Eastern Visayas Residents Cry for Relief as Escudero Backs VAT-Free Power

Posted on Jan. 17, 2026 at 3:36 pm

TACLOBAN CITY — In Tacloban and nearby towns, residents say power charges can often rival food expenses, especially for households with children, electric fans running day and night, or small appliances needed for home-based work. For businesses like sari-sari store, bakeries, internet cafés, and ice vendors, electricity costs can determine whether they thrive or barely survive.

Senator Francis “Chiz” Escudero aims to address this issue with his proposed Senate Bill No. 476. The bill seeks to completely remove the 12-percent value-added tax (VAT) on electricity, focusing solely on power as one of the main drivers of rising prices.

Electricity rates in Eastern Visayas are higher than in many other regions, sometimes even surpassing Metro Manila. This has left consumers puzzled and frustrated, especially considering Leyte hosts one of the country’s largest geothermal power plants.

Despite the presence of geothermal facilities in Leyte, consumers continue to face high rates due to various factors like supply contracts, transmission costs, and reliance on power sources outside the region.

Escudero believes that removing VAT on electricity is a direct way to provide much-needed relief to households and businesses. The proposal is a balanced approach that aims to ease financial pressure without compromising the government’s ability to meet its obligations.

Lower power costs would allow families to allocate more money towards essentials like food, education, and healthcare, while businesses could reinvest savings into growth and job creation.

Senate Bill No 476 would remove VAT from electricity sold by generation, transmission and distribution companies, as well as electric cooperatives and franchise holders of electric utilities serving Eastern Visayas.

Residents in Tacloban, Leyte and Samar and nearby provinces could see a significant decrease in their monthly bills, especially those still recovering from disasters, inflation and economic challenges.

Escudero urges his colleagues in the Senate to swiftly consider the proposal, emphasizing that high electricity prices continue to burden Filipinos. The hope for many in Eastern Visayas is that power generated in their region will finally become affordable, bringing relief in the form of lower numbers on their next electric bill.