Meralco's "System Loss Charge" as Explained in Physics
Posted by Ayel | Posted in Current Events, Teaching | Posted on 23-05-2008
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I HAVE only watched the news program last night after more than a week of no-TV. And last night, I have heard so much blabbery on the “system loss charge” that Meralco passes on to its consumers. There was this activist who pushes on the complete removal of “system loss charge” from the Meralco bill, which he thinks will significantly reduce power rates nationwide.
So, the problem is the high cost of electricity that is blamed on the other charges collected by Meralco and other distributors. I believe that it is legal to collect such a charge becasue according my readings, there is a law that allows distribution utilities to pass on to their consumers up to 9.5% of power purchased. But I don’t know how much Meralco charges its consumers for its system loss.
But what exactly is this thing called system loss? The discussion on TV focuses on pilferage or theft of electricity. That is what some groups of activist know that is why they are clamoring for the removal of which in our bill. They are thinking that Meralco charges everyone the cost of electricity stolen by other people.
System loss isn’t just that. It is an inevitable drawback of electric transmission. There is no known ransmission system that is 100% efficient. Everyone seems to blame it all on the inefficiency of Meralco’s or Napocor’s transmission without knowing that whenever electricity is transmitted, there would always be losses dues to resistance. In Physics, my instructor in college calls it I2R losses., where I is the Current (Amperes) and R is Resistance (Ohms). That is the reason why electricity is tramitted at very high voltages.
If Meralco or other electric companies will not pass it on to their consumers, how would these companies recover the losses dues to transmission?
But I am not saying that we should no longer question the collection of system loss charge. We still have to know how much is the actual system loss of if Meralco is being just in charging its consumers.





i dunno pero super graveh na kamahal ang meralco!!! super!!! sa marbel, kahit “on” ang lahat araw-araw less than 1k lang ang bill pero dito times three!
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Oo nga raw eh… yung mga nakasabayan ko from the airport ganun din ang sabi. Okay lang daw dito kahit dalawa airon mo sa bhay, kaya mo pang bayaran pero sa manila nakakalula raw ang halaga sa electric bill…
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System loss exists due to poor transmission caused by meralco’s inefficient tools such as copper or anything that can transmit electricity. I believe maintenance of these “tools” are already passed on to the consumers through some of the charges, therefore meralco SHOULD NEVER charge system loss to the paying public because, meralco should have taken cared of these facilities to avoid any poor transmission. AND WE ARE SUPPOSEDLY PAYING FOR THESE MAINTENANCE ALREADY APART FROM THE SYSTEM LOSS.
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Kristine, maintenance is different from system loss. All wires used in power transmission has a so-called “resistivity.” Copper wire is used because, among the common metals, it has the lowest resistivity. Resistivity is only one of the four factors of resistance — the others being cross-sectional area of the wire, length of the wire, and temperature of the wire. Thin, long, and hot wires result to greater power loss. Power loss is computed using the formula P=I2R. Since copper wire has resistance, power loss is unavoidable. Aside from that, power is also lost to pilferage by some of our law-breaking citizens. Altogether, that is called system loss. That is the point in question. The law allows private distributors to collect 9.5% of the purchased power from its consumers.
Let’s wait for Meralco to acquire superconductors to avoid completely the problem of system loss.
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To the author of the above RE Meralco’s “System Loss Charge” as Explained in Physics, as I’ve been an Electrical Engineer of Electric Company hereat and in Saudi Electricity Company KSA and faculty member of the College of Electrical Engineering in a University hereat P.I.
You DON’T UNDERSTAND what you’ve published and discussing. Please don’t discuss any matter that is not your field of expertise and exposure for you are missed leading the reading public and inculcating wrong knowledge who ever read your article.
As an Electrical Engineer and practicioner for more than 2 decades hereat and abroad, the “SYSTEM LOSS” that Meralco is charging to their customer is a great INSANITY & FOOLISHNESS! MERALCO is cheating the Pilipino people.
Below is an excerpt from the Inquirer anent to this topic. Better read inorder for you to have a clear understanding of SYSTEM LOSS CHARGE
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ayel Reply:
January 31st, 2009 at 8:08 am
@Avelino Sarmiento, Hi, thank you for your comment on my short post.
