Metro Manila, Philippines – Malacañang said there is no plan yet to subsidize electric cooperatives or distribution utilities as President Ferdinand Marcos Jr. pushes to remove the system loss charge from consumers’ electricity bills.
The clarification came after the Philippine Rural Electric Cooperatives Association warned that removing the charge without government support could result in financial losses for electric cooperatives and even lead to bankruptcies.
During a Palace briefing on Wednesday, July 29, Communications Undersecretary Claire Castro said the administration’s priority is to spare consumers from paying for electricity losses caused by inefficiencies and power theft.
“Ang gusto po ng pangulo ay matanggal itong extra cost sa ating mga kababayan, hindi naman para pasanin ang burden na ito ng mga consumers pati naman po ng mga utility companies,” she said.
[Translation: The president wants to remove this extra cost from our fellow Filipinos. The goal is not for either consumers or utility companies to bear the burden.]
Instead, Castro said utility companies should strengthen measures to reduce system losses, particularly those caused by electricity theft and pilferage.
“Ang nais lamang po ng Pangulo ay tiyakin din ng mga utility companies na mayroon silang isinasagawang plano at pagmo-monitor para maiwasan po itong losses na ito, lalong-lalo na po iyong mga losses because of theft, pilferage na napapasan ng mga maaayos at mga matitinong mga Pilipino na nagbabayad ng kanilang mga obligasyon.“
[Translation: The president wants utility companies to have plans and monitoring systems to prevent these losses, especially those caused by theft and pilferage that are ultimately shouldered by law-abiding Filipinos who pay their bills.]
Castro said no such proposal is currently being discussed on whether the government was considering subsidies for electric cooperatives.
“Sa pagsa-subsidize, hindi siya napag-uusapan. Ang kinakailangan din pag-aralan ng utility companies kung papaano nila maiiwasan na magkaroon ng losses,” she said.
[Translation: Subsidies are not being discussed. What utility companies need to study is how they can prevent losses.]
Castro said the proposal to remove the system loss charge remains under study to ensure it will not adversely affect utility companies.
