A December reduction in electricity rates will provide some relief to households, but consumer group CitizenWatch Philippines said Filipino consumers could have saved more if a key tax exemption under the Philippine Natural Gas Industry Development Act had been fully implemented.

CitizenWatch welcomed Manila Electric Company’s (Meralco) announcement of a PHP 0.3557 per kilowatt-hour decrease in electricity rates for December. For residential customers consuming 200 kilowatt-hours per month, Meralco estimated this would translate to around PHP 71 in savings, offering temporary relief amid rising household expenses during the holiday season.

However, the group said the rate cut falls short of the consumer benefits envisioned under Republic Act No. 12120, also known as the Philippine Natural Gas Industry Development Act. The law was passed to promote the use of natural gas in the country and includes provisions intended to reduce power generation costs, including a value-added tax (VAT) exemption on electricity generated from indigenous natural gas.

According to CitizenWatch, this VAT exemption remains unimplemented despite the law’s Implementing Rules and Regulations taking effect eight months ago. The group said that if the exemption had been applied as intended, residential customers could have saved an additional PHP 42 per month on their electricity bills, on top of the December rate reduction.

CitizenWatch Philippines is a consumer advocacy group that monitors public policy and utility issues, particularly those affecting household expenses and consumer welfare. In its statement, released on December 11, the group emphasized that electricity costs remain a significant burden for many Filipino families, making timely implementation of cost-reducing measures critical.

The group also pointed to a House of Representatives resolution directing the Committee on Energy to investigate the delayed implementation of the VAT exemption, signaling concerns within Congress over why the provision has yet to benefit consumers.

CitizenWatch urged the Department of Energy, the Bureau of Internal Revenue, and other relevant agencies to act with urgency, stressing that proper enforcement of existing laws is essential to ensure consumers receive the financial relief intended by legislation.

With electricity costs continuing to weigh heavily on household budgets, how much difference could full implementation of cost-cutting energy laws make for Filipino consumers?

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