(I truncated your comment. I left out the article you attached as it may take saome space from my hosting.)
Let me clarify some points you have missed.
First of all, unlike you said, I understand what I am talking about. I actually didn’t expect that an experienced electrical engineer like you would misinterpret this post.
As a blogger, I have never intended to mislead my readers nor do I write fallacious content. If you may, please read the post above again.
However, let me dissect it for you:
1. I didn’t clain that I am an authority when it comes to the physics of system loss but this post simply presents the idea that there are losses that are unavoidable. The article from Inquirer by Neal Cruz even mentioned it in the first paragraph. (I don’t know if you have invented a 100% efficient transmission system but I’m sure Meralco’s or the Napocor’s isn’t 100% efficient.)
2. I did not say that Meralco is charging its customer only the losses due to that. What I am saying is that the reports on TV and the activists (on the night I watched TV) seemed to be talking ONLY about the losses due to pilferage as if it is possible for an electric company to run without losses even if nobody steals from them.
3. I did not say that what Meralco is charging is the RIGHT AMOUNT or that Meralco SHOULD NOT BE QUESTIONED ANYMORE. I even intended to stir the readers’ interest to find out how much is does Meralco lose due to the nature of the transmission and distribution system.
4. I also stated that is is legal to pass on the cost of system loss to the public because there is a law that said it is right. The law specified, too, up to how much can the distributor charge its consumers. By saying that, I don’t mean that Meralco is abiding by this law. I did not claim that I know if Meralco does abide by this law.
Mr.Sarmiento, I respect your opinion but I would rather that you read it again before accusing me that I don’t know what I wrote about. Thank you.
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To make things simple, systems loss is the difference BETWEEN the total power generated by the plants AND the sum of all the power ACCOUNTED FOR in the residential, commercial and industrial electricity bills. Not all is stolen, though.
Allow me to make a SHORT distinction between what is inevitable systems loss for everybody specially the author to understand and appreciate. (I hope I can make it in simple layman’s terms.) To the author,After reading and meditation on this regards your reply is highly appreciated
A. Technical Losses -
1. Conductors such as copper and aluminum for domestic utility voltage transmission and distribution (220/440V)and steel-reinforced aluminum for medium and high voltage transmission(4.16KV to 138KV) all consume electricity since copper, aluminum, and steel are not “perfect” conductors. They will consume some of the electricity and dissipate it as heat. This energy will of course be “missing” from the utilized sum from the bills.
2. Add to that those consumed in the substations (switching yards that connect your city lines to the power grid) which may come from Substation Transformer (huge, floor-mounted types) which step-down High Voltage coming from TRANSCO to a lower, “safe” distribution voltage. These transformers have so-called core losses because again, transformer coil windings are made from copper or aluminum. Further, energized transformers, even if not connected to any load will still consume power in the primary (higher voltage) windings.
3. Transformers also have cooling systems which utilize huge electric fans which operate much like the radiator system on your air conditioning unit. This also consumes electricity.
4. The different aspects of power in these substations are measured for control and monitoring purposes using, again, smaller instrument transformers which also consume power. Solid state electronics, including on-site computers and transmitters, are also installed for a more efficient supervision in a central area, say Meralco Bldg. in Ortigas, which controls the whole of its franchise area in Luzon. These peripheral equipment’s consumption, likewise, is “missing” from the sum.
5. After power leaves the substation through the distribution lines (which conductors will consume some more power), it goes to the distribution transformer on top of the electric post nearest your house. Again this transformer has its own systems loss. Meralco’s area of responsibility ends where the service-drop cable enters your electric meter.
B. Non-Technical or Pilferage Losses – Unauthorized tapping into the system, using of jumpers to bypass the electric meter, use of devices that alter the meters’ reading, and generally all usage that is not reflected in the bills by fraudulent methods. The meter readers’ errors also fall into this category.
C. Administrative Consumption Losses- Every substation has its own office building which consumes electricity for its lighting, office equipment, maybe appliances such as coffee-maker, water dispensers, and cellphone chargers also adds to systems loss.
