PCCI backs removal of system loss charge, power VAT, but…
The Philippine Chamber of Commerce and Industry (PCCI) is advocating for the removal of systems loss charges and VAT on electricity to lower costs for consumers and businesses. The group emphasizes that while this is a positive step, broader energy reforms and a diversified energy mix are necessary for long-term economic competitiveness.
Why it matters
High energy costs are a major barrier to industrial growth and investment in the Philippines, making energy policy a critical factor for the country's economic future.
MANILA, Philippines - The country's largest business organization supports the removal of systems loss charges and value-added tax (VAT) on electricity, noting these would reduce power costs for households and industries.
"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," Philippine Chamber of Commerce and Industry (PCCI) president Ferdinand 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.
In his latest State of the Nation Address, President Marcos called for the scrapping of systems loss charges being passed on consumers to reduce electricity cost.
PCCI director for energy and power David Chua said that businesses and consumers are already burdened with numerous pass-through fees.
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