Meralco is appealing to the government to thoroughly study the impact of the proposed removal of the system loss charge on electricity rates.

In an official statement, Meralco said it respects the proposals and policy direction of President Ferdinand Marcos Jr. regarding plans to amend the Electric Power Industry Act (EPIRA).

However, the company explained the importance of the system loss charge in maintaining continuous and smooth operations within the proper supply distribution network.

“We believe it is important to recognize that system loss charge is not unique to any distribution utility but is a common operational aspect of the delivery of electricity — which affects the entire power industry,” according to Meralco

The power distributor added that while it continues to invest in modernizing and  upgrading technologies to minimize system loss charges, technical losses remain necessary to maintain ongoing operations.

“While distribution utilities like Meralco continue to invest in modernizing and upgrading facilities and deploying technologies that reduce system losses, a certain level of technical losses remains inherent in operating an electric distribution system,” Meralco said

To ensure genuine benefits for consumers, Meralco emphasized that it is necessary to consider the support and stability for distribution utilities.

The company expressed readiness to collaborate and engage in dialogue with the government on the issue to uphold consumer protection and to stabilize the power industry.