Philippine President urges EPIRA amendment to cut charges

President Ferdinand Marcos Jr. has called on Congress to immediately amend a key energy law to prohibit electricity distributors from passing system loss charges and the corresponding value-added tax on to consumers, framing the move as essential to lowering the cost of living. The proposal, delivered during his fifth State of the Nation Address on Monday, July 27, 2026, drew strong applause and has quickly garnered support from lawmakers.

Marcos argued that it is unjust for households and businesses to pay for electricity lost due to technical inefficiencies, pilferage, and other factors during transmission and distribution. He stated that consumers should not bear the cost of power they never receive. The President specifically demanded the amendment of the Electric Power Industry Reform Act (EPIRA), enacted in 2001, which currently allows distribution utilities to recover a portion of these losses from customers through their monthly bills.

The call has been met with bipartisan backing. Senator Francis Pangilinan, author of a related bill seeking VAT exemption on system loss for residential consumers, expressed full support on Tuesday, July 28, stating he is prepared to work...