Power bills May drop as system loss charge ends

LINAMON, Lanao del Norte – Consumers in Lanao del Norte welcomed President Ferdinand Marcos Jr.'s proposal to remove the system loss charge from electricity bills, saying the move could ease the burden of rising household expenses if it becomes law.

Ronnie Bomendiano, a former overseas Filipino worker and a customer of the Lanao del Norte Electric Cooperative Inc. (LANECO), said removing the charge would provide meaningful monthly savings for families like his.

Bomendiano said his household and sari-sari store pay a combined electricity bill of about P3,500 a month. He estimated that if the proposal reduces his bill by around P500, it would be a significant help.

"Kung madayon ug makuhaan bisan og P500 matag bulan, maayong savings na kaayo para sa amo," he said.

Iligan City Councilor Marlene Young, chair of the City Council's Committee on Energy, said the proposal offers hope but cautioned that the public should wait until it is implemented.

"The removal of system loss charges is a breath of fresh air if it will materialize," Young said.

Kauswagan Vice Mayor Rommel Arnado said reforms should go beyond removing system loss charges.

He urged the government to also reduce transmission charges imposed by the National Grid Corporation of the Philippines (NGCP) and review other costs, including standby charges for power barges that are no longer in use.

Iligan City Mayor Frederick W. Siao said affordable electricity is vital for Filipino families, businesses and local economies.

"Electricity is not a luxury—it is an essential service that every Filipino family and every business depends on," Siao said.

He said Congress should carefully review whether consumers should continue paying for system losses and related charges, stressing that every peso collected from consumers must be fair, transparent and justified.

Siao also backed a comprehensive review of the Electric Power Industry Reform Act (EPIRA) to ensure energy policies remain responsive to current realities while balancing consumer protection, power sector efficiency and the industry's financial sustainability.

He added that lower electricity costs could help cities like Iligan attract more investments, create jobs and improve residents' quality of life.

During his fifth State of the Nation Address on Monday, President Ferdinand R. Marcos Jr. called for the removal of system loss charges from consumers' electricity bills and pushed for amendments to the EPIRA as part of broader power sector reforms. (Richel Umil, Correspondent)