Philstar.com
May 7, 2026 | 8:10am
Electricity bills are surging for Filipino households as global energy prices climb, even as dozens of countries cut energy taxes amid uncertainties around the Middle East conflict.
MANILA, Philippines — The Department of Energy backed proposals to suspend, reduce or remove value-added tax on electricity, as rising power bills and a fresh inflation spike intensify calls for consumer relief.
In a statement on Tuesday, May 5, the DOE said it is ready to provide technical input on the energy-sector impact of any tax measure.
"Consistent with its mandate to ensure secure, reliable, and affordable electricity, the DOE supports measures that can ease the burden on Filipino households and businesses," the agency said.
While it respects that tax policy falls under the Department of Finance and Congress, the department said it is ready to provide technical input on the energy-sector impact of any proposed measure.
“At the same time, any tax measure must be carefully evaluated by the country’s economic managers, particularly the Department of Finance, and Congress,” the agency said.
The statement came as inflation surged to 7.2% in April, the fastest pace since March 2023, from 4.1% in March and 1.4% in April 2025.
The government's data agency attributed the spike to higher food, transport and household costs, with core inflation rising to 3.9%.
The pressure was worse for the poorest Filipino households. Inflation for the bottom 30% income group climbed to 8.5% in April from 4.2% in March, driven by food, transport and utility costs.
Power bills under scrutiny
Electricity bills have also become a focus of consumer frustration. Households and consumers had reported higher and even doubled power bills from March to April, with monthly charges reflecting generation and transmission costs, taxes and policy charges.
The rise in power costs for families and businesses stood in contrast to newly subsidized, reduced or suspended levies globally as supply is disrupted by the conflict between Iran and the United States.
The DOE said electricity affordability should also be pursued through longer-term energy-sector reforms. This would include "efficient generation, improved grid reliability, stronger competition and responsible energy use."
“Proposals must be weighed alongside long-term measures that ensure stable, sustainable, and affordable power for consumers,” the agency said in the same statement.
