Senior Deputy Majority Leader Senator Joseph Victor "JV" Ejercito has filed two bills seeking to reduce electricity costs by removing the system loss charge passed on to consumers and abolishing the 12-percent value-added tax (VAT) on power bills.

Ejercito filed Senate Bills Nos. 2342 and 2343 following President Ferdinand Marcos Jr.'s call during his fifth State of the Nation Address (SONA) for measures to bring down electricity prices.

The senator said Congress should act swiftly to ease the burden on Filipino households, citing the country's high electricity rates compared with those of its Southeast Asian neighbors.

"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, at tiyaking mas efficient ang power sector," Ejercito said.

Senate Bill No. 2342, or the Consumer Protection Against System Losses Act, seeks to prohibit distribution utilities and electric cooperatives from charging consumers separately for system loss.

"Dapat ang binabayaran lang ng mga konsumer ay ang kuryenteng aktuwal nilang nagagamit at serbisyong kanilang natatanggap. Kung hindi mo nagamit ang kuryente, hindi mo dapat bayaran," he said.

System loss refers to electricity lost during transmission and distribution due to technical inefficiencies and non-technical causes, such as illegal connections and meter tampering. Under existing regulations, distribution utilities may recover system losses from consumers within limits set by the Energy Regulatory Commission (ERC).

The proposed measure also directs the ERC to amend its implementing rules within 90 days from the law's effectivity to remove the system loss charge as a separate item in electricity bills.

Meanwhile, Senate Bill No. 2343 seeks to remove the 12-percent VAT imposed on electricity consumption.

"Sa pagtanggal ng VAT sa kuryente, direkta nating mapapababa ang gastusin ng mga pamilya at negosyo. Ang budget na matitipid puwede na nilang ilaan sa pagkain, gamot, edukasyon at iba pang pangunahing pangangailangan," Ejercito said.

Ejercito urged Congress to immediately pass the two measures, saying they would directly reduce electricity costs and provide relief to consumers.