Bacolod SP Backs ‘Kuryenteng Walang VAT Bill,’ Calls for Lower Electricity Costs

SP also OK’s climate resilience and emergency preparedness ordinance

The Sangguniang Panlungsod of Bacolod City has approved a resolution expressing its strong support for Senate Bill No. 266, otherwise known as the proposed “Kuryenteng Walang VAT Bill,” authored by Senator Paolo Benigno “Bam” Aquino IV.

Authored by Councilor Atty. Caesar Distrito, the approved resolution urges the Senate of the Philippines and the House of Representatives to prioritize and expedite the passage of legislation providing meaningful value-added tax relief on electricity.

Senate Bill No. 266 seeks to lower electricity prices by exempting from VAT the sale of electricity by generation, transmission, and distribution companies and electric cooperatives, as well as services rendered by franchise grantees of electric utilities.

“Electricity is no longer a luxury. It is an indispensable basic necessity that affects every Filipino household, school, hospital, government office, and business. Removing or substantially reducing the VAT burden on electricity can provide direct and meaningful relief to our consumers,” Distrito said.

The resolution recognizes the recent steps toward removing VAT from allowable system-loss charges as a welcome development. However, it emphasizes that broader VAT relief covering the electricity bill may result in substantially greater savings for consumers.

Based on estimates presented by Senator Aquino, removing VAT only from system-loss charges may reduce a consumer’s total electricity bill by approximately 0.5% to 0.8%. In comparison, removing VAT from the broader electricity bill could potentially result in an estimated reduction of approximately 8% to 10%, depending on the actual composition of the consumer’s bill and the final provisions and implementing rules of the proposed law.

For a household consuming approximately 200 kilowatt-hours per month, the proposed VAT exemption could result in estimated savings of ₱237 to ₱296 monthly, or approximately ₱2,844 to ₱3,552 annually.

“These potential savings can be used by families for food, medicines, education, transportation, and other essential needs. For many households, a few hundred pesos saved every month can already make a meaningful difference,” Distrito explained.

The approved resolution also highlights the potential benefits of the proposed measure for micro, small, and medium enterprises, whose electricity expenses form a significant part of their operating costs and influence the prices of goods and services.

According to Distrito, reducing the tax component of electricity bills may help lower business expenses, protect jobs, encourage investments, stimulate local economic activity, and provide some relief from the continuing increase in the cost of living.

“Bacolod is a growing highly urbanized city with thousands of households and businesses dependent on affordable and reliable electricity. Any national policy that can responsibly lower power costs will directly benefit our people and our local economy,” he added.

SP Also OK’s Climate Resilience and Emergency Preparedness Ordinance

The Sangguniang Panlungsod of Bacolod City has approved on Third and Final Reading the proposed “Bacolod Climate Resilience and Emergency Preparedness Ordinance of 2026,” authored by Councilor Atty. Caesar Z. Distrito, DPA, and co-authored by Councilor Psyche Marie Sy.

The ordinance seeks to protect Bacolod City and its residents from increasing climate-related risks by institutionalizing proactive, science-based, and community-centered policies on disaster preparedness, climate-change adaptation, and emergency response.

“We Recognized that Bacolod continues to face escalating threats from flooding, extreme heat, climate variability, and severe weather disturbances, the ordinance aims to minimize the loss of lives and property by establishing responsive and localized mechanisms for preparedness, prevention, mitigation, and emergency response.” Explained by Councilor Caesar Distrito.

Among its key provisions is the requirement for all City Government departments and offices to incorporate appropriate climate-change adaptation and disaster-risk-reduction measures into their respective annual plans and budget proposals.

The ordinance also directs the City Disaster Risk Reduction and Management Office (CDRRMO) to establish localized flood early-warning systems in flood-prone barangays. Meanwhile, the City Health Office is tasked with formulating heat-index emergency protocols, including appropriate advisories on the suspension of classes, the establishment of hydration stations, and the issuance of timely public-health warnings during periods of extreme heat.

To strengthen the City’s overall emergency preparedness, the measure further requires the conduct of annual evacuation-readiness audits. These audits will assess evacuation facilities based on sanitation, emergency power supply, accessibility, safety, and other essential standards.

The CDRRMO shall serve as the lead implementing agency in coordination with the City Engineer’s Office, City Health Office, Department of Social Services and Development, other concerned City Government offices, barangays, and relevant stakeholders.

“This ordinance represents a comprehensive and long-term commitment to the safety and future of every Bacolodnon. By institutionalizing climate-responsive budgeting, localized flood early-warning systems, heat-index emergency protocols, and annual evacuation-readiness audits, we are doing more than preparing for storms and disasters, we are strengthening our City’s capacity to anticipate, withstand, and recover from the growing and increasingly unpredictable effects of climate change,” Councilor Pao Sy said.*