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Erwin Tulfo: System Loss Fee Is a Non-Recoverable Hidden Charge!

Senator Tulfo Fights for Fair Utility Bills: No More Hidden Charges!

In a powerful statement on Sunday, Senator Erwin Tulfo made it clear: electric companies will not be allowed to sneak in charges through hidden line items on consumers’ bills. As the chairperson of the Senate Committee on Energy, Tulfo has been at the forefront of a significant legislative change—the proposed Systems Loss Charge Removal Act or Senate Bill No. 2486.

But what exactly does this mean for you, the everyday consumer?

Let’s break it down. System loss refers to the electricity that’s lost during transmission and distribution. This loss can happen for many reasons, including technical inefficiencies or even illegal activities like the use of “jumpers” to steal electricity. And while you might think these losses should be covered by the companies, sadly, consumers have been shouldering these unnecessary costs for too long.

Senator Tulfo is unwavering in his commitment. “We have anticipated this loophole, and it is unacceptable,” he said fiercely. “We cannot remove system loss from one line of the electricity bill only to see the same cost transferred somewhere else.” His words resonate with the frustrations many consumers feel—why should you pay for electricity that you never even used?

In response to public concern, Tulfo made it a point to clarify that the bill specifically prohibits distribution utilities and electric cooperatives from recovering these losses through other charges like distribution wheeling fees, supply fees, or metering charges. “Consumers should not bear the financial burden of utility operational losses,” he emphasized.

The fight for fairer billing practices has also caught the attention of President Ferdinand Marcos Jr. During his fifth State of the Nation Address, he expressed support for amending the Electric Power Industry Reform Act (EPIRA). The aim? To stop power distributors from passing system loss charges and the accompanying value-added tax (VAT) onto consumers.

Under current laws, including EPIRA and the Anti-Pilferage of Electricity and Theft of Electric Transmission Lines/Materials Act, power distributors have been allowed to pass a portion of electricity lost during transmission onto consumers. But Tulfo and the government are taking action to change that.

This is a vital moment for consumers everywhere. No longer should you be burdened with hidden fees for services you never received. With Senator Tulfo leading the charge, the future looks brighter—and fairer—for all of us. Let’s keep advocating for transparency, accountability, and real change in our utility bills!

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