Meralco says system loss is a normal part of power delivery

Meralco responds to President Marcos Jr.'s call to scrap system loss charges.

File photo: Meralco logo

Not unique to any utility

Meralco, in a statement, described system loss as a standard part of electricity delivery, rather than a problem specific to any one distribution utility.

While DUs like Meralco continue to invest in modernizing and upgrading facilities and deploying technologies that reduce system losses, a certain level of technical losses remains inherent in operating an electric distribution system, Meralco Executive Vice President and Chief Operating Officer Ronnie Aperocho said, as quoted by The Philippine Star.

In his fifth State of the Nation Address, President Bongbong Marcos has pushed for the immediate amendment of the Electric Power Industry Reform Act (EPIRA) of 2001 to prohibit passing on system loss charges to electricity consumers, including the corresponding value-added tax.

Aperocho said the company welcomes the president's policy direction and is open to joining discussions on proposed changes to the law.

For Meralco's part, we have consistently invested in system loss management initiatives, network modernization, and operational efficiencies, which enable us to maintain our system loss well below the 6.5 percent cap set by the ERC, Aperocho said.

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Via: The Philippine Star