The National Electrification Administration (NEA) has recognized the Zamboanga City Electric Cooperative (ZAMCELCO) for reducing system losses from over 20 percent to roughly 13 percent between January to July this year.
According to NEA Administrator Antonio Mariano Almeda, ZAMCELCO implemented measures to reduce or eliminate non-technical system losses.
‘I am glad to restate that the measures taken show great promise,’ Almeda said. ‘Our experience in ZAMCELCO and other ECs [electric cooperatives] now serves as the foundation for developing an institutionalized program to support and implement the envisioned system loss law, should this mandate the prohibition of system loss from pilferages to be passed on to the consumers,’ he added.
Through a P400-million investment from Crown Investment Holdings Inc. (CIHI) targeting infrastructure upgrades and anti-pilferage measures, ZAMCELCO serves as a model for impending regulations on passing system losses to consumers.
‘ZAMCELCO was hopeless before; its system loss was at 20 percent to 23 percent,’ Almeda said. ‘All we did was look for those who didn’t have meters. I told the investment manager to infuse capital, jack up their collection and reduce system loss.’
ZAMCELCO holds a 25-year investment contract awarded in 2018 to CIHI. Beginning November of 2025, the investment managers spent close to P400 million to reduce system loss, purchasing 45,000 meters and building anti-pilferage structures such as elevated meter clusters.
ZAMCELCO also actively pursued criminal convictions, coordinating with law enforcement agencies like the National Bureau of Investigation in Zamboanga City to prosecute power thieves.
To sustain such developments, Almeda encouraged ECs to utilize the reinvestment fund for sustainable capital expenditures to finance debt service tied to expanding and upgrading power systems under Energy Regulatory Commission (ERC)-approved capital expenditure plans.
Meanwhile, Almeda said electric cooperatives are considering a phased approach with state support to address technical system loss tied to rural electrification.
‘There is a direct correlation between line extensions and implementing sitio electrification,’ Almeda said. ‘The longer the line you extend, the bigger the technical system loss incurred.’