Davao Light explains the price of imported fuel push electricity rates up for June-July electric bills

Davao Light and Power Co., Inc. customers are experiencing an increase in their June to July electric bills as the price of fuel in the world market pushed the generation rate up, which is the cost incurred to produce electricity, for the billing months of June and July to 6.9771 and 6.5671, respectively.

Davao Light, however, clarifies that its distribution charge remains at an average of P1.4257 per kilowatt-hour as approved by the Energy Regulatory Commission (ERC). Davao Light’s distribution charge has not increased since 2013.

The price increase of imported fuel brought the overall electric rate for residential customers to P11.1086 per kilowatt-hour in June and P11.6354 this July.


Additionally, the average overall rate for a typical household went up by 0.53 centavos or P106 per kilowatt-hour in July versus June for residential customers with average monthly electricity consumption of 200 kWh.

We ask for understanding from our customers. The generation rate has increased because of the global increase in fuel prices. We are affected because we source 50% of our power from non-renewable sources specifically diesel and coal. Since we source the other 50% from hydropower, a renewable and cheaper source, our overall rate, however, is not as high as other distribution utilities in the country,” said Davao Light President and Chief Operating Officer Rodger Velasco.

Under R.A. 9136, or the Electric Power Industry Reform Act (EPIRA) of 2001, the principal regulatory framework for the Philippine electricity industry, electric bills must be unbundled or itemized and segregated into various components of electricity charges for transparency. Three of these are the generation, transmission, and distribution charges.

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’s charge is the distribution charge only.


Davao Light encourages its customers to be prudent and efficient in the use of electricity. “It is high time we check our daily routines and activities and see where we can efficiently use electricity. We may not notice it but small changes in our electric use will have a big impact on our consumption and our monthly electric bills,” added Velasco.


For Davao Light customers’ reference, data on monthly rates are posted on the company’s website, www.davaolight.com. Energy conservation and safety tips are also available on the website, official Facebook page of Davao Light, and through its Facebook live program Kaalam Sa Kuryente every Wednesday, and guesting at Davao City Disaster Radio’s At Your Service program every Thursday.


For customer service concerns, Davao Light’s 24/7 Customer Contact Service is available through Facebook messenger, Twitter, email at davaolight@aboitiz.com, and at 229-3572, 655-3572 (Panabo), 0917-864-2793 or 0920-970-1357.