DOE To Change Rules To Lower Power Bill
Lower Power Bill – The Department Of Energy (DOE) now considered the possibility of removing payment of system loss charges that burdens consumers in their power bills.
According to DOE spokesperson Pete Ilagan as reported by PhilStar, the legal team of the DOE will study the matter in order to remove system loss charges in electric bills.
Ilagan said that the decision to make the study was because of the reports DOE had received that some distribution utilities (DUs) ‘have system loss going beyond’ the limit set by the Energy Regulatory Commission (ERC).
“…why should the burden of system loss be passed on to consumers when it can be shouldered by utilities, which is a common practice in other countries,” Ilagan quoted DOE Secretary Alfonso Cusi.
This passing of charges to consumers is allowed under Republic Act 7832 (Anti-Electricity and Electric Transmission Lines/Materials Pilferage Act of 1994).
According to PhilStar, system loss is the unbilled power caused by pilferage and physical loss of energy when electricity passes through distribution lines.
The system loss cap set by the ERC is 9.5 percent for private DUs and 13 percent for electric cooperatives (EC). These system loss can be passed on to consumers in their monthly bill.
To add, Ilagan said that the said study will identify if the system loss cap is being followed by power distributors.
According to a data from the National Electrification Administration (NEA), there are about 89 ECs who met the system loss cap set by ERC last year, 2015.
Having a lower system loss charge would also mean lower electricity bill for the consumers.
The largest power distributor in the Philippines, MERALCO, said through spokesman Joe Zaldarriaga that the company will do everything to lower the system loss levels to benefit their consumers more.
Currently, MERALCO has a system loss of 6.46 percent.
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