PASAY CITY—The Senate Committee on Ways and Means launched a probe on May 18, targeting the value-added tax (VAT) imposed on electricity bills. 

Lawmakers demanded answers as to why Filipino households face soaring power rates despite enduring frequent rotational brownouts. 

The investigation follows a wave of public complaints from consumers who are tired of paying premium prices for unreliable service and even being taxed for electricity they never receive.

Committee Chair Sen. Pia Cayetano expressed deep frustration over the ongoing energy crisis, noting that skyrocketing rates coupled with unstable power supply now threaten lives. 

“The situation highlights a difficult reality faced by Filipino consumers. Many are paying increasingly high electricity rates while simultaneously experiencing concerns over the reliability and stability of power supply.” The Committee Chairperson stressed.

Cayetano highlighted the tragic death of an 80-year-old father in Laguna during a recent power outage to underscore the urgency of the situation. 

She stressed that electricity is no longer just a basic utility, but a critical lifeline essential for education, health, and daily survival.

“For many Filipinos, electricity is no longer a simple utility, simply a utility is essential to education, livelihood, health, communication, and daily survival.” Senator Pia Cayetano pointed out.

During the hearing, senators thoroughly reviewed potential reforms to protect consumers, focusing heavily on VAT treatment, subsidies, and system losses. 

Grid alerts in Luzon and Visayas have triggered widespread power interruptions, prompting lawmakers to question the fairness of current billing structures. 

The committee aims to restructure these charges to ensure the public only pays for stable, actual power delivered to their homes.

Meanwhile, Senate President Allan Peter Cayetano back fired on the allegations that the government is a bystander on the drastic increase of electricity rates.

“Hindi totoo na may delays ang ating administration. Given the present crisis, it’s actually an opportunity… [We’re in ] crisis, let’s find a way to get something done.” The Senate President stressed out.

Adding to the scrutiny, Sen. Rodante Marcoleta argued that system loss charges should be treated strictly as business risks by energy companies rather than being passed on to consumers. 

Citing a Supreme Court ruling, Marcoleta stated that any expense that does not benefit the consumer is unjustified and inequitable. 

He declared that charging citizens for electricity that never reaches their households directly violates consumer protection laws.