Senator Risa Hontiveros filed a bill seeking to eliminate the value-added tax (VAT) on systems loss charges being shouldered by electricity consumers monthly, she announced on Monday, May 4.

In a statement shared online, she called the VAT a burden and insult.

“Itong VAT sa systems loss ay dobleng pasakit at insulto: Pinagbabayad na nga tayo ng systems loss na hindi naman napakinabangan, tapos pagbabayarin pa tayo ng buwis dito,” she said.

Senate Bill No. 2076, the senator said, seeks to alleviate soaring power rates amid the summer season, when the demand for electricity increases.

“This measure seeks to provide immediate and tangible relief by exempting the system loss charge from VAT for residential electricity consumers. By removing the tax on this component, the proposed policy aims to reduce overall electricity bills. The measure is narrowly targeted to maximize consumer benefit while maintaining fiscal prudence,” she wrote.

It was announced in April that electricity consumers can expect a drop in their Meralco bills this month, following the expedited release of a roughly ₱14-billion refund ordered by the Energy Regulatory Commission (ERC).

By reducing the refund period from 36 months to only 12, a deduction of ₱0.2511 per kilowatt-hour on monthly bills has been implemented.