1st TWG Meeting on Recoverable System Loss Act Held

“Last February 22, 2018, the Technical Working Group (TWG) formed by the House of Representatives’ Committee on Energy met to discuss bills that are proposing a new cap on recoverable system loss. The TWG is headed by Rep. Carlos Roman Uybarreta of 1-CARE Party-List.

The discussion focused on the proper definition and computation of system loss. The Electric Cooperatives (EC) and the Private Distribution Utilities (PDU) were one in admitting that to lower the system loss will entail additional capital expenditures which will eventually be passed on to the consumers in the form of higher electricity rates. Rep. Uybarreta agrees to the said observation hence he encourage the stakeholders to recommend other possible schemes in lowering the cap. The possibility of a staggered implementation for the Performance Incentive Scheme to encourage the lowering of system loss was deliberated. An individualized system loss cap for those distribution utilities which are under exceptional circumstances was also considered.

The stakeholders were given one week to submit their suggested amendments to the bill so that they will be considered in forming the substitute bill”

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