ERC Eyes VAT Removal in System Loss Charges

ERC to remove VAT on system losses

ERC eyes VAT removal in system loss charges

MANILA, Philippines — The Energy Regulatory Commission (ERC) plans to eliminate value-added tax (VAT) on electricity losses charged to consumers, which could save customers P6 billion. In its draft resolution, ERC aims to exclude system loss charges from the gross receipts of generation firms, distribution utilities, and the grid operator. READ: Lawmakers seek to cut VAT on system loss charge in power bills The regulator wants to classify these …

Mark Villar seeks to remove 12% VAT on power system losses

Senator Mark Villar is seeking to exempt electricity system loss charges from the 12 percent Value-Added Tax (VAT), arguing that consumers should not have to pay taxes on power they did not actually use.Villar filed Senate Bill No. 2392, which proposes amending Section 109 of the National Internal Revenue Code to remove VAT from system loss charges imposed by distribution utilities and electric cooperatives. The measure covers technical and non-…

ERC moves to scrap VAT on system loss charge ahead of Congress action

Abi Sarabia M., Philippine Canadian Inquirer August 12, 2026 The Energy Regulatory Commission (ERC) is working to remove the 12 percent value-added tax (VAT) on the system loss charge in […] The post ERC moves to scrap VAT on system loss charge ahead of Congress action appeared first on Philippine Canadian Inquirer.

ERC TO DRAFT RESO ON SYSTEM LOSS CHARGE BAN

The Energy Regulatory Commission (ERC) has proposed a draft resolution declaring the System Loss Charge as a government-mandated pass-through cost that should not form part of the gross receipts of Generation Companies (GCs), the National Grid Corporation of the Philippines (NGCP), and Distribution Utilities (DUs) for the purposes of the twelve percent (12%) Value-Added Tax (VAT) under the National Internal Revenue Code (NIRC) of 1997, as amende…