Bacolod: The Energy Regulatory Commission (ERC) has confirmed that Negros Electric and Power Corp. (NEPC) is operating within the system losses cap set for private distribution utilities. The company reported a feeder loss of 7.5 percent for 2025, which falls within the permissible limits.

According to Philippines News Agency, the clarification came from the ERC after it initially suggested that NEPC was not complying with the 5.50 percent cap for private distribution utilities in a recent presentation on the system loss performance of these utilities. This correction was made public on Monday afternoon.

In a separate statement released on Monday night, NEPC highlighted that the data was presented during a Senate committee on energy hearing. This hearing addressed measures to eliminate the system losses charge from monthly electric bills following President Ferdinand R. Marcos Jr.'s directive during his fifth State of the Nation Address (SONA) last month.

The ERC's erratum, posted on Facebook, explained that NEPC, which received its franchise and certificate of public convenience and necessity (CPCN) in 2024 after taking over Central Negros Electric Cooperative operations, is entitled to a higher system loss cap during a transition period. Under Republic Act 12011, NEPC is allowed up to five years from the CPCN grant before the standard 5.50 percent cap is enforced.

Consequently, NEPC's applicable cap for 2025 is 8.50 percent, making its reported 7.5 percent feeder loss compliant with the interim cap. For rural electric cooperatives, the system loss cap ranges between 8.25 percent and 12 percent.

System loss refers to the electricity generated but lost before reaching consumers, with the cost being recovered through a charge on power bills. NEPC is responsible for distributing electricity to the cities of Bacolod, Silay, Talisay, and Bago, as well as the municipalities of Don Salvador Benedicto and Murcia.