Senator Francis “Kiko” Pangilinan on Tuesday expressed his full support for President Ferdinand Marcos Jr.’s proposal to amend the Electric Power Industry Reform Act (EPIRA), particularly the measure to prohibit the passing of systems loss charges and the corresponding value-added tax (VAT) on these charges to electricity consumers.
The senator has also authored Senate Bill No. 2124, or the VAT Exemption on Systems Loss Act for Residential Household Consumers, to reduce the burden on households who continue to pay for system losses they neither consume, cause, nor control.
“This is a long time coming. Matagal nang dapat hindi pinagpapaguran ng mga consumers ang pagbabayad sa systems loss. Kesa ibayad nila sa system losses at sa VAT nito, mas dapat nila gastusin ang kanilang kinitang pera sa pagkain, sa edukasyon, sa kalusugan,” he said.
The senator said he is prepared to work with the administration, fellow lawmakers, the Department of Energy, and other stakeholders to ensure that the necessary amendments to EPIRA are passed without delay.
“I welcome the President’s proposal, and I am ready to help move it forward in the Senate. If we are serious about lowering the cost of living, we must pursue reforms that make electricity more affordable, transparent, and fair for every Filipino,” he added.
President Marcos, during his State of the Nation Address (SONA) on Monday, July 27, urged Congress to immediately amend EPIRA to bring down the price of electricity in the country, pointing out that consumers should not be made to pay for systems loss and the VAT imposed on it.
The EPIRA allows distribution utilities to automatically recover pass-through costs from consumers, including systems loss charges.
Pangilinan expressed hope that the proposed amendments would also serve as an opportunity to review other provisions of the EPIRA, with the goal of strengthening consumer protection, enhancing transparency in the power sector, and ensuring that the country’s energy policies remain responsive to the needs and welfare of ordinary Filipinos.
“Our goal should always be a power sector that is centered on the welfare of consumers. Tungkulin natin sa gobyerno na makatatag ng isang energy system na kayang maghatid ng abot-kayang at maaasahang kuryente saan mang sulok ng Pilipinas,” he said.