Amid the pending amendment of Electric Power Industry Reform Act (EPIRA) of 2001, Energy Secretary Sharon Garin emphasized the need to issue a policy that would support President Ferdinand Marcos Jr's directive during his 5th State of the Nation Address (SONA) on Monday to stop passing the energy system loss charges to consumers.

Garin noted that the issuance of policy would have to be discussed by the Department of Energy (DOE) and the Energy Regulatory Commission (ERC).

"Even though the law is not yet there, we can start doing, issuing policies... leading to that... there is a need to amend the law but I think there are policies that we can issue already," she added.

"We need a bill because its in EPIRA so we can only go so much that we cannot issue a policy to remove it because that is against the law, but we can also start already in bringing it down or the need for us to be more stricter when it comes to the implementation of the policies," she added.

Philippine power rates are one of the most expensive in Asia.

Under the Electric Power Industry Reform Act (EPIRA) of 2001, distribution utilities and electric cooperatives are legally allowed to automatically pass on system loss charges and their corresponding value-added tax (VAT) to end-consumers, subject to caps set by the ERC.

In a statement, the ERC supports policy reforms of Marcos which aims to place the welfare of electricity consumers at the forefront.

"The Commission likewise recognizes the importance of pursuing measures that help reduce unnecessary costs while ensuring the viability of all distribution utilities and promoting a more efficient, affordable, and reliable power sector," it stated.

"As the country’s independent electric power industry regulator, the ERC stands ready to work closely with Congress, the Department of Energy (DOE), industry stakeholders, and other concerned government agencies in advancing the legal and regulatory measures necessary to advance this reform," it added.

The ERC also assures it remains "committed to fulfilling its regulatory mandate to protect consumer welfare through transparent, fair, and accountable regulation."

"The Commission will continue to promote efficiency and support meaningful reforms that would contribute to lower electricity rates without compromising the quality, reliability, and sustainability of electric service for all Filipinos," it added. Robina Asido/PHS