POWER rates of AboitizPower subsidiary Davao Light and Power Company (Davao Light) for residential and commercial consumers have decreased by around P2 per kilowatt-hour (kWh) in the month of October 2022.
Based on the summary of rates for the billing month October, the charges of residential consumers is at P10.80/kWh.
This is a decrease from the billing month of September, which is at P13.01/kWh.
Notably, there has been an increase in rates for residential consumers since May this year.
Rate for May is at P10.55/kWh, which then increased to P11.11/kWh in June, P11.64/kWh in July, and P13.29/kWh in August.
The increase in power rates could have been due to an increase in the generation charges and system loss charges.
Generation charge started to increase in May, which was at P6.57/kWh, then in June which was at P6.57/kWh, P6.98/kWh in July, P8.27/kWh (August). It started to decrease in September at P8.04/kWh, and in October at P6.37/kWh.
System loss charge also increased starting in May which is at P0.59/kWh, for June is at P0.66/kWh, P0.69/kWh in July, and P0.80/kWh in August. While it started to lower beginning September with P0.78/kWh, and in October with P0.65/kWh.
SunStar Davao is still trying to reach out to DavaoLight for their statement on the decreasing power rates.
Meanwhile, Davao Light Reputation Enhancement Department manager Fermin Edillon told SunStar Davao in a previous interview that 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 of generation rate.
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.
The utility official said the generation rate has increased because of the global increase in fuel prices as the power distributor sources 50 percent of its power from non-renewable sources, like diesel and coal.
Various factors had made gas and coal more expensive, including Russia’s invasion of Ukraine which has disrupted its value chain.
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.
Davao Light is trying to cushion the spike in generation rates by getting their sources in renewable resources, he said.
The power distributor sources around 50 percent of its supply from hydropower plants. This allows the power distributor to keep its current rates lower compared to other areas in the country.
Rodger Velasco, Davao Light President and Chief Operating Officer, also said they are also scouting for other alternative sources after the prices of coal had exponentially increased. RGL
