Senator Erwin Tulfo on Tuesday, July 28, filed two bills and a resolution aimed at lowering electricity bills by removing system loss charges, exempting such charges from the value-added tax (VAT), and repealing the country's decades-old energy tax.

The measures were filed a day after President Ferdinand Marcos Jr., in his fifth State of the Nation Address (SONA), called for the removal of system loss charges and VAT on electricity bills to ease the burden on consumers.

Tulfo filed Senate Resolution No. 537, which seeks a Senate inquiry into the Electric Power Industry Reform Act (EPIRA) provision allowing system loss charges to be passed on to consumers. He also filed Senate Bill No. 2239, which seeks to repeal Batas Pambansa Blg. 36 or the Energy Tax Law, and Senate Bill No. 2340, which proposes exempting system loss charges from the 12% VAT.

Speaking to reporters, Tulfo said the measures were intended to reduce electricity costs, noting that consumers are paying not only for electricity consumption but also for system loss charges, VAT, and an energy tax embedded under the "government taxes" portion of their monthly bills.

He said the exact reduction in electricity bills would still have to be computed by the Energy Regulatory Commission (ERC), but preliminary discussions with agency officials indicate consumers could see significant savings.

"Kasi po, aalisan na po natin ang VAT. Ang VAT po is 12 percent. Ang systems loss is about 5 to 10 percent tas may government tax pa po. Pag inalis po natin itong lahat, malaki yung kabawasan (We're removing the VAT, which is 12 percent. System loss charges account for about 5 to 10 percent, and there's also an energy tax. If we remove all of these, consumers will see a significant reduction in their electricity bills)," Tulfo said.

The senator expressed confidence that Congress could approve the measures before the end of the 20th Congress, adding that President Marcos had instructed lawmakers to prioritize the proposals.

"Kakayanin po yan, may instruction na po ang Pangulo. So, aantayin na lang po natin yung counterpart ng bill na yan mula sa Congress (We can get it done. The President has already given the instruction. We're just waiting for the counterpart bill from the House of Representatives)," he said.

Tulfo said the proposals form part of a broader review of the 25-year-old EPIRA Law, which he argued stripped the government of its ability to intervene in electricity pricing.

He criticized the law's promise that deregulation and competition would lower electricity costs, saying consumers instead continue to bear increasing power rates while private industry determines prices.

The Senate Committee on Energy, which Tulfo chairs, is set to continue its hearings on proposed amendments to the EPIRA Law on Thursday, where power generators, distributors, and electric cooperatives have been invited to discuss the proposed removal of system loss charges, VAT, and the energy tax.

On another matter, Tulfo said the Senate Blue Ribbon Committee would not interfere with the complaint filed by Senator Panfilo Lacson before the Office of the Ombudsman over alleged ghost flood control projects in Taguig City.

Tulfo, however, said the committee remains open to investigating other complaints involving alleged anomalies in infrastructure projects and other government agencies if sufficient information is brought before the panel.