TACLOBAN CITY — The National Grid Corporation of the Philippines (NGCP) clarified that it does not collect transmission technical system loss charges from electricity consumers, following President Ferdinand Marcos Jr.’s directive to remove unnecessary charges from power bills.
Speaking during an online interview with local media on Wednesday, July 29, NGCP Public Relations Department representative Michael Sabejon said the “system loss” mentioned by the President in his fifth State of the Nation Address (SONA) refers to losses at the distribution level, not those within the transmission network operated by NGCP.
Sabejon explained that technical system loss is the natural loss of electricity as power passes through transmission lines and is an unavoidable part of operating power grids. He said NGCP reduces these losses by installing and maintaining equipment such as capacitor banks and Static Synchronous Compensators (STATCOMs).
He stressed that NGCP does not bill consumers for these transmission losses.
According to Sabejon, non-technical system loss refers to electricity lost due to illegal connections, power theft, jumper lines, and other unauthorized consumption within the distribution networks of electric cooperatives and private distribution utilities.
He added that the only NGCP-related charges reflected in electricity bills are transmission charges, which include transmission wheeling rates and ancillary services rates needed to deliver electricity and maintain the stability of the national power grid.
President Marcos, in his fifth SONA on Monday, called for the removal of unnecessary charges, including system loss charges, from electricity bills to help reduce power costs for Filipino consumers.
(JOEY A. GABIETA)
