The Department of Energy (DOE) has formed a Joint Task Force to advance the implementation of President Ferdinand Marcos Jr.’s directive to remove system loss charges and the corresponding value-added tax (VAT) from consumers’ electricity bills.
In a statement on Thursday, July 30, the DOE said the newly formed body brings together the DOE, Energy Regulatory Commission (ERC), National Electrification Administration (NEA), and electric cooperatives to lead the development of the technical, regulatory, and legislative measures needed to implement the reform.
“The Joint Task Force will coordinate the technical, regulatory, and legislative work needed to advance the Administration's commitment to fairer electricity rates, stronger consumer protection, and a more efficient power sector,” the DOE said.
The formation of the task force follows Marcos’ Fifth State of the Nation Address (SONA) on July 27, when he called on Congress to amend the Electric Power Industry Reform Act of 2001 (EPIRA) and scrap the system loss charges imposed on consumers.
The DOE said the task force aims to develop measures that will protect consumers, improve operational efficiency, and strengthen the country’s power sector.
The department also expressed full support for Marcos’ call to remove system loss charges and the corresponding VAT from electricity bills, saying it moved swiftly to turn the President’s policy direction into action.
On July 28, the DOE convened the ERC and Manila Electric Company (Meralco) to discuss the policy, regulatory, and legislative measures needed to deliver fairer electricity bills.
The DOE said it is also engaging other private distribution utilities to ensure that the proposed reforms result in meaningful savings for consumers while promoting more efficient electricity services.
“The Joint Task Force’s objective is to ensure technical collaboration and inclusive stakeholder participation as legislative and regulatory measures are developed,” the DOE said.
“Central to its mandate, the Joint Task Force will pursue reforms that protect consumer interests, improve operational efficiencies, and strengthen the long-term reliability of the Philippine power sector,” it added.
The DOE said it continues to work with private distribution utilities across the country to identify practical ways to implement the President’s consumer-first agenda.
“Beyond legislative reforms, the DOE, together with the ERC, NEA, electric cooperatives, and industry stakeholders, is also advancing complementary measures to reduce system losses at their source through improved operational efficiency, strengthened enforcement against electricity theft, and the modernization of distribution networks,” the DOE said.
The DOE said these initiatives are intended to help lower electricity costs while building a stronger and more efficient power system in the long term.
