Senate President Win Gatchalian has filed a bill seeking to end system loss charges passed on to electricity consumers. In a statement, Gatchalian said that Filipino families should not be forced to pay for electricity they never used.

The measure comes on the heels of President Bongbong Marcos’ State of the Nation Address, where he called for the immediate amendment of the Electric Power Industry Reform Act (EPIRA) to stop charging consumers for system losses, including the value-added tax (VAT) imposed on these charges.

Senate Bill 2350, or the System Loss Charge Abolition Act, seeks to provide consumers with immediate financial relief.

“Amid the Philippines’ highest average electricity rates in Southeast Asia in June 2026, removing unjust system loss charges is a concrete step toward lowering power costs,” Gatchalian said.

For distribution utility Meralco, the system loss charge typically accounts for 5% to 6% of a consumer’s total electricity bill. Gatchalian noted that from August 2025 to July 2026, the average monthly system loss charge for a household consuming 200 kWh was P148.95. This translates to P1,787.38 paid by each consumer over the past year for system loss charges alone, excluding the additional VAT imposed on top of it. 

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