House energy panel backs bill to strip system-loss charge from power bills

MANILA, Oct. 12, 2026 — The House Committee on Energy on Monday approved a substitute bill that would bar electricity distributors from charging consumers for non-technical system losses, such as pilferage and faulty meters.

The panel, chaired by Palawan Rep. Jose Alvarez, also adopted the related committee reports. The substitute measure consolidates proposals filed after President Ferdinand Marcos Jr. raised the issue in his State of the Nation Address; 43 House bills and two resolutions seek to end the practice of passing to consumers the cost of non-technical losses such as pilferage and faulty meters.

Among the consolidated bills is House Bill 10430, authored by Speaker Faustino Dy III and Majority Leader Ferdinand Alexander Marcos. They said the measure would give consumers real relief by shifting the charge to the entities that run the distribution network.

Cagayan de Oro Rep. Lordan Suan, author of HB 10299, argued that consumers should not pay for electricity they never use, the Philippine Daily Inquirer reported.

The official text of the substitute bill had not yet been released as of the committee vote, according to Politiko and Abante.

The committee also cleared a substitute version of the proposed Sariling Kuryente Act, which would simplify requirements for installing and operating non-commercial generation and storage systems such as rooftop solar with batteries. Proponents say current procedures discourage household adoption.

If enacted, both measures would amend the Electric Power Industry Reform Act of 2001 (Republic Act 9136). The bills still need plenary approval in the House and a counterpart measure in the Senate.

In the Senate, Senate President Sherwin Gatchalian said on Oct. 4 that a system-loss measure was already on the floor and that he would push for passage before year-end despite a calendar crowded by the 2027 budget, The Manila Times reported.

What it means for consumers

Nothing changes on bills yet. The system-loss charge remains a line item until a law is passed and implemented. Separately, the 12% VAT on the allowable system-loss charge was removed starting with October 2026 billing under ERC rules, which is a different and smaller change.