Electricity consumers will soon see a clearer and more transparent breakdown of charges in their monthly bills following the Energy Regulatory Commission’s (ERC) adoption of Resolution No. 28, Series of 2026, which establishes a new billing format for all Distribution Utilities (DUs).
The new format requires DUs to clearly and separately reflect government-mandated pass-through charges, including the system loss charge within the allowable cap, that are not subject to Value Added Tax (VAT).
The Resolution follows the Bureau of Internal Revenue’s (BIR) issuance of Revenue Memorandum Circular No. 097-2026 on 14 September 2026, which recognized the ERC’s declaration that system loss is a government-mandated charge excluded from gross sales for VAT computation, provided that the allowable system loss charge is separately identified in the billing statement, invoice, or similar document.
“With this new billing format, consumers will be able to see more clearly what they are paying for, while ensuring that VAT is not imposed on the allowable system loss charge.”
“Every peso in an electricity bill matters to Filipino families. With this new billing format, consumers will be able to see more clearly what they are paying for, while ensuring that VAT is not imposed on the allowable system loss charge,” ERC Chairperson and CEO Atty. Francis Saturnino Juan said.
For consumers, this means greater transparency in their electricity bills and relief from VAT previously applied to the allowable system loss charge.
The new format will make it easier for consumers to distinguish between charges subject to VAT and government-mandated pass-through charges excluded from VAT.
“This is part of the ERC’s continuing effort to make electricity charges more transparent, understandable, and fair to consumers.”
“This is part of the ERC’s continuing effort to make electricity charges more transparent, understandable, and fair to consumers,” Juan added.
The measure also provides DUs with a uniform billing format, addressing stakeholders’ requests during the 25 August 2026 public consultation for a consistent presentation of these charges across all electricity bills.
Resolution No. 28, Series of 2026 supersedes the billing format previously prescribed under ERC Resolution No. 20, Series of 2005.
It will take effect immediately following its publication in a newspaper of general circulation or in the Official Gazette.
