cooperatives.

“We will try our best before the year ends,” Gatchalian said in an interview with DZBB radio.

“We will try to finish this system loss by the end of the year.”

Gatchalian said the proposal distinguishes between non-technical and technical system losses.

Non-technical losses, including electricity theft and losses caused by defective meters, should be absorbed by distribution utilities, he said.

“For example, those who use jumpers should be stopped, and electricity stolen should no longer be passed on to consumers,” Gatchalian said.

He said value-added tax (VAT) on system-loss charges would be removed under the proposed legislation.

The more difficult issue is technical losses, which occur naturally during the transmission and distribution of electricity, he said.

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