The Department of Energy (DOE) has expressed support for proposals to remove or reduce value-added tax (VAT) on electricity bill components, as part of efforts to ease price costs for consumers.

Speaking during a virtual press conference held on May 4, 2026, Energy Secretary Sharon S. Garin said the agency backs any measure that would bring down electricity prices, but clarified that the final decision lies with fiscal authorities.

“Anything that would lower the price of electricity the DOE supports… [but] the decision… is under the mandate of the Department of Finance,” Garin said.

The statement highlights the DOE’s position as supportive of cost-reduction measures, even as tax policy remains outside its mandate.

The agency’s stance comes as lawmakers push to revisit charges embedded in electricity bills. Senator Risa Hontiveros recently filed a measure seeking to remove VAT on system loss charges, arguing that consumers should not be taxed for electricity that was never delivered.

The proposal forms part of broader efforts in Congress to review power bill components, as concerns over rising electricity costs continue to put pressure on the public.

VAT is among the charges included in electricity bills, and its removal or reduction could directly lower monthly expenses for households and businesses. However, decisions on tax measures, such as VAT adjustments, fall under the jurisdiction of the Department of Finance and require broader evaluation of their impact on government revenues and public services.

The DOE reiterated that while it supports initiatives that could reduce electricity costs, any changes to tax policy will ultimately depend on decisions made at the fiscal level.

Should VAT on electricity bill components be removed to help lower power costs for consumers?

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