The Philippine Chamber of Commerce and Industry (PCCI) has expressed support for proposals to remove the system loss charge and value-added tax on electricity, according to Philstar.com. The business group’s endorsement aligns with a broader push to lower power costs in the country.
Philstar.com reports that PCCI backs the removal of these charges but stresses that such steps must be followed by long-term structural reforms. The group’s position was also covered by BusinessWorld Online, which noted that PCCI believes eliminating the system loss charge from consumer bills is only a first step.
The endorsement comes as other power industry players have voiced similar support. The Philippine News Agency reported that a Bacolod-based power firm backed President Ferdinand Marcos Jr.’s push for lower electricity rates. Meanwhile, the Inquirer reported that a Negros power company led by Enrique Razon also supported the rate-cut initiative.
However, not all voices are aligned. BusinessMirror reported that a separate group has expressed caution about removing the system loss charge, suggesting that the move may carry unintended consequences for the power sector.
The system loss charge is a fee that covers electricity lost during transmission and distribution, while the power VAT adds another layer to consumer bills. Removing both would reduce monthly costs for households and businesses, but PCCI’s warning highlights the need for careful planning.
The debate reflects a wider tension between immediate consumer relief and the financial stability of power utilities. Without clear follow-through on reforms, the gains from removing these charges could be short-lived.
What to watch next: whether the government pairs any fee removal with concrete measures to address inefficiencies in the power grid and attract investment in generation capacity.
