MANILA, Philippines — Senate President Sherwin Gatchalian is calling for urgent reforms in the country’s power sector, saying lower electricity costs are necessary to provide relief to Filipino families and small businesses and help revive an economy facing slower growth and rising exposure to global energy shocks.
In a statement on Saturday, August 22, Gatchalian said electricity costs must be brought down if the government wants to stimulate economic activity and ease the financial pressure on households and enterprises.
“If we want to revitalize our economy and give real financial relief to Filipino families and small businesses, we need to bring down the cost of electricity,” Gatchalian said, as reported by GMA News.
The call comes as the Philippine economy recorded only 2.3% growth in the second quarter of 2026, according to the latest economic figures cited by Gatchalian and other reports.
Why electricity prices are back in the spotlight
Gatchalian pointed to generation charges and system-loss charges as major components of electricity bills that require greater transparency and stronger justification.
Generation charges represent the cost of producing electricity, while system-loss charges cover electricity lost in the distribution system. Both are reflected in consumers’ bills, making them particularly important in discussions about how to reduce electricity costs.
Gatchalian has also warned that the Philippines’ dependence on imported oil leaves consumers vulnerable to swings in global energy prices. When international fuel prices rise, the impact can eventually be felt in electricity and transportation costs.
The issue has already prompted action in the Senate.
Gatchalian previously filed Senate Bill No. 2350, which seeks to prohibit distribution utilities from passing system-loss charges on to consumers and remove the value-added tax on electricity sales.
He also filed Senate Resolution No. 581, seeking an investigation into the absence of regular fuel-cost audits amid rising generation charges. The proposal is intended to strengthen regulatory oversight and determine whether costs being passed on to consumers are properly justified.
Senate also examining the 25-year-old EPIRA
The push comes as lawmakers separately revisit the Electric Power Industry Reform Act, or EPIRA, the landmark law enacted in 2001 that restructured and privatized much of the Philippine electricity industry.
A Philippine News Agency report in July said the Senate had begun reassessing whether EPIRA has delivered its promise of improving competition and making electricity more affordable. Lawmakers noted that Philippine consumers continue to face expensive electricity while some areas experience recurring power interruptions.
Gatchalian has argued that a strong and effective Energy Regulatory Commission (ERC) is particularly important because major parts of the power industry are now operated by private entities.
He has also supported stronger regulatory authority and penalties, along with measures that could prevent electricity-rate increases from hitting consumers all at once during periods when fuel and transportation costs are already elevated.
The problem goes beyond one charge on the electric bill
Recent developments show that generation costs and power-plant reliability remain major concerns.
In May, Gatchalian urged the ERC to investigate recurring forced outages at power plants after the Visayas grid was placed under yellow alert. PNA reported that 14 power plants had been on forced outage since the beginning of that month, raising concerns about electricity supply and potential price increases.
Gatchalian has also advocated a broader transition toward renewable energy. The Philippine Information Agency previously reported that he had pushed for an energy-transition framework, citing the country’s heavy dependence on coal and noting the potential for renewable energy to reduce exposure to volatile fossil-fuel prices.
The administration itself has also acknowledged the pressure created by electricity costs.
During his 2026 State of the Nation Address, President Ferdinand Marcos Jr. called for changes to the way system losses are charged to consumers and urged Congress to amend EPIRA. He also pushed for legislation to make household solar panels and battery-storage systems easier and more affordable to install.
That means the debate over electricity prices is no longer limited to one senator’s proposal. It is becoming part of a much broader discussion about how the Philippines produces, distributes and pays for electricity.
What could change for consumers?
For ordinary households, the most important question is whether these proposed reforms will eventually translate into lower monthly electricity bills.
But that outcome is not automatic.
Gatchalian’s proposals still require legislative action, regulatory review and, in some cases, changes to existing laws and rules. Eliminating or changing a particular charge does not necessarily mean electricity rates will immediately fall by the same amount.
What is clear is that lawmakers are increasingly focusing on the costs being passed through to consumers, the auditing of fuel-related expenses, power-plant reliability and the country’s dependence on imported energy.
And with economic growth slowing to 2.3% in the second quarter, the pressure to find ways to make electricity more affordable is becoming even harder for policymakers to ignore.
For Filipino consumers, the bigger question now is not simply whether electricity prices are too high — but whether the reforms being discussed in Congress can finally change how those costs reach the monthly bill.
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