Manufacturers Rally Behind EPIRA Reforms to Cut Power Costs, Strengthen Philippine Industry

News | National Posted on 2026-08-04 14:20:02

MANILA, Philippines — The country's producers and manufacturers have expressed strong support for the proposed amendments to the Electric Power Industry Reform Act (EPIRA), saying the reforms could pave the way for lower electricity costs, increased investments, and stronger industrial competitiveness.

The Federation of Philippine Industries (FPI) welcomed President Ferdinand R. Marcos Jr.'s call during his fifth State of the Nation Address (SONA) to revisit the EPIRA law and implement reforms that would make electricity more affordable, reliable, and globally competitive.

FPI Chair Elizabeth Lee said reducing power costs is a crucial step toward strengthening the country's manufacturing sector, attracting more local and foreign investments, expanding exports, creating quality jobs, and improving the Philippines' position in the global economy.

"The availability of competitively priced electricity is fundamental to sustainable industrial growth and national economic development," Lee said.

Among the key proposals raised by the President is the removal of system loss charges imposed on consumers, emphasizing that households and businesses should only pay for the electricity they actually consume.

While supporting the initiative, Lee stressed that any amendment to the EPIRA should be guided by comprehensive technical, regulatory, and economic studies conducted by the Department of Energy (DOE) and the Energy Regulatory Commission (ERC).

She noted that existing regulations already contain accountability mechanisms, including ERC-prescribed limits on recoverable system losses. Distribution utilities and electric cooperatives are required to absorb losses that exceed allowable thresholds, encouraging greater operational efficiency and reducing unnecessary costs.

Lee also emphasized the need for continued investments in modernizing the country's power infrastructure to minimize technical losses while strengthening enforcement against electricity theft and improving governance across the energy sector.

"Future reforms should encourage infrastructure investments that improve efficiency while intensifying measures to eliminate non-technical losses through stronger anti-electricity theft initiatives and better regulatory oversight," she said.

According to the FPI, meaningful reforms must balance immediate consumer relief with the long-term financial sustainability of the power industry.

"We fully support initiatives that lower electricity costs for Filipino consumers and businesses, provided these reforms are supported by sound technical and economic assessments," Lee said. "The country must strike a careful balance between reducing power rates and maintaining the financial viability of the energy sector to secure long-term energy security, modern infrastructure, and sustainable industrial growth."

Industry leaders believe that modernizing the EPIRA will not only ease the burden of high electricity prices but also help position the Philippines as a more competitive manufacturing and investment destination in the region.

NPO News Team I PNA-PR

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