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DOE STATEMENT
Date published: May 6 2026 09:30 PM
MEDIA RELEASE
06 May 2026
DOE STATEMENT
The Department of Energy (DOE) remains focused on pursuing practical, responsible, and long-term measures to make electricity more affordable and reliable for Filipino consumers.
The Department of Energy (DOE) emphasizes that any VAT-related measure must be carefully studied to ensure that the intended savings are fully and directly passed on to households, businesses, and other end-users.
Under the current VAT system, electricity is subject to a pass-through tax structure where companies along the power supply chain—from generation to distribution—claim offsets between the VAT they pay on their inputs and the VAT they collect from consumers. Removing or adjusting VAT on electricity therefore requires a thorough evaluation of how these changes will flow through the entire supply chain, and whether the resulting savings will be fully and directly felt by consumers at the household and business level.
The DOE stands ready to provide technical inputs to economic managers and Congress to help ensure that any policy intervention will result in genuine consumer benefit while protecting the continued delivery of essential public services.
Beyond tax-related proposals, the Department continues to advance measures that directly address electricity prices amid the Middle East conflict. Through its ongoing interventions, the DOE has helped avert a potential ₱7.00 per kilowatt-hour increase in electricity prices, providing immediate relief to consumers.
Looking ahead, the DOE remains committed to long-term solutions that will make electricity more affordable and reliable by expanding power supply, accelerating renewable energy development, and strengthening the country’s grid infrastructure.
Lasting affordability must be built on stable supply, cleaner energy, stronger infrastructure, and sound policy.
The DOE said it will continue working with Congress, economic managers, regulators, industry players, and consumer groups to ensure that power sector reforms deliver real, sustainable, and inclusive benefits to the Filipino people. ###