ILOILO CITY, Philippines — Power distribution firms under the Razon group operating in the Visayas have expressed support for the national government’s removal of the 12% value-added tax (VAT) applied to allowable system loss costs in power bills.
Primelectric Holdings Inc. President and CEO Roel Castro commended the prompt action taken by tax authorities, noting that the measure provides direct relief to end-users.
“This is a welcome move by the government, especially by the Bureau of Internal Revenue (BIR) in removing the VAT on system loss,” Castro said.
He emphasized that power customers should feel the financial adjustment without delay once implemented.
“We have to be thankful that the government acted on this quickly so consumers can realize the reduction as soon as possible,” Castro stated.
However, Castro highlighted that regional energy reliability remains a pressing issue, as the National Grid Corporation of the Philippines (NGCP) continues to issue red and yellow grid alerts due to supply deficits.
Echoing statements from the Department of Energy (DOE), he expressed optimism that major power stations will return online shortly to bolster supply.
“Hopefully, the baseloads will come back at the soonest possible time,” Castro added.
Primelectric manages distribution infrastructure across three Visayas islands, including MORE Electric and Power Corporation (MORE Power) in Iloilo, Negros Power in Negros Island, and Bohol Light in Bohol.
Addressing public concerns over supply stability, the utilities clarified that their role focuses on power distribution rather than generation.