Politics · Philippines Bureau
Labor group pushes for removal of system loss charges from power bills
The Trade Union Congress of the Philippines has urged authorities to eliminate system loss charges from electricity bills alongside the VAT exemption, citing President Ferdinand Marcos's directive during his July State of the Nation Address.
LSN Philippines ·
MANILA — The Trade Union Congress of the Philippines (TUCP) is escalating calls for the removal of system loss charges from consumer electricity bills, arguing that such costs should not remain in place even as the government pursues VAT reductions.
The labor federation's position is grounded in directives issued by President Ferdinand Marcos during his State of the Nation Address on July 27, in which he signaled support for comprehensive relief measures on power bills.
"Removing VAT alone falls short of the relief Filipino consumers require," the TUCP said in a statement, emphasizing that system loss charges represent additional costs passed on to households and businesses that merit elimination alongside tax considerations.
System loss charges, which utilities use to account for power lost during transmission and distribution, have long been a contentious element of consumer bills. The TUCP's push underscores growing pressure on policymakers to address multiple cost components affecting household electricity expenses amid inflation concerns.