Razon-led Negros power backs rate cut push

BACOLOD CITY, NEGROS OCCIDENTAL, Philippines — Tycoon Enrique Razon Jr.’s Negros Electric and Power Corp. (Negros Power) on Sunday expressed its full support for President Marcos’ initiative to reduce electricity costs, describing it as a “significant step” toward providing meaningful relief to Filipino consumers and making power more affordable.

Following the President’s announcement during his fifth State of the Nation Address (Sona), Negros Power, which serves consumers in Central Negros, said it is awaiting official implementing guidelines from the Department of Energy (DOE) and the Energy Regulatory Commission (ERC), particularly regarding the directive to remove or reduce system loss charges.

Negros Power spokesperson Leomel Tambanillo said the company fully supports the President’s vision of lowering electricity rates while ensuring that implementation remains consistent with existing laws and regulatory requirements.

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“Negros Power gives its full support to President Marcos Jr.’s initiative to lower electricity expenses for our consumers,” Tambanillo said.

“The moment the DOE and the ERC issue the implementing guidelines or the necessary regulatory rules to enforce this policy, we are ready and will fully comply,” he said.

Regulatory framework

Tambanillo explained that while the President has set a clear policy direction, distribution utilities must continue operating under the current regulatory framework until the DOE and ERC formally issue the necessary guidelines.

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Negros Power also reaffirmed its commitment to work closely with the national government, the DOE, and the ERC in implementing measures aimed at reducing electricity costs.

The distribution utility assured consumers that it would promptly carry out all official directives once finalized, ensuring full compliance with applicable laws while continuing to provide affordable, reliable and consumer-centered electric service.

System loss

During his Sona on July 27, Marcos called for the removal of system loss charges from consumers’ electricity bills, saying households should no longer bear costs arising from inefficiencies in the power distribution system.

System loss refers to the difference between the electricity delivered through a distribution network and the actual power billed to consumers. It is caused by technical losses in transmission and distribution facilities, as well as electricity theft.

“It’s time to stop passing the burden of system loss to consumers. This is being charged to consumers and even subjected to value-added tax. System loss is not the consumers’ fault,” Marcos said in Filipino.

The President urged Congress to immediately amend the Electric Power Industry Reform Act (Epira) to prohibit the charging of system losses and the corresponding value-added tax to consumers.

Epira, or Republic Act No. 9136, was enacted in 2001 to restructure and privatize the country’s power industry, dividing it into four key sectors: generation, transmission, distribution and supply. /cb