Imee urges Bongbong Marcos: Consider Devanadera as chief of energy dep’t

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Imee urges Bongbong Marcos: Consider Devanadera as chief of energy dep’t
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Senator Imee Marcos believes that current Energy Regulatory Commission chairperson Agnes Devanadera deserves consideration for the Energy secretary post, lauding her proposal to remove VAT from power generation charges. | GabrielLaluINQ

The older Marcos said that Devanadera’s suggestion to remove VAT from power generation charges is in line with her proposals under Senate Bill No. 219 — which she believes is long overdue.

“Removing the VAT on electricity charges will benefit not only household and commercial end-users. It will also make the Philippines more attractive to foreign investors who balk at the country’s high power rates, arguably the highest in Asia,” she added. As of now, all of the electric bill’s components — except for universal fees and feed-in-tariff allowance charges — have been subjected to VAT. This means that generation, transmission, distribution, and even the fuel used by some power generation companies have an additional 12 percent charge due to VAT.

“This should be considered because it has an immediate impact on customers, especially those with monthly consumption of 200 kilowatt-hours and below. It translates to a discount of as much as P100,” the ERC chief told reporters in a virtual media roundtable.According to Sen. Marcos, placing VAT on only one component would ease the load on consumers, especially with oil prices increasing as an offshoot of the Russia-Ukraine conflict.

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