Manila: Senator Erwin Tulfo on Tuesday filed three measures seeking to reduce electricity bills by removing system-loss charges, their value-added tax (VAT), and a decades-old energy tax.

According to Philippines News Agency, Tulfo filed Senate Bill (SB) 2339 to repeal Batas Pambansa Blg. 36, which imposes an energy tax on residential consumers; SB 2340 to exempt system-loss charges from the 12 percent VAT; and Proposed Senate Resolution 537 to review the policy allowing utilities to pass system losses on to consumers.

Tulfo highlighted that the energy tax is concealed within the 'government tax' section of electricity bills and is not distinctly identified. 'Pag inalis po natin iyon, malaking kabawasan din po iyon sa billing natin (Removing it would also significantly reduce our bills),' Tulfo stated. He further explained that the Energy Regulatory Commission (ERC) would ascertain the precise reduction, but initial discussions suggested that the savings could be considerable once the VAT, system-loss charge, and energy tax are eliminated. 'Losses po nila iyon. Bakit icha-charge pa po sa iyo (Those are their losses. Why should they charge them to you)?' he questioned.

Under SB 2340, Tulfo emphasized that the ERC must ensure the VAT exemption is mirrored in residential consumers' monthly bills. The Senate energy panel, chaired by Tulfo, will continue its hearing on proposed amendments to the Electric Power Industry Reform Act on Thursday, with power generators, distributors, and electric cooperatives expected to participate.

Tulfo mentioned that these measures are in response to President Ferdinand R. Marcos Jr.'s State of the Nation directive to alleviate electricity costs and could be enacted before the end of the year. 'Kakayanin po iyan, may instruction na po ang Pangulo (We can accomplish that because the President has given the instruction),' he assured.