Concepcion urges ERC to form anti-pilferage task force

Industrialist and consumer advocate Raul T. Concepcion has urged the Energy Regulatory Commission (ERC) to form a task force to monitor compliance with the Anti-Pilferage and Electricity and Theft of Electric Transmission Lines/Materials Act of 1994.

 In a paper, Concepcion, who heads the Consumer and Oil Price Watch (COPW), noted the rampant practice of electricity Pilferage wherein customers connive with meter readers.

 “These pilferages are passed on to consumers as systems loss,” he said.

 The ERC, he said, should be able to establish its own task force to ensure the welfare of the consumers.

 “With the new technology available now, the task force can countercheck the meters to determine whether consumption far exceeds average monthly consumption versus the meter reading,” he said.

 Concepcion warned that if not monitored, the systems loss will lead to increased rate for consumers.

 He said he supports the ERC efforts to lower the system loss cap.

 In August this year, the ERC issued a draft resolution to lower the systems loss cap of distribution utilities (DUs) to eight percent from the current 9.5 percent.

The draft rules will also reduce the systems loss of electric cooperatives from 14 percent to 11 percent.

It is estimated that every one percent drop in systems loss cap would mean a P1.8-billion loss for Meralco but a seven-centavo per kilowatt reduction in customers’ electric bill.

The lowering of systems loss is one of the priorities listed by ERC Chairman Zenaida Ducut when she assumed office this year to help lower power rates in the country.

The current systems loss levels have been in effect since 1999.

Technical, non-technical and utilities’ electricity consumption are allowed to be recovered from consumers. But any loss in excess of the caps is absorbed by the utilities.