Senator Francis “Chiz” Escudero has filed Senate Bill No. 2345 in a bid to prohibit the recovery of system loss charges from electricity consumers by amending existing laws and make electricity more affordable for Filipino households.
Filed on July 28, a day after the State Of The Nation Address (SONA) of President Ferdinand R. Marcos Jr., the measure amends Republic Act No. 9136, or the Electric Power Industry Reform Act of 2001 (EPIRA), which currently allows distribution utilities to recover a portion of system losses incurred in the delivery of electricity.
Escudero said the continued imposition of these charges “has become increasingly difficult to justify,” noting that consumers “neither control nor contribute to the technical condition of the grid, nor are responsible for losses arising from inefficient operations, outdated infrastructure or electricity theft.”
Under the proposed amendment, distribution utilities will no longer be allowed to pass on costs arising from technical inefficiencies or electricity pilferage to end‑users.
“Consumers should pay only for the electricity they actually consume,” Escudero emphasized in his explanatory note, adding that the bill “promotes fairness in electricity pricing, encourages greater operational efficiency among distribution utilities, strengthens consumer protection, and contributes to the broader objective of making electricity more affordable for every Filipino.”
The senator explained that the existing policy under EPIRA was originally adopted to recognize the operational realities of electricity distribution, where system losses may arise from technical factors inherent in power transmission and distribution, as well as from non‑technical causes such as electricity pilferage and unauthorized use.
“This bill is founded on the principle that consumers should pay only for the electricity they actually consume,” he wrote.
He added that the measure seeks to instill accountability among power distributors by ensuring that inefficiencies and losses are absorbed by the utilities themselves, not by the public.
“In so doing, it promotes fairness in electricity pricing and encourages greater operational efficiency,” Escudero said.
The senator expressed confidence that the proposed reform will complement the government’s broader energy agenda, which includes lowering power rates and improving regulatory oversight.