DOE eyes P7-B plan to address electricity losses

Power lines in parts of Metro Manila in this undated photo. The Department of Energy on Monday, Aug. 24, 2026, said around P7 billion is being considered to fund measures to address system losses, in line with the Marcos administration’s bid to remove charges from electricity not used by consumers. PNA FILE PHOTO
Power lines in parts of Metro Manila in this undated photo. The Department of Energy on Monday, Aug. 24, 2026, said around P7 billion is being considered to fund measures to address system losses, in line with the Marcos administration’s bid to remove charges from electricity not used by consumers. PNA FILE PHOTO

THE GOVERNMENT aims to address electricity losses reflected in consumers’ bills through a four-phased approach needing approximately P7 billion.

Energy Secretary Sharon Garin, in an online briefing on August 24, said they are also proposing the increase of the anti-pilferage penalty from P5,000 to P50,000 to deter crimes that disadvantage power consumers.

“We are also working with the PNP (Philippine National Police) as well as DILG (Department of the Interior and Local Government) and LGUs (local government units), and the electric cooperatives to campaign and enforce the anti-pilferage measures that we have. As part of this effort, we are calling on the public to report suspected electricity theft and electrical safety hazards through the E-GovPH platform,” she said.

These measures are in line with President Ferdinand R. Marcos Jr.’s State of the Nation Address (SONA) commitment to address system losses and the removal of the value-added tax (VAT) on system loss charges.

Garin said they are meeting with all stakeholders to address the issue, which involves removing factors that result in loss of electricity through technical ways such as transfer of electricity from generators, through the power lines, and eventually to end-users, as well as non-technical reasons such as pilferage.

“In essence, the plan is (that) there will be four stages. Stage 1, 25 percent reduction in system loss, 50 percent by the next stage and 75 percent and 100 percent ultimately,” she said.

Garin said assessments on the budget needed for these measures continue to ensure that the proposal is ready by next year, with eventual reduction of non-technical charges eyed in one year.

“We have just finished the estimates, and we are looking for the sources, and we will talk to DBM (Department of Budget and Management) and the Executive Secretary for sourcing this,” she added. (PNA)

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