The Power for People Coalition on Thursday challenged the Manila Electric Company to absorb system loss costs, saying electricity consumers should not be charged for power they never receive.
The coalition issued the statement after Meralco Chairman and Chief Executive Officer Manuel V. Pangilinan questioned who would bear the costs if system loss charges were removed. Pangilinan said Wednesday that the industry “will not survive” if power companies were required to pay them.
President Marcos called for the removal of system loss charges during his State of the Nation Address.
Gerry Arances, convenor of the coalition, said system losses should be treated as part of a power company’s operating expenses.
“Every business absorbs their cost of doing business,” Arances said, noting that restaurants do not charge customers for spoiled food and delivery companies do not bill clients for damaged cargo.
“Why should electricity consumers be forced to pay for power they never received? Why can’t Meralco pay for system loss?” he said.
Arances said electricity is an essential public service and consumers “should only be charged for the electricity that actually reaches their homes and businesses.”
He also accused Meralco of prioritizing its profits after passing system loss charges on to consumers for decades despite earning tens of billions in annual revenues.
“Refusing to part with a fraction of its earnings in the face of the SONA directive sends a clear message: protecting profits matters more than protecting consumers,” Arances said.
The coalition also criticized the cautious response of the Department of Energy and the Energy Regulatory Commission, saying their hesitation exposed serious problems in the law governing the power industry.
Arances accused the agencies of “scrambling to soften the blow for Meralco and other private players” by saying that the proposal remained under study.
“If the government is truly serious about providing relief, then it should act with urgency instead of buying time while industry lobbyists negotiate behind closed doors,” he said.
Arances said every month of delay meant consumers would continue paying what the coalition considers unjust charges.
“We are only talking about 5.5% of the system loss charges, what more if we tackle other unjust and even bigger pass-through costs, such as in power generation?” he said.
