By Benjamin Cuaresma
MANILA, Philippines — The Department of Energy (DOE) has launched a multi-agency task force to carry out President Ferdinand R. Marcos Jr.‘s directive to remove system loss charges and the corresponding value-added tax (VAT) from consumers’ electricity bills, signaling the administration’s strongest push yet to reduce power costs for millions of Filipinos.
The newly established Joint Task Force brings together the DOE, the Energy Regulatory Commission (ERC), the National Electrification Administration (NEA), and electric cooperatives across the country to develop the technical, regulatory, and legislative measures needed to implement the President’s proposed power sector reforms.
The initiative follows Marcos’ fifth State of the Nation Address (SONA), where he urged Congress to amend the Electric Power Industry Reform Act (EPIRA) of 2001 and abolish the controversial system loss charge, a long-standing component of electricity bills that consumer groups have criticized for years.
According to the DOE, the task force will serve as the government’s central coordinating body in crafting reforms aimed at lowering electricity costs, strengthening consumer protection, and improving the efficiency of the country’s power industry.
“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 department said.
As part of its initial work, the DOE has already convened meetings with the ERC and the Manila Electric Company (Meralco) to identify the regulatory adjustments and policy mechanisms necessary to implement the proposed removal of the charges.
The department said consultations are likewise underway with other private distribution utilities to ensure that the reforms produce tangible savings for consumers without compromising the stability and reliability of electricity services.
Beyond supporting legislative amendments to EPIRA, the task force has also been directed to submit technical recommendations that will guide lawmakers in crafting the necessary enabling legislation.
At the same time, government agencies and industry stakeholders are pursuing complementary reforms designed to reduce system losses at their source through tighter enforcement against electricity theft, improved operational efficiency, and continued modernization of power distribution facilities nationwide.
The DOE said these parallel initiatives are intended to build a more resilient and efficient power sector while ensuring that the benefits of lower electricity costs are sustained over the long term.
The creation of the Joint Task Force marks the administration’s first major institutional step toward fulfilling one of President Marcos’ key SONA commitments. If the proposed reforms are enacted, Filipino consumers could see the removal of charges that have long contributed to high electricity bills, potentially delivering substantial savings to households and businesses while reshaping the country’s power pricing system.
ia/xf
