SENATE President Sherwin Gatchalian said expensive electricity is weighing on household finances, small businesses and the country’s economic growth.
”If we want to revitalize our economy and give real financial relief to Filipino families and small businesses, we need to bring down the cost of electricity,” Gatchalian said.
He called for transparency in generation and system loss charges, which are passed on to consumers.
”Generation and system loss charges are pass-through costs on electricity bills that need transparency and justification,” he said.
This comes after the Philippines’ gross domestic product growth showed only 2.3-percent increase in the second quarter.
Gatchalian said the country’s heavy dependence on imported fuel leaves consumers vulnerable to fluctuations in global energy prices.He said reducing power costs should be treated as an economic priority because high electricity prices raise production and operating expenses, making it more difficult for businesses to expand, create jobs and remain competitive.
Gatchalian earlier filed Senate Bill 2350, or the proposed “System Loss Charge Abolition Act,” which seeks to prohibit distribution utilities from passing system loss charges on to consumers.
The measure also seeks to remove the value-added tax on electricity sales, part of Gatchalian’s broader push to reduce the burden of electricity costs on households and businesses.
System loss charges generally cover electricity lost through technical losses and pilferage as power is transmitted and distributed to consumers. Under the existing regulatory framework, a portion of allowable system losses may be recovered through electricity rates.
