At least two senators heeded President Ferdinand “Bongbong” Marcos Jr.’s call for an end to system loss charges burdening electricity consumers.

Senate President Sherwin Gatchalian and Sen. Joseph Victor JV” Ejercito each filed a bill on the matter, saying it is imperative that Filipino families should not be forced to pay for electricity they never used.

In filing Senate Bill No. 2350, or the proposed System Loss Charge Abolition Act, Gatchalian said the measure seeks to provide consumers with immediate financial relief. 

“Amid the Philippines’ highest average electricity rates in Southeast Asia in June 2026, removing unjust system loss charges is a concrete step toward lowering power costs,” Gatchalian said.

For distribution utility Meralco, the system loss charge typically accounts for 5 to 6 percent of a consumer’s total electricity bill. 

Gatchalian noted that from August 2025 to July 2026, the average monthly system loss charge for a household consuming 200kWh was P148.95, which translates to P1,787.38 paid by each consumer over the past year for system loss charges alone, excluding the additional value added tax (VAT) imposed on top of it.

Ejercito, for his part, filed two measures, one that seeks the removal of system loss passed on to consumers (Senate Bill No. 2342) and the 12-percent VAT on electricity (Senate Bill 2343), also following President Marcos’ call. 

Ejercito said Congress must act immediately to ease the burden of Filipino families who are facing one of the highest electricity prices in Southeast Asia.

“Many of us are already suffering and burdened by high electricity bills, so we should eliminate charges that should not be passed on to consumers, and ensure that the power sector is more efficient,” Ejercito said.

“Consumers should only pay for the electricity they actually use and the services they receive. If you don’t use the electricity, you don’t have to pay,” the senator said in defending SB No. 2342 or the proposed Consumer Protection Against System Losses Act.

System loss is electricity lost in the transmission and distribution process due to technical losses and non-technical losses such as illegal connections and meter tampering. Currently, consumers can pass on portion of system los that falls within the limits set by the Energy Regulatory Commission (ERC).

Also, SB 2342 requires the ERC to amend its exiting policies within 90 days from the effective date of the law to remove system loss as a separate item in the electric bill. 

At the same time, Ejercito filed SB No. 2343 which seeks to eliminate the 12-percent VAT on electricity bills. 

“By eliminating the VAT on electricity, we will directly reduce the costs of families and businesses. The budget that will be saved can then be allocated to food, medicine, education and other basic needs,” he said.

Ejercito said it is important to ensure the immediate passage of these two bills to directly lower electricity bills and reduce the burden on consumers. 

On Monday, July 27, in his fifth State of the Nation Address (SONA), President Marcos called for the immediate amendment of the Electrict Power Industry Reform Act (EPIRA) to put an end to the practice of power distribution utilities to charge consumers for system losses, including the VAT imposed on these charges.