Davao Light and Power Co. (Davao Light) Reputation Enhancement Head Fermin Edillon on Wednesday said the utility company will comply with any changes in the law should the government pursue President Ferdinand R. Marcos Jr.‘s proposal to remove the system loss charge from consumers’ electricity bills.
During his State of the Nation Address (SONA), Marcos called for the removal of the system loss charge as part of efforts to ease the burden of high electricity costs on consumers.
In a statement, Davao Light said it respects the government’s policy direction and will abide by whatever measures are eventually enacted.
“DLPC acknowledges the President’s pronouncement during the SONA regarding the proposed removal of the system loss charge. We respect the government’s policy direction and will comply with any changes in the law and implement the corresponding regulations that may be enacted by Congress and issued by the appropriate regulatory agencies,” Edillon said during the Davao Peace and Security Press Corps media briefing at The Royal Mandaya Hotel.
While awaiting the outcome of discussions between the government and regulators, Edillon said the distribution utility continues to implement measures to keep system losses low.
“DLPC continues to pursue initiatives that reduce system losses through network improvements, preventive maintenance, system modernization, and programs addressing avoidable losses. Mao na ang makita ninyo sa amoa na naa miy regular na ginabuhat na mga preventive maintenance, mao na bisan naa’y mga scheduled outage… scheduled nga mga interruptions,” he said.
He explained that these scheduled interruptions are often necessary to upgrade, modernize, and expand the distribution network to minimize technical losses.
Edillon said Davao Light understands the public’s concerns but believes it is best to wait for the outcome of policy discussions before drawing conclusions.
“Mas maayo siguro na atong na lang hulaton unsay outcome sa gi-discussion, especially with our regulators regarding sa pag-tackle sa issue sa gitawag na system loss,” he said.
“With respect sa policy direction sa atong Presidente, definitely, we will comply whatever ang mahimong outcome… o aduna ba’y mga amendments sa atong balaod regarding sa atoang kuryente,” he added.
Edillon also stressed that Davao Light, as a power distribution utility, is bound by existing laws and regulations.
“Kami, being a power distribution utility, we are bound and heavily regulated by law. Whatever ang mahimong outcome, unsay resulta anang ilahang pag-istorya bahin sa pag-tackle regarding ani nga system loss, kami mag-comply,” he said.
Explaining the concept of system loss, Edillon said it refers to electricity lost before it reaches consumers, likening it to a block of ice that partially melts while being transported from the store to a customer’s home.
He said Davao Light’s system loss remains well below the cap set by the Energy Regulatory Commission (ERC).
“As mentioned yesterday at the City Council, we are at around 3.5%, which is below the cap. The allowable cap set by the ERC is 5.5%,” Edillon said.
Asked about the possible impact on electricity bills if the system loss charge is removed, Edillon said consumers may see only a modest reduction, although the actual effect would vary depending on the distribution utility and a customer’s electricity consumption.
“Yes, it has a small impact. It depends on your bill. That depends on the utility; it’s not the same for everyone,” he said.
