Rep. Arthur Yap of the Murang Kuryente Partylist has filed two bills before the House of Representatives aimed at easing the financial burden on electric consumers, he said in a radio interview over DYTR with host Ardy Araneta Batoy.
Yap said one bill addresses so-called “pass-through charges” reflected line by line in electric bills, which he argued should be shouldered by the national government rather than passed on to consumers.
He cited the National Electrification Administration’s electrification of remote areas as an example, saying the subsidy for extending power to isolated islands and far-flung municipalities is currently funded through charges on ordinary consumers’ bills rather than the national budget.
According to Yap, residents in hard-to-reach areas pay around 5 to 7 pesos per kilowatt-hour, while the actual cost of producing electricity in those areas ranges from 20 to 25 pesos.
He said the gap, known as the universal charge for missionary electrification, is billed to all consumers nationwide — including senior citizens and beneficiaries of the government’s conditional cash transfer program — without their knowledge or consent.
The second bill seeks to remove systems loss charges from consumer bills.
Yap explained that systems loss refers to electricity that is generated but never reaches or is never consumed by the customer, occurring as power travels from generation plants through National Grid Corporation of the Philippines transmission lines and then through distribution utilities such as Bohol Electric Cooperatives I and II.
He said the loss, typically 5 to 8 percent, stems from both technical inefficiencies and electricity theft, such as illegal jumper cables, yet consumers are still billed for it — with a tax levied on top.
Yap said removing the tax on systems loss and eliminating the charge altogether would pressure electric distribution companies to address inefficiencies, rather than simply passing the cost on to customers who have no incentive to hold them accountable.
He said that if President Ferdinand Marcos Jr. is serious about lowering electricity costs, government must review all pass-through charges and taxes currently shouldered by consumers.
Beyond billing reforms, Yap also called for improvements in power generation, saying the country needs a more independent and diversified means of generating electricity to reduce dependence on imported fuel for its power plants.
Yap described the country’s electricity situation as a case of total policy failure, pointing to the continued occurrence of rotating brownouts as proof.
He said the impact extends beyond electric bills, affecting manufacturing, food security, micro and small businesses, and nearly every sector of the economy.
Yap also welcomed President Marcos’ remarks during his State of the Nation Address asking Congress to support amendments to the Electric Power Industry Reform Act, including the President’s acknowledgment that the systems loss charge is unfair to consumers.