Senate President Win Gatchalian is urging immediate policy reforms in the power sector to reduce electricity costs, pointing to high energy rates as a key hurdle to reviving the country’s economic momentum amid global market volatility.
Gatchalian highlighted the need to lower power rates to provide meaningful economic relief to Filipino consumers and small businesses, especially following recent government data showing a sluggish second-quarter gross domestic product (GDP) growth rate of 2.3%. He noted that the country’s heavy dependence on imported fuel leaves domestic electricity rates vulnerable to international price spikes.
To address these cost pressures, Gatchalian filed Senate Bill No. 2350, which aims to eliminate the value-added tax (VAT) on electricity sales and prevent power distribution utilities from passing system loss charges onto consumers.
In addition, he filed Senate Resolution No. 581, seeking a formal inquiry into the lack of routine fuel cost audits for generation charges. The measure aims to tighten regulatory oversight on power producers and ensure transparency regarding pass-through fees reflected on end-user utility bills.