MANILA – The BPO Industry Employees Network (BIEN) called on the government to remove the value-added tax (VAT) on electricity and abolish what it described as unjust pass-through charges, saying Filipino workers continue to suffer from high power rates amid rising living costs.

In a statement, BIEN criticized the continued increase in electricity prices, citing recent Meralco data showing residential electricity rates at around PHP 14.35 per kilowatt-hour for a typical household.

BIEN Vice President Jupeter Delda said workers are being burdened not only by high electricity costs but also by additional taxes and charges imposed on consumers.

“Electricity is a basic necessity, not a luxury. There is absolutely no justification for taxing workers every time they keep the lights on in their homes. The VAT on electricity must be immediately removed, and unjust charges like system loss and lifeline subsidies should no longer be passed on to consumers,” Delda said.

Delda argued that charges such as the System Loss Charge and Lifeline Discount subsidy should instead be shouldered by the government and utility companies as part of their public service responsibilities.

“It is unjust that workers are paying for inefficiencies in power distribution through system loss charges. It is equally unacceptable that social welfare measures such as lifeline discounts are funded by paying consumers instead of being directly subsidized by the state,” he added.

The labor group said the additional charges further affect workers whose incomes are already strained by inflation and the increasing prices of basic commodities.

BIEN also highlighted the impact on workers in the business process outsourcing sector, especially those under remote and hybrid work setups, saying electricity costs have effectively become part of workers’ labor expenses.

“For thousands of BPO workers working from home, every increase in electricity rates and every added tax or pass-through charge is effectively a wage cut. Workers are subsidizing both business operations and a deeply flawed energy system while corporations continue to maximize profits,” Delda said.

The group urged the government to eliminate VAT on electricity, remove pass-through charges, directly fund social welfare discounts through public funds, and require power distributors to absorb system losses.

“The government cannot continue allowing private utilities to profit while workers shoulder the burden of corporate inefficiency and state neglect. Workers deserve affordable electricity and a power system that serves public welfare instead of corporate greed,” Delda said.

BIEN also reiterated its call for higher wages, stronger labor protections, and government intervention to address electricity pricing and protect workers’ economic welfare.