'System loss is not unique to any distribution utility but is a common operational aspect of the delivery of electricity,' Meralco says in a statement, adding that its system loss rate was 'well below' the 6.5% cap set by regulators
MANILA, Philippines – Some system loss is unavoidable when delivering electricity, Manila Electric Company (Meralco) said, as it urged lawmakers to consider the operational and financial impact of President Ferdinand Marcos Jr.’s proposal to remove the charge from consumers’ power bills.
Meralco said it respected the President’s policy direction but stressed that a certain level of technical loss is “inherent in operating an electric distribution system.”
“While distribution utilities like Meralco continue to invest in modernizing and upgrading facilities and deploying technologies that reduce system losses, a certain level of technical losses remains inherent in operating an electric distribution system,” Meralco executive vice president and chief operating officer Ronnie Aperocho said on Tuesday, July 28.
System loss refers to the difference between the electricity entering a distribution network and the amount eventually recorded and billed to customers. There are two parts to system loss: technical losses which occur as electricity travels through wires, transformers, and other equipment, and nontechnical losses, which may come from electricity theft, illegal connections, and metering problems.
