Win Gatchalian, JV Ejercito file bills to remove system loss charge 

Two more senators have filed measures seeking to remove the system loss charge in consumers' electricity bill following President Ferdinand Marcos Jr.’s call to amend the Electric Power Industry Reform Act (EPIRA).

In a statement issued Wednesday, Senate President Sherwin Gatchalian said he has filed Senate Bill 2350 or the System Loss Charge Abolition Act.

“Amid the Philippines’ highest average electricity rates in Southeast Asia in June 2026, removing unjust system loss charges is a concrete step toward lowering power costs,” Gatchalian said.

Gatchalian explained that the system loss charge accounted for 5% to 6% of a consumer's electricity bill.

From August 2025 to July 2026, the average monthly system loss charge for a household consumung 200 kWh was P148.95, which amounts to each consumer paying P1,787.38 over the past year, excluding value-added tax, he said.

For his part, Senator JV Ejercito filed a similar measure earlier on Tuesday. He also filed a separate bill seeking the removal of the 12% value-added tax on electricity.

“Madami na sa atin ang umiinda at nabibigatan sa mataas na singil sa kuryente kaya dapat lang alisin na ang mga charge na hindi naman dapat ipinapasa sa mga konsumer,” Ejercito said in a Facebook post.

(A lot of us are impacted by, and burdened by the high costs of electricity so the charge should be removed and it should not be passed onto the consumer.)

Earlier on Tuesday, Senate President Pro-tempore Vicente “Tito” Sotto III and Senator Erwin Tulfo filed separate legislative measures seeking to address electricity costs and provide tax relief.

Tulfo, chairman of the Senate Committee on Energy, filed two bills and a resolution aimed at reducing electricity charges and investigating system loss pass-on costs to consumers.

Meanwhile, Sotto filed a measure seeking to raise the annual income tax exemption threshold to P350,000 starting January 1, 2027.

Under Senate Bill No. 2338, or the proposed “Expanded Income Tax Exemption of 2026,” individuals earning P350,000 or less annually would be fully exempt from income tax.

“This measure aims to provide meaningful tax relief and allow Filipino workers to keep more of what they earn,” Sotto said.

One of the highlights from Marcos’ fifth SONA on Monday included an explicit call to reduce energy costs.

“We the people request, no we demand, for the immediate amendment of the EPIRA and to prohibit charging of system loss against consumers including the value added tax thereon,” Marcos said.

The system loss is the electricity that went missing during its travel from power plants to homes and businesses due to a number of different factors.

Under the 25-year old EPIRA, energy firms are allowed to pass the cost of missing electricity onto consumers.

EXPLAINER: What is system loss? Why is it included in your electric bill, and why does Marcos want it removed?

SONA 2026: Marcos wants system loss charges removed from power bills

— RSJ, GMA News