Electricity prices in the Philippines will not drop meaningfully unless policymakers tackle costly power supply agreements, not just line-loss charges on bills, according to a Rappler report published Wednesday.
The report argues that focusing only on the "system loss" component of monthly bills misses a larger problem: long-term power contracts that lock in high generation costs. Rappler says these agreements are a primary driver of expensive electricity for consumers.
The report comes as lawmakers and regulators debate changes to the electricity market. Several outlets covered related proposals this week. The Philippine News Agency reported that producers and manufacturers support amending the Electric Power Industry Reform Act (EPIRA). The Inquirer noted that some lawmakers want to remove the value-added tax on the system loss charge. ABS-CBN reported that the Department of Energy and the Energy Regulatory Commission favor a phased removal of the non-technical system loss charge from bills.
BusinessWorld Online separately warned about the real cost of mishandling system loss, which refers to power lost during transmission and distribution.
Rappler’s position is that these fee-level tweaks are welcome but insufficient. The deeper issue, the outlet says, is the structure of power supply contracts signed by distribution utilities and other buyers. Without renegotiating or restructuring those deals, consumers will continue to pay high rates even if smaller charges are trimmed.
The debate is likely to intensify as Congress weighs EPIRA amendments. Watch whether lawmakers focus on contract reform or limit changes to billing adjustments.
