Manila: Senate President Sherwin Gatchalian and Senator JV Ejercito have filed complementary measures seeking to remove system-loss charges and value-added tax (VAT) from electricity bills, translating President Ferdinand R. Marcos Jr.'s fifth State of the Nation Address (SONA) directive into proposed consumer relief.

According to Philippines News Agency, Gatchalian announced on Wednesday that he filed Senate Bill No. 2350, or the proposed System Loss Charge Abolition Act, which would stop distribution utilities from charging customers for electricity lost before reaching their homes and businesses. "Filipino families should not be forced to pay for electricity they never used," Gatchalian said. He noted that system loss typically accounts for 5 percent to 6 percent of a Meralco customer's total bill. From August 2025 to July 2026, a household consuming 200 kilowatt-hours paid an average of PHP148.95 monthly, or PHP1,787.38 for the year, excluding VAT. "Removing unjust system-loss charges is a concrete step toward lowering power costs," Gatchalian added.

Ejercito, meanwhile, filed SB 2343, which would exempt the sale of electricity from VAT by amending the National Internal Revenue Code. Unlike proposals limited to the VAT on system loss, Ejercito's bill would remove the tax across the electricity supply chain, from generation to distribution, to lower costs for households and businesses and strengthen families' purchasing power. He also filed a separate measure that would prevent distribution utilities from passing operational inefficiencies, pilferage, and avoidable distribution losses to consumers. "Consumers should pay only for the electricity they actually consume," Ejercito stated. He argued that such losses are business risks that utilities should address through prudent investment, efficient operations, and sound management.

The measures follow Marcos' SONA acknowledgment of the public's demand for lower electricity prices and his request for congressional action on energy affordability.