The Philippine Chamber of Commerce and Industry (PCCI) has endorsed the government's move to eliminate system loss charges and associated value-added taxes from consumer electricity bills, while cautioning that the policy shift must be accompanied by deeper structural reforms.
The chamber’s stance highlights a critical juncture for the Philippine power sector, where immediate cost relief for consumers and businesses clashes with the financial sustainability of distribution utilities.
The removal of system loss charges aims to lower power costs for end-users, a significant relief given that grid inefficiencies have long been a major cost driver.
However, the PCCI’s conditional support signals that the business community views the charge removal as a first step rather than a complete solution.
Without parallel measures to improve grid efficiency and address the root causes of energy loss, the financial burden on distributors could intensify.
This development follows stark warnings from industry leaders, including Pangilinan, who have previously cautioned that forcing distributors to absorb system losses rather than passing them on to consumers poses an existential risk to the power industry.