What I’m not sure, since it’s not clear from the answers given in the Senate, if the power consumed in the whole Meralco complex in Ortigas, or in their other offices in the franchise area, which may include the collection offices, are also included in the systems loss computation. If so, this belongs to administrative consumption
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It’s standard practice worldwide that distributors are ALLOWED a certain amount of systems loss since there are no perfect machines, so transformers and conductors are not an exemption to this. The amount of energy leaving the power plant will always be bigger than the energy that the distributor will collect based on the meters.
Therefore, technical losses are inherent to the system thus,can we allow Meralco or whoever runs distribution to pass this on to the consumers wholly?
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ayel Reply:
February 1st, 2009 at 2:48 am
@Avelino Sarmiento, thank you for this c0mment. That definitely reinforced my argument, here. I have always wanted intelligent discussi0ns here.
I appreciate your explanation. You are n0t totally Greek here.
Finally, you have g0tten my point. We are both asking if it meralco is charging the right amount only that you are more sure that they aren’t. My conclusi0n is, they are charging the consumers just enough if they are collecting system loss charge within the allowed limit. If that still w0n’t do, then somebody must try to make a new law to either lower down the limit or totally prohibit them fr0m passing on to the public the cost of system loss.
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Meralco’s “System Loss Charge” as Explained in Physics
Quote “In Physics, my instructor in college calls it I2R losses., where I is the Current (Amperes) and R is Resistance (Ohms). That is the reason why electricity is tramitted at very high voltages”. unquote
From our exchange of discussion anent to the above, is the System Loss Charge the I square x R as per your physics instructor? Please go back to your physics and carefully understand what’s this I square x R. And what’s it called in physics or any technical book.
I want you and everybody hereat to be enlightened specially the correct usage of technical terms for nobody to be missed led
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Ayel Reply:
February 1st, 2009 at 11:50 am
@Avelino Sarmiento, I remember my physics fairly well.And I (squared) x R is called power loss. It is the equation you get by manipulating Ohm’s Law and Joules Law. And Joules Law is telling us some of the energy is lost during the trasmition and distribution of electricity. You have actually said that, too. It is part of the technical losses. It contributes to the total system loss. That is all I am trying to explain here. That is the physics of system loss. The others, as you said are non-technical and the administrative consuption.
Ayel s last blog post..A Grave Mistake
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Avelino Sarmiento Reply:
February 1st, 2009 at 12:48 pm
@Ayel, SO you’re forced to make your homework & research quite a little bit Ha. Now, have lessons learned that before posting any topic for discussion specially here in the internet have an extra care and caution for reasons there silent majority who are closely watching & observing the line of exchange of ideas.
It could not be denied that there are times that yours, mine and some other wit might or will be put into challenge. But in my point of view that’s a healthy discussion for each and everyone of us to learn most specially who are not resourceful and forget the past school lessons which is not acceptable.
Thanks
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Mr. here is a reference book that you could read and will clear up your wit anent to our discussion.
ELECTRIC TRANSMISSION & DISTRIBUTION
by Bernhardt G. A. Skrotzki
On page 402-403 of section 9-7 – Copper loss factor & equivalent hours, the Isq. x R of your physics is clearly explained and hope you’ll be enlightened. And if you’ve time to read more, go to page 7-8 of the suggested reference book section 1-5 Electric Power- Heating effect of electric current.
Again I repeat do your homework to be intelligent before creating any topic for further discussion.
Now, from the explanation on the said book you’ll agree with me that your physics instructor is not correct specially you’ve related the said formula from Ohms law the SYSTEM LOSS CHARGE.
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ayel Reply:
February 1st, 2009 at 8:44 am
@Avelino Sarmiento, definitely, Isquared x R is n0t equal to the system loss charge. That is very clear, as we both know, and as you have menti0ned in your prevoius comments, we still have to factor in all the other losses.
Again, to clarify my point, this post is n0t trying to explain the whole of the “system loss charge” issue meralco is involved in.
I think we are running around the bush. I clearly understand your point. I am also not trying to c0ntest against your kn0wledge. The point of this post is very simple: there would never be zero system loss.
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@Avelino Sarmiento, thanks for your comments. They are greatly appreciated.
I have always been conscious about what I write. I hope the issue has been clarified. I am not pretending to know everything but at least I understand what I write about.
Thanks again.
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