Twin bills filed to cut electricity costs

Tempo Desk
2 Min Read
An electricity consumer checks the system loss charge on a Meralco electricity bill at his home in Taytay, Rizal, on Thursday, July 30. President Ferdinand Marcos Jr. has called on Congress to amend the Electric Power Industry Reform Act (EPIRA) to remove system loss charges and the corresponding VAT from consumers’ electricity bills as part of efforts to help reduce power costs. (Photo by John Louie Abrina)

By Ellson Quismorio

Mamamayang Liberal (ML) Party‑list Rep. Leila de Lima has filed two measures aimed at lowering electricity bills by removing unjust charges and tax burdens on consumers.

The first, House Bill No. 10677 or the “Non‑Technical System Loss Charge Prohibition Act,” seeks to amend the Electric Power Industry Reform Act (EPIRA) to limit the Energy Regulatory Commission’s authority to technical losses only.

Under the bill, distribution utilities would be barred from passing on costs related to non‑technical losses—such as pilferage, meter tampering, or erroneous readings—to consumers.

The second, House Bill No. 10676 or the “VAT Exemption on System Loss Act for Residential Household Consumers,” adopts Senator Kiko Pangilinan’s Senate Bill No. 2124.

It proposes exempting the system loss component charged to residential consumers from value‑added tax (VAT) by amending the National Internal Revenue Code.

The measure also directs the ERC to ensure that the tax exemption is not offset by other pass‑through charges.

De Lima said the bills are meant to ease the burden of rising electricity costs on Filipino households.

“When the very lifeline that powers every Filipino home is priced fairly, only then can the promise of affordable and reliable electricity be truly fulfilled,” she stressed.

 

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