ABOITIZPOWER subsidiary Davao Light and Power Company (Davao Light) said the decrease in the overall power rate on their electric bills is due to cheaper power supply
In a press release, Davao Light said its customers will notice a decrease of P2 in the power rate on their electric bills due to the reduction mainly in the generation rate for the month of October.
From the P8.0342 generation rate for the September bill, it is now at P6.3678 for October, bringing the total power rate this month to P10.8028 from P13.0101 last September.
For a typical household with average monthly electricity consumption of 200 kWh, this translates to a reduction of P441 from the previous bill.
Davao Light Reputation Enhancement Department manager Fermin Edillon told SunStar Davao in a phone interview Monday, October 17 that they were able to scout additional power supply from National Power Corporation (NPC) and Power Sector Assets and Liabilities Management Corporation (PSALM), which is cheaper.
“Kana siya nga reduction, kung imo na tan-awon for a typical household with an average monthly consumption of 200 kilowatt-hour, this will be a reduction of P441 from the previous bill nila,” Edillon said.
In a previous interview, he said their consumers recently experienced an increase in their recent electric bills as the price of fuel in the world market pushed the generation rate up. The recent weakening of the Philippine peso also had something to do with the increase in the generation rate.
Davao Light earlier informed its customers that the increase in power rates which was first felt last June was mainly due to the rise in the generation rate as a result of the price increase of imported fuel, particularly coal. Rising energy demands and the continuing conflict between Russia and Ukraine, among others, are contributing to the rise in fuel prices.
The company sources 50% of its power requirements from non-renewable sources such as coal which increased eightfold in price. The other 50% are from renewable sources such as hydropower which is not affected by the increase in imported fuel prices.
Fermin said generation charge or the cost of power that distribution utilities like Visayan Electric Company and Davao Light purchase from independent power producers and producers it has power supply agreements with, contribute a major share on the bills.
Edillon, meanwhile, clarified that its distribution charge remains at an average of P1.43/kWH as approved by the Energy Regulatory Commission (ERC). Davao Light’s distribution charge has not increased since 2013.
The generation and transmission charges are pass-through charges that Davao Light only collects but does not earn from. Being a power distribution utility, Davao Light earns from the distribution charge only.
Power rates as reflected in Davao Light monthly bills and posted on the company’s website are divided into 4 major components: Generation and Transmission, Distribution, Subsidies and Other Charges, and Government Charges and Taxes. Generation and transmission charges are pass-through charges that Davao Light collects and pays to power suppliers and the transmission operator, respectively.
Rodger Velasco, Davao Light President and Chief Operating Officer, said in a previous interview that the power company has aimed for a well-balanced power mix and maintained the “50-50 power mix of renewable and non-renewable resources.”
Velasco said this cushioned the otherwise high impact of the world market price of coal on the overall power rate of Davao Light. RGL
