The Davao Consumer Movement (DCM) has called for immediate and concrete measures to lower electricity rates, citing the continued burden of rising power costs alongside an already high cost of living.
The group welcomed ongoing legislative efforts to review the imposition of value-added tax (VAT) and other charges on electricity, noting recent discussions at the Senate’s Proactive Response and Oversight for Timely and Effective Crisis Strategy (PROTECT) Committee.
In a statement sent via email to Edge Davao, DCM said proposals to review VAT and other power-related charges signal growing recognition that government-imposed fees contribute significantly to high electricity bills.
“We welcome the ongoing efforts of lawmakers to review the imposition of the value-added tax (VAT) and other charges on electricity,” the group said.
It also cited discussions involving Senator Sherwin Gatchalian on reviewing VAT, franchise taxes, local franchise taxes, and energy taxes, as well as Senator Rodante Marcoleta’s proposal to remove the 12 percent VAT on electricity.
The group also noted support from Energy Secretary Sharon Garin for measures aimed at reducing power costs.
“These are important steps, but they must now lead to decisive results,” DCM said.
The group stressed that the removal of the 12 percent VAT on electricity should be prioritized, saying it would provide immediate relief to households and small businesses.
“One that we see must be prioritized is the removal of the 12% VAT on electricity. At a time when families are forced to stretch limited incomes and small enterprises struggle to stay afloat, removing this tax can provide immediate and meaningful relief,” DCM said.
DCM also urged lawmakers and energy regulators to conduct a full review of all pass-through charges reflected in electricity bills, including the universal charge, Feed-In-Tariff Allowance (FIT-All), Green Energy Auction Allowance (GEA-All), lifeline subsidies, and payments related to National Power Corporation (NPC) debts.
“Consumers must not be made to shoulder costs that are not directly tied to the actual delivery of electricity to their homes,” the group said.
The movement further supported calls to stop passing on non-technical system losses to consumers, which it described as including electricity theft and administrative inefficiencies.
“We also support the call of Sen. Marcoleta to stop passing on to consumers non-technical system losses, which includes electricity theft and administrative inefficiencies. These are costs that consumers did not create and should not be forced to pay, especially when they are further compounded by taxes,” DCM said.
The group emphasized that high electricity rates directly affect household budgets, small businesses, and overall quality of life, urging lawmakers to move from deliberation to action.
“We urge lawmakers to move beyond deliberations. We call on them to swiftly enact measures to remove VAT on electricity, initiate a comprehensive review of all charges passed on to consumers, and ensure that inefficiencies within the system are no longer borne by the public,” DCM said.
