Residential customers of Davao Light and Power Co., Inc. will be issued a one-time refund of P3.3759 per kWh for the bill they will receive from August 11 to September 10 due to over-recoveries of pass-through charges from January to June 2023.
A residential customer who consumes 200 kWh can receive a refund of P675 for this billing cycle.
The said refund is in compliance with the Energy Regulatory Commission (ERC) Resolution No. 14 of 2022, also known as “A Resolution Adopting the Revised Rules Governing the Automatic Cost Adjustment and True-Up Mechanisms and Corresponding Confirmation Process for Distribution Utilities,” which revises the rules on over and under recovery of pass-through charges collected by distribution utilities.
Pass-through charges come from generation and transmission which Davao Light collects and pays to power suppliers and the transmission operator, respectively. This does not include distribution, supply, and metering charges.
Over-recoveries, along with under-recoveries, are natural occurrences caused by the difference or time gap in the billing schedules and rates used by the power suppliers to bill Davao Light, and the billing schedules and rates used by Davao Light to bill its customers. The downtrend in the cost of electricity starting January until June this year resulted in over-recoveries in the amount collected by Davao Light for the 6-month period.
“This is good news to the customers of Davao Light,” said Rodger S. Velasco, Davao Light President and COO. “Following a power rate reduction in July, we will have a significantly lower electricity bill in the next month’s billing due to the refund of over-recoveries of pass-through charges. This will be deducted from the customer’s bill.”
Along with residential customers, other Davao Light customers will also get a refund, the amount of which will depend on what customer class they belong to.
Even with this refund, Davao Light emphasizes that this will only be applied to the said billing cycle. “This is just a one-time refund. After the August 11 to September 10 billing cycle, we will be back to our regular billing which is highly dictated by the cost of power in the world market. We reiterate that market prices are volatile thus monthly changes in the power rates are expected,” Velasco further explained.
Davao Light continues to encourage its customers to properly manage their power consumption by conserving energy to help lower their electricity bills.
Davao Light, an AboitizPower subsidiary, aims to provide its customers with a front-seat vantage point regarding its services, including the sourcing and pricing of its electricity. This is in line with the mission of the company to deliver at the most reasonable cost, safe and reliable electric service to the people and businesses it serves. (Davao Light press release)
