The Philippine Chamber of Commerce and Industry (PCCI), the voice of business in the Philippines, expressed its strong support for the removal of systems loss charges from being passed on to consumers, and the removal of the VAT on electricity as the first steps in reducing electricity costs for Filipino households and industries.
However, PCCI said deeper reforms are urgently needed to secure affordable, reliable,and sustainable power nationwide.
“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,” said PCCI President Perry Ferrer. “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.”
PCCI Director for Energy and Power David Chua added, “Industry and consumers are already burdened with numerous pass-through fees. Removing systems loss and VAT is a welcome start, but the bigger challenge lies in rationalizing other charges, diversifying our energy mix, and unlocking indigenous resources. These bold reforms will ensure that power supply is not only affordable but also resilient against global price shocks.”
To this end, PCCI reiterated five key pillars:
• Baseload reliability to ensure 24/7 supply for manufacturing and investment.
• Regulatory and market efficiency including managing the transition from FiT/FiT-ALL subsidies to GEA-ALL or competitive renewable procurement.
• Diversified energy mix with natural gas, LNG, renewables, energy storage, and emerging technologies like hydrogen and nuclear.
• Expanded energy exploration to unlock untapped domestic reserves and reduce dependence on imports. And,
• Faster transmission expansion, streamlined permitting, and flexible electricity market to ensure that new generation capacity reaches consumers efficiently, projects move without delay, and market mechanisms adapt to evolving realities.
President Marcos Jr. in his second to the last SONA, has called for the removal of the systems loss being charge by power companies on electricity billing.
The PCCI affirmed its commitment to work closely with the Marcos administration and all stakeholders in pursuing a realistic, sustainable, and pro-business energy roadmap. By adapting policies to present realities – ensuring stability, affordability, and competitiveness – PCCI said the country can secure the power needed for industries to compete, the economy to grow, and the Filipino people to prosper.
