SEN. Francis Pangilinan expressed his full support Tuesday for President Ferdinand Marcos Jr.'s proposal to amend the Electric Power Industry Reform Act (Epira).
Marcos particularly wants the measure prohibiting the passing of system loss charges and the corresponding value-added tax (VAT) to consumers.
Pangilinan is the author of Senate Bill 2124, or the VAT Exemption on Systems Loss Act for Residential Household Consumers, which aims to reduce the burden on households that shoulder system losses they neither consume, cause, nor control.
“This is a long time coming. Consumers should have been relieved of the burden of paying for system losses. Instead of paying for system losses and the VAT imposed on them, they should be able to spend their hard-earned money on food, education and health care,” the senator said.
Pangilinan 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.
Marcos, during his fifth State of the Nation Address (SONA) on Monday, 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 system loss and the VAT imposed on it.
The Epira allows distribution utilities to automatically recover pass-through costs from consumers, including system loss charges.
Pangilinan expressed hope that the proposed amendments would 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. It is our responsibility in government to establish an energy system capable of delivering affordable and reliable electricity to every corner of the Philippines,” he said.
