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Senator Francis “Kiko” Pangilinan vowed on Tuesday to push amendments of the Electric Power Industry Reform Act (EPIRA) to stop power companies from passing systems loss charges and their associated value-added tax (VAT) onto consumers.

Pangilinan earlier filed Senate Bill No.2124, known as the VAT Exemption on Systems Loss Act for Residential Household Consumers, to reduce the burden on households who continue to pay for system losses they neither consume, cause, nor control.

“ This is a long time coming. Matagal nang dapat hindi pinagpapaguran ng mga consumers ang pagbabayad sa systems loss. Kesa ibayad nila sa system losses at sa VAT nito, mas dapat nila gastusin ang kanilang kinitang pera sa pagkain, edukasyon, sa kalusugan,” said Pangilinan in a statement.

During his State of the Nation Address (SONA), President Marcos urged Congress to act immediately on these reforms. 

Under the current EPIRA framework, distribution utilities are permitted to automatically recover these pass-through costs from the public.

Pangilinan said  he is ready to collaborate with the administration and the Department of Energy to fast-track these amendments.

 Beyond systems loss, he hopes to review the broader EPIRA law to enhance transparency and consumer protection across the power sector.

“Our goal should always be a power sector that is centered on the welfare of consumers,” Pangilinan added, noting that the government must ensure affordable and reliable electricity reaches every corner of the Philippines.

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What impact could these proposed reforms have on electricity consumers and the power industry? Share your thoughts.

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