MANILA — Senator Risa Hontiveros has filed a measure seeking to exempt households consuming 150 kilowatt-hours (kWh) or less per month from paying value-added tax (VAT) on electricity, in a bid to ease the impact of rising power costs.

Hontiveros introduced Senate Bill No. 2093, or the proposed “Kuryente Relief Act,” following reports of widespread “bill shock” among consumers due to increasing electricity rates.

The senator said the proposed VAT exemption could reduce monthly electricity bills by around P250 to P300 for households classified as “energy poor,” including low to lower-middle income families.

“Dapat lang na palawakin ng pamahalaan ang tulong nito mula low income hanggang middle income households na kadalasan ay di naabot ng subsidy programs. Makakatipid ang maraming pamilya kung tatanggalin natin ang VAT sa bill ng mga kabahayang di naman kalakihan ang gamit sa kuryente,” Hontiveros said.

Under the proposed measure, residential consumers using up to 150 kWh per month would automatically be exempted from VAT, with the adjustment reflected directly in their billing statements without the need for application.

“On average, a family of five living in areas like Metro Manila, with minimum wage income, consumes around 100 to 150 kWh per month, since they only need a handful of appliances or have limited air conditioning use. Marami ang ganyang pamilya na makikinabang sa VAT exemption,” she noted.

Hontiveros pointed out that while existing mechanisms such as the lifeline rate offer assistance, these provide only “limited relief” as they are typically restricted to the most economically vulnerable households.

In contrast, she said the proposed bill would extend benefits to all households that meet the consumption threshold.

“Ngayong sumisipa sa taas ang singil ng kuryente, pati middle income families ay nahihirapan na sa bayad sa kuryente. Our tax and energy policies should be more fair and adapt to this concerning reality,” she said.

The senator added that the measure complements her earlier proposal, Senate Bill No. 2076, or the VAT Exemption on Systems Loss Act, which aims to remove VAT on systems loss charges to further reduce electricity costs.

“Puspusan nating isusulong itong Kuryente Relief Act at ibang reporma para matugunan ang daing ng mga consumers ngayong panahon ng krisis,” she said.