MORE Power President and CEO Roel Castro welcomed the Bureau of Internal Revenue’s move to remove value-added tax (VAT) on system loss charges, saying the measure could provide some relief to electricity consumers amid ongoing power supply challenges in the Visayas.
Castro acknowledged that the reduction may only account for a small portion of a consumer’s total monthly electricity bill, but said any measure that helps bring down power costs is a positive development.
“This is a welcome move by the government, especially by the Bureau of Internal Revenue, by removing the VAT on system loss. We have to understand, this is a certain percentage of a certain percentage. We have to be thankful that government acted on this quickly so consumers can realize the reduction as soon as possible,” Castro said.
Generation supply remains bigger concern
While the VAT adjustment could reduce a portion of electricity charges, Castro said the more pressing concern remains the availability of power supply from generation companies.
Recent grid conditions in the Visayas have resulted in manual load dropping (MLD), which is implemented by distribution utilities upon instruction from the National Grid Corporation of the Philippines (NGCP) when available supply is insufficient to meet demand and grid stability needs.
For several weeks, distribution utilities including MORE Power, Negros Power and Bohol Light have faced consumer complaints over power interruptions associated with MLD.
Castro said he remains optimistic that generating units currently unavailable will gradually return to service, helping improve supply conditions in the Visayas.
“We are really optimistic na dapat babalik siya. As per DOE, may babalik ng September. May different dates na nandoon per official. Hopefully, the soonest possible time, yung baseloads mabalik man lang,” Castro said.
DOE: Distribution utilities ‘least guilty’
Department of Energy Secretary Sharon Garin, meanwhile, said distribution utilities should not bear most of the blame for the current power situation.
In an interview with DZMM, Garin said concerns in both the generation and transmission sectors need to be addressed, including longstanding issues in the power industry.
“No, they receive what they can receive. They try naman. Iba naghahanap ng paraan. Distribution is the least guilty in this place,” Garin said.
Distribution utilities such as MORE Power deliver electricity to consumers but depend on available generation and transmission capacity. During periods of insufficient supply, they may be instructed by NGCP to implement load dropping in designated areas to help maintain grid stability.
Castro expressed hope that ongoing discussions and inquiries into the power situation would result in both immediate interventions and longer-term solutions for the Visayas.
Based on data released by the DOE and NGCP, Therma Visayas Inc. Units 1 and 2 are expected to return to service in September, while Panay Energy Development Corporation (PEDC) is expected to return by the end of October. Other baseload generating plants in Mindanao are also expected to contribute additional supply.
The return of these generating facilities is expected to improve available power supply and help ease pressure on the Visayas grid.
