Removing system loss charges won’t solve high power costs

Consumer think tank urges review of other costs passed on to consumers.

Removing system loss charges from electricity bills may ease some pressure on consumers, but it is not a shortcut to cheaper power, according to CONSUMA PH, a consumer rights think tank.

The group said the government’s move should be followed by a wider review of the different costs built into electricity bills to ensure that savings are not simply offset by higher charges elsewhere.

CONSUMA PH warned that system loss charges must not simply be moved to another part of the bill and eventually passed back to households and businesses. System losses occur across the power supply chain, including from technical limitations, aging infrastructure, poor maintenance, and electricity theft, making it important to determine which costs should be shouldered by consumers and which should be addressed by industry players.

Aside from system losses, other electricity bill components such as VAT and renewable energy subsidies also deserve closer scrutiny. CONSUMA PH said every charge passed on to consumers should be reviewed to determine if it remains fair, transparent, and necessary under current market conditions.

With power costs affecting family budgets and business operations, the group said the government’s directive should serve as a starting point for deeper reforms that improve efficiency, strengthen accountability, and help bring down electricity costs in a sustainable way.

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