PCCI Backs System Loss Removal from Power Bills, Urges Further Reforms

The Philippine Chamber of Commerce and Industry (PCCI) has expressed support for the removal of system loss charges and the associated value-added tax (VAT) from electricity bills. However, the organization strongly urges the government to pursue further broader reforms to truly ease the burden on consumers and industries. In a statement, PCCI President Ferdinand A. Ferrer said, "The removal of system loss and associated VAT on electricity provides immediate relief, but it must be followed by broader reforms to truly ease the burden on consumers and industries." He noted that high energy costs are derailing the Philippines’ competitiveness in the contest for investment. PCCI Director for Energy and Power David Chua said that the charges on the power bill are due for an overhaul. "The bigger challenge lies in rationalizing other charges, diversifying our energy mix, and unlocking indigenous resources," he said. The PCCI called for greater use of natural gas, renewables, energy storage systems, and emerging technologies like hydrogen and nuclear to diversify the energy mix. They also called for baseload reliability to ensure 24/7 supply for manufacturing and attract investment, as well as efficient regulation and markets, including managing the transition from FiT/FiT-ALL subsidies to GEA-ALL or competitive procurement of renewables. PCCI also advocated for energy exploration to unlock untapped domestic reserves and reduce dependence on imports.