Davao Light and Power Company

Customers of Davao Light and Power Co., Inc. will notice a decrease of two (2) pesos in the overall power rate on their electric bills as a result of a reduction mainly in the generation rate for the month of October. The complete data for October power rates are now available at www.davaolight.com.

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. This is due to high drawings of cheaper power supply from NPC/PSALM. For a typical household with average monthly electricity consumption of 200 kWh, this translates to a reduction of P441 from the previous bill.

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.

Meanwhile, the distribution charge which is the only charge of Davao Light remains at an average of P1.4257 per kilowatt-hour as approved by the Energy Regulatory Commission (ERC). This charge has not increased since 2013.

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. Davao Light has long aimed for a well-balanced power mix and maintained the 50-50 power mix of renewable and non-renewable resources. This cushioned the otherwise high impact of the world market price of coal on the overall power rate of Davao Light.

 

Davao Light encourages its customers to continue to be prudent and efficient in the use of electricity. One way to lower energy consumption is by limiting the use of heating and cooling devices and appliances that consume high energy.

Davao Light, an AboitizPower subsidiary, is committed to delivering at the most reasonable cost, safe, and reliable electric service to all customers in its franchise area in the cities of Davao and Panabo and the municipalities of Carmen, Dujali, and Sto. Tomas in Davao del Norte.