Philippine Senators Seek Further Electricity Cost Relief

Three senators are pushing for broader energy cost relief either through the total elimination of the charges or the removal of value-added tax (VAT) from residential electricity bills, as they welcomed the removal of the VAT on system loss charges. “The Senate will continue pushing for legislation that will reduce or totally remove the system loss charges passed on to consumers and ensure that they pay only for costs that are reasonable and justified,” Senate President Sherwin T. Gatchalian said in a press statement on Tuesday. He asked the Energy Regulatory Commission to strictly implement the VAT removal and audit of fuel pass-through costs, ensuring any additional increase in electricity prices is justified amid fuel price hikes. Separately, Senator Lorna Regina “Loren” B. Legarda noted that it translates to only a small cut in electricity bills and that other energy charges could also be considered for VAT removal. “The BIR (Bureau of Internal Revenue) has shown that there are things that can already be fixed through the proper implementation of existing laws, without waiting for new legislation,” she said in a press statement. Meanwhile, Senator Paolo Benigno “Bam” A. Aquino IV in a manifestation on Monday’s session renewed his push for the removal of VAT from the overall electricity bill for residential homes, cutting down the costs by 12%. “As much as we applaud and welcome this removal of VAT on systems loss, we hope that, so our fellow citizens can feel the decrease in electricity costs more, the removal of VAT on the entire electricity bill for residential consumers will also be addressed,” Mr. Aquino said. — Kaela Patricia B. Gabriel