Power tax every step of the way to your home
Let us say you used 122 kwh of electricity last month.
1. A NAPOCOR or IPP plant produced that electricty.
Before it got out of the plant, you were slapped a tax of P62.50, or 51
2. The electricity was transported by a TRANSCO transmission cable to your
distribution utility like Meralco.
The government again taxed you, this time P12.94, or 11 centavos/kwh.
3. Meralco got the electricity, put it into their lines and delivered it to your
The government again taxed you, this time P22.72, or 19 centavos/kwh.
This even included a tax on a tax, the franchise tax, amounting to P5.67.
4. Since you also pay for the system loss (technical and administrative
The government again slapped you a tax, this time P10.33, or 8 centavos/kwh.
That is why, when you intend to flick on a switch, think twice, because once you
let the current pass to light your room, you will be paying all those taxes
enumerated above, and it is on a per hour basis!
Last April all those taxes amounted to 93 centavos/kwhr. It used to be about 70
centavos at the start of the Arroyo regime’s Epira.
Arroyo can easily reduce our electric bill if she wants to by removing the VAT
which was not there before 2006.