Electricity provider linemen repair a power line in Manila on July 15, 2026.
Rappler
The Department of Energy says reducing or eliminating the system loss charge itself will take time, requiring a phased program and billions of pesos in investments
Filipino consumers may see the 12% VAT on system loss charges removed from electricity bills by November at the earliest, but eliminating the system loss charge itself will take longer and require significant investments.
The Bureau of Internal Revenue is preparing a memorandum to implement the VAT exemption, recognizing that system loss is a cost rather than income for electricity providers.
