Senate President Win Gatchalian has filed a bill seeking to abolish system loss charges passed on to electricity consumers, saying Filipino families should not pay for power they never used.

Senate Bill 2350, or the System Loss Charge Abolition Act, follows President Ferdinand R. Marcos Jr.’s call during his State of the Nation Address to amend the Electric Power Industry Reform Act (EPIRA) and remove system loss charges, including the value-added tax imposed on them.

Gatchalian said the measure could provide immediate relief to consumers amid the Philippines’ high electricity rates. For Meralco customers, system loss charges typically account for 5% to 6% of total electricity bills.

From August 2025 to July 2026, a household consuming 200 kWh monthly paid an average of ₱148.95 in system loss charges, or about ₱1,787.38 over a year, excluding VAT.