By Billy Begas
SAGIP party list representatives Rodante Marcoleta and Caroline Tanchay have jointly filed a bill to reduce system loss fees imposed on unfortunate electricity customers.
In the System Loss Limitation Bill (House Bill 160), lawmakers decided to reduce the recoverable rate of system losses to just 1%.
The current law, The Theft of Electricity and Transmission Materials/Lines Act 1994 (RA 7832), allows system losses to be recovered from consumers, capped at 14% for cooperatives. electricity and 9.5% for private electricity utilities.
System loss is electricity that dissipates during the distribution process due to natural causes or theft.
Normal system loss occurs when electricity travels a long distance from power plants to end users. The longer the distance, the higher the system loss will be.
“However, this normal loss is a fact recognized by electric utilities when they decided to venture into this area. Like any other business venture, normal losses are considered legitimate business risks,” the authors said in the explanatory note to the bill.
The lawmakers pointed out that “shifting too much of the burden of these system losses onto consumers is not only unfair, but also deters utilities from prioritizing quality and reliable service, knowing they can easily pass on charges on consumers”.
“Limiting the phasing out of system losses to a smaller cap will not significantly impoverish electric utilities, but will save the lives of the consuming public, especially poor and marginalized families who can barely meet their needs. dailies,” the lawmakers said. added.