Connect with us

Headline

ERC moves to scrap VAT on system loss charge ahead of Congress action

Published

on

Abi Sarabia M., Philippine Canadian Inquirer
August 12, 2026

Photo courtesy: Philippine Information Agency

The Energy Regulatory Commission (ERC) is working to remove the 12 percent value-added tax (VAT) on the system loss charge in electricity bills even before Congress passes legislation addressing the issue, ERC Chairperson Atty. Francis Saturnino Juan said.

Juan said the commission is coordinating with the Bureau of Internal Revenue (BIR) to implement the VAT removal ahead of a full legislative resolution on the system loss charge itself, which remains under deliberation in Congress.

The move follows President Ferdinand Marcos Jr.’s call during his State of the Nation Address for the system loss charge to no longer be passed on to consumers.

According to Juan, while lawmakers continue deliberating the complete removal of the system loss charge from consumers’ bills, the ERC and BIR are finalizing an agreement to fast-track the elimination of VAT on the charge in the meantime.

Separately, the Department of Energy (DOE) said it is still studying how to eliminate system loss altogether, with Energy Secretary Sharon Garin noting that the current focus is on non-technical system loss, which is caused mainly by pilferage, or the theft of electricity.

Garin distinguished this from technical system loss, which refers to electricity lost along transmission lines as it travels from generation companies to the grid. She said no country has achieved zero technical system loss.

The secretary said a multiagency task force has been formed to address the non-technical losses. 

“The major issue now is how do we address non-technical because due to pilferage. We are created a multiagency Task Force, the National Electrification Agency ah Administration, ERC, even NAPOCOR, TRANSCO, DOE para po hanapan po ng paraan (to look for a solution). Now, our objective is to have zero on that, na i-eliminate siya (to eliminate it),” Garin said.

The task force includes the National Electrification Administration, the ERC, the National Power Corporation (NAPOCOR), the National Transmission Corporation (TRANSCO), and the DOE.

Garin said each concerned government agency is preparing its own proposed budget or policy reforms aimed at eliminating system loss charges from electricity bills, though no timeline was given for when these measures would take effect.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Maria in Vancouver

Lifestyle1 week ago

When Family Ties Break: Learning to Live With Estrangement

There was a time when the idea of becoming estranged from your own family seemed almost unthinkable. Family was family....

Headline3 weeks ago

A Day In My Life

There was a time when I thought a fulfilling life had to be busy to be meaningful. Now, I think...

Headline1 month ago

Letting Go with Love

There is a particular kind of heartbreak that comes with watching your child grow up. It isn’t the heartbreak of...

Headline2 months ago

Living With Anxiety: The Invisible Weight We Carry

There are illnesses we can see, and then there are the ones we learn to hide. Anxiety is often one...

Headline2 months ago

The Art of A Slow Weekend

We live in a world that glorifies being busy. Some people wear exhaustion like a badge of honour. Calendars are...

Headline3 months ago

Why We Chose an Intimate Wedding — And Why More Couples Are Doing the Same

Every wedding anniversary takes me back to one of the most magical days of our lives and reminds me why...

Headline3 months ago

Celebrating Turning 58

Birthdays have a way of making us pause—not to count the years we’ve lived, but to appreciate the countless blessings...

Lifestyle4 months ago

The Painful Reality of Losing Someone

Recently, I experienced the painful reality of losing someone through others. One friend lost her fiancé to death, while another...

Headline4 months ago

The Sobering Reality of Growing Old

Growing old brings a sobering reality: time is finite.  You watch your body slow down, see your parents age, and...

Lifestyle5 months ago

Dr. David Suzuki’s Legacy: A Celebration at 90

Celebrating Dr. David Suzuki’s 90th birthday on Friday, May 22  was a true privilege and a great pleasure! My husband,...