MANDAUE CITY, Cebu – A local consumer group is urging the Energy Regulatory Commission (ERC) and the national government to review the system loss cap imposed on power distributors, proposing a uniform 5.5-percent cap for both private distribution utilities and electric cooperatives. The group argues that the current sliding scale, which allows higher caps for smaller utilities, places an unfair burden on consumers.
The proposal comes amid rising electricity rates in the region. The consumer group, whose name was not specified in the source article, claims that a uniform cap would lead to more equitable charges and reduce the financial strain on households and businesses. They have submitted their recommendation to the ERC, which is currently reviewing distribution charges for the next regulatory period.
System loss refers to the difference between the energy purchased and the energy actually delivered to consumers, caused by technical factors like line resistance and non-technical factors such as theft. Under current rules, private distribution utilities are allowed a maximum system loss of 8.5 percent, while electric cooperatives may be allowed up to 14 percent, depending on their size and performance.
The ERC has not yet issued a formal response to the proposal. However, the commission has previously stated that any changes to the system loss cap would require a thorough review to balance consumer protection with the financial viability of utilities. The consumer group hopes that a decision will be made before the end of the year.
