Higher generation charge increases Davao Light rate by P0.0957/kWh in December

The generation charge for December 2024 saw a slight increase, pushing Davao Light and Power Co., Inc.’s (Davao Light) overall residential electricity rate up by P0.0957 per kilowatt hour (kWh).

This adjustment brings the overall rate to P9.2058/kWh, compared to P9.1101/kWh in November. The higher rate applies to residential bills received from December 12, 2024, to January 10, 2025.

The increase is attributed to high electricity prices in the Philippine Wholesale Electricity Spot Market (WESM) in Mindanao, a platform where electricity is traded as a commodity. This rise in WESM prices directly impacted the generation charge, a major component of the overall electricity rate.

“For a household consuming an average of 200 kWh monthly, this translates to an increase of approximately P19.14 in their current bill,” said Fermin Edillon, Head of Davao Light’s Reputation Enhancement Department.

Understanding the Charges

The generation charge, which covers payments to power suppliers, and the transmission charge, which goes to the transmission operator, are considered pass-through charges. These are merely collected by Davao Light and remitted to the respective entities.

Meanwhile, the distribution charge, the only portion of the rate that goes to Davao Light, has remained unchanged since its approval by the Energy Regulatory Commission (ERC) in 2013.

Energy Conservation and Safety Tips

Davao Light emphasizes the importance of mindful electricity use, particularly during the holiday season when power consumption historically rises. The company also reminds its customers to prioritize electrical safety.

“We urge our customers to be vigilant about electrical safety during gatherings and events this season,” Edillon added. “Practicing safety measures and conserving energy will help ensure a joyful and meaningful Christmas and New Year.”

Customers are encouraged to visit Davao Light’s official Facebook page (@DavaoLightOfficial) for electrical safety and energy conservation tips. The complete monthly rates are also available on their website, www.davaolight.com.

Commitment to Service

As an AboitizPower distribution utility, Davao Light is committed to providing safe and reliable electricity at the most reasonable cost. The company aims to keep customers informed about its services, including the sourcing and pricing of electricity, in line with its mission to serve the community efficiently and transparently.