NAVOTAS Rep. Toby Tiangco said Tuesday he would refile House Bill (HB) 942, a measure he introduced in 2016, which aims to remove systems loss charges from consumers’ electricity bills at the opening of the new Congress.
President Ferdinand Marcos Jr., in his fifth State of the Nation Address (SONA) on Monday, called for ending the practice.
Tiangco welcomed the president’s pronouncement, noting his bill seeks to prohibit private distribution utilities from passing system losses on to consumers, limit recoverable system losses of rural electric cooperatives to technical losses capped at 5 percent, and remove the VAT imposed on systems loss charges.
"I am pleased that this proposal is now clearly part of the president's legislative agenda,” Tiangco said.
“We have long maintained that it is unjust for ordinary consumers to shoulder the costs of losses and inefficiencies for which they bear no responsibility,” he added.
The lawmaker lamented how electricity prices in the Philippines are the second-highest in Southeast Asia.
Under HB 942, only rural electric cooperatives would be allowed to recover legitimate technical losses arising from the physical delivery of electricity, subject to verification by the Energy Regulatory Commission and the 5 percent ceiling. Private distribution utilities would no longer be allowed to recover systems loss charges from consumers.
Tiangco said the president’s policy direction provides renewed momentum for the measure, which did not advance when it was first filed nearly a decade ago.
The lawmaker expressed hope that the 20th Congress would support the proposal, saying the measure would provide immediate relief to consumers amid persistently high electricity prices.
Several other members of the House of Representatives have expressed support for the initiative, including Akbayan party-list Rep. Chel Diokno. Diokno urged power distribution firms to not wait for Congress to amend the law and to stop passing on systems loss charges to consumers.
Gabriela party-list Rep. Sarah Elago, meanwhile, said instead of merely removing systems loss charges, the Electric Power Industry Reform Act (Epira) must be scrapped altogether instead of just being amended.
"Amending a law that has long been proven to favor big corporations is simply not enough,” Elago said in a statement.
“What the Filipino people need is not cosmetic change but the repeal of Epira and the adoption of policies that recognize electricity as an essential public service, not a business for the benefit of a few," she added.
Bagong Henerasyon Rep. Robert Nazal called on Marcos to certify as urgent the priority legislative measures announced in his SONA, including income tax relief, tax incentives for micro, small and medium enterprises, the removal of electricity system loss charges, reforms to the Electric Power Industry Reform Act, amendments to the Ecological Solid Waste Management Act, expanded support for farmers, and alternative energy initiatives.
“Certifying these measures as urgent will demonstrate the administration’s commitment to delivering meaningful reforms while there is still sufficient time to make a real difference in the lives of the Filipino people,” Nazal said.
Meanwhile, BH Party-list chairman Bernadette Herrera urged the administration to immediately implement programs that only require executive action, including expanded PhilHealth benefits for children with developmental disabilities, faster access to developmental assessments and therapies, and measures to reduce delays in healthcare services.
At the Senate, Sen. Erwin Tulfo filed Senate Bill (SB) 2239, which seeks to repeal Batas Pambansa Blg. 36, or the Energy Tax Law, that imposes an energy tax on electric power consumption, and SB 2340, which proposes exempting system loss charges from the 12 percent VAT imposed on electricity bills.
He also filed Senate Resolution 537 directing an inquiry into the implementation of provisions under the Epira that allow system loss charges to be passed on to consumers. The proposed investigation seeks to determine whether existing policies remain fair and responsive to the interests of Filipino electricity users.
Sen. Joel Villanueva on Tuesday praised Marcos' SONA, saying it reflected the everyday concerns of Filipino families while recognizing key legislative reforms that have benefited workers, students, overseas Filipino workers, and other sectors.
In a related development, Executive Secretary Ralph Recto said the president's fifth SONA hit the right spots.
"That is what the SONA is. Reporting facts. Opening eyes. Surprising people, too," Recto said in a statement.
"His call is for everyone to dial down divisive politicking and ramp up work that will bring peace and progress to the entire nation," Recto added.
The Liberal Party (LP) of the Philippines praised Marcos' remarks on the country’s sovereignty over the West Philippine Sea.
“Regardless of political affiliation, the issue of the West Philippine Sea should never be a partisan matter. It is an issue that concerns all Filipinos. It is about our sovereignty, our territory, and our national dignity,” LP President Erin Tañada said in Filipino.
“That is why we welcome hearing directly from the president a clear commitment that the Philippines will fight for what rightfully belongs to us,” Tañada added.
