The Philippine Chamber of Commerce and Industry (PCCI) said the government’s plan to scrap systems loss charges and the value-added tax (VAT) on electricity bills should serve as a springboard for broader reforms aimed at lowering power costs and improving the country’s investment competitiveness.
The country’s largest business group welcomed President Ferdinand R. Marcos Jr.’s proposal in his State of the Nation Address (SONA), saying the removal of systems loss charges and the corresponding VAT would provide immediate relief to households and businesses. However, it cautioned that reducing electricity costs requires deeper structural changes across the energy sector.
“The removal of systems loss and associated VAT on electricity provides immediate relief, but it must be followed by broader reforms to truly ease the burden on consumers and industries,” PCCI President Perry Ferrer said.
“Our competitiveness depends on reliable and affordable power today while building sustainability for tomorrow. We cannot afford to let high energy costs continue to erode investment and industrial growth,” he added.
PCCI said high electricity prices remain one of the Philippines’ biggest competitive disadvantages, affecting manufacturers, exporters and investors at a time when the government is seeking to attract more industries and create higher-value jobs.
PCCI Director for Energy and Power David Chua said removing pass-through charges is only an initial step. He said the government should also rationalize other electricity charges, diversify the country’s energy sources and accelerate the development of indigenous energy resources to reduce exposure to volatile global fuel prices.
The chamber outlined five priorities to bring down electricity costs over the long term. These include ensuring adequate and reliable baseload power for industries, improving regulatory and market efficiency, expanding the use of natural gas, liquefied natural gas, renewable energy, energy storage, hydrogen and nuclear power, accelerating domestic energy exploration, and fast-tracking transmission projects, permitting reforms and electricity market liberalization.
The recommendations underscore the private sector’s long-standing call for a more comprehensive energy strategy that addresses both the cost of electricity and the country’s long-term energy security.
PCCI said it is ready to work with the Marcos administration in pursuing an energy roadmap that balances affordability, reliability, sustainability and competitiveness, arguing that durable reforms are critical to supporting investment, industrial expansion and economic growth.
