Marcos Pushes Power Bill Relief, Nuclear Comeback In Sweeping Energy Agenda
- July 29, 2026
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President Ferdinand Marcos Jr. used his fifth State of the Nation Address (SONA) to unveil a broad energy agenda aimed at lowering electricity costs, calling for the removal of system loss charges from consumers’ power bills, amendments to the Electric Power Industry Reform Act (EPIRA), and a renewed push for nuclear energy alongside nearly 200 power projects nationwide.
Addressing a joint session of Congress on Monday, Marcos said consumers should no longer shoulder system loss charges, arguing that electricity users should not pay for power losses caused by technical inefficiencies or electricity theft.
“Panahon na para tanggalin na natin ang systems loss na pinapasa sa konsyumer,” the President said, drawing applause from lawmakers. (“It is time to remove the system loss charges being passed on to consumers.”)
Reforming Electricity Charges
System loss charges cover electricity lost due to technical factors such as heat dissipated in transmission lines and transformers, as well as non-technical losses like pilferage. These charges are currently passed on to consumers and are also subject to value-added tax.
“Pinapasa ito sa konsyumer at kinakarga sa bill na pinapatungan pa ng value-added tax. Hindi naman kasalanan ng konsyumer kung bakit nagkaroon ng systems loss. Kaya hindi naman tama na kailangan sila pa ang pagbabayarin dito,” Marcos said. (“These are passed on to consumers and added to their electricity bills, which are even subject to value-added tax. It is not the consumers’ fault that system losses occur, so it is not right that they should have to pay for them.”)
The President urged Congress to amend the EPIRA, the landmark 2001 law that restructured the country’s power industry, to prohibit distribution utilities from passing system loss charges on to consumers.
EPIRA was enacted to promote competition and lower electricity prices, but it has faced criticism over the years for allegedly failing to deliver more affordable power. A 2018 study by the Philippine Institute for Development Studies noted that the law had drawn calls for major revisions or even repeal because of its perceived shortcomings.
The Department of Energy (DOE) immediately expressed support for the proposed amendments, saying the country’s legal and regulatory framework must evolve alongside advances in technology and changes in the energy sector.
“The time has come to ensure that our legal and regulatory framework keeps up with today’s realities,” the DOE said, adding that it would work with Congress, the Energy Regulatory Commission (ERC), industry stakeholders and consumer groups to implement the President’s directives.
Consumer Groups And Lawmakers Welcome Proposal
Bicol Saro Party-list Rep. Terry Ridon, a member of the House Committee on Energy, welcomed Marcos’ proposal and urged lawmakers to swiftly pass legislation barring distribution utilities from recovering system losses through electricity bills.
He also called on the ERC to tighten existing regulations by disallowing recoveries arising from inefficiency, poor system maintenance, electricity theft, and other preventable causes while imposing stricter accountability standards on utilities.
Using a system loss charge of ₱0.7413 per kilowatt-hour as an example, Ridon estimated that a household consuming 200 kWh monthly could save about ₱148.26 if the charge were completely removed.
Power distributor Meralco has previously explained that the system loss charge forms part of generation and transmission costs paid to generation companies and the National Grid Corporation of the Philippines, while noting that several charges reflected in electricity bills are mandated by government regulations.
The administration has also taken other steps affecting electricity charges. In May, the ERC suspended the collection of the Green Energy Auction Allowance (GEA-All), a charge used to support renewable energy projects such as solar, wind and hydroelectric facilities. The suspension, initially covering the May and June billing periods, has since been extended until August.
Expanding Clean And Reliable Energy
Beyond electricity pricing reforms, Marcos also sought congressional support for the proposed “Sariling Kuryente” Act, which aims to simplify and make more affordable the installation of rooftop solar panels and battery storage systems for households.
The President likewise highlighted the government’s broader efforts to strengthen the country’s energy supply through a pipeline of nearly 200 power projects with a combined capacity of almost 10,000 megawatts (MW).
According to Marcos, 45 projects have already been completed, while another 31 are expected to be finished within the year. The remaining 124 projects are targeted for completion by 2028.
These developments, he said, will be complemented by energy storage projects capable of contributing an additional 1,700 MW, helping improve the reliability and resilience of the country’s power system.
Marcos attributed the faster rollout of energy projects to reforms that streamlined business processes and encouraged both local and foreign investment.
Nuclear Power Back On The Agenda
The President also revived discussions on nuclear energy, saying it may be time for the Philippines to consider nuclear power generation as part of its long-term energy strategy, expressing confidence that it could strengthen the country’s energy security while helping reduce electricity costs.
He assured the public that any move toward nuclear power would prioritize safety and public awareness.
“Titiyakin nating ito ay ligtas. Titiyakin din nating maipaliwanag nang mabuti sa publiko ang magandang dulot sa atin ng enerhiyang nukleyar,” he said. (“We will ensure that it is safe. We will also make sure the public fully understands the benefits that nuclear energy can bring to us.”)
The DOE has previously identified several possible sites for future nuclear power plants, including Bataan, Labrador in Pangasinan, Camarines Norte, Puerto Princesa in Palawan and Masbate. The agency is targeting the country’s first commercially operational nuclear power plants by 2032, initially contributing at least 1,200 MW to the power mix before expanding to 4,800 MW by 2050.
The administration has also laid the groundwork for the program by creating an independent agency tasked with regulating the safe use of nuclear energy and radiation sources.
Source:
https://newsinfo.inquirer.net/2271668/marcos-wants-system-loss-charges-scrapped
