THERE has been a slight increase in the power rates of the Davao Light and Power Company, an AboitizPower subsidiary, following an increase in the generation charge, which has been affected by global factors.
Rodger Velasco, Davao Light President and Chief Operating Officer, in an interview with SunStar Davao on July 8, 2022, said the Ukraine-Russian Conflict has increased the price of fuel, which also increased the price of oil and coal being imported by the Philippines to power its oil-fired power plants and coal-fired power plants.
“We use oil, we use coal so nagataas gyud siya, nagtaas siya’g gamay (We source our power from oil-fired and coal-fired, therefore we had a slight increase in power rates),” Velaso said.
As of June 2022, Davao Light sources 53 percent of its power supply from coal-fired power plants like the 300 MW baseload power plant Therma South Inc. in Toril, Davao City and the 300 MW San Miguel Coal-Fired Power Plant in Malita, Davao Occidental. Meanwhile, Davao Light only sources 0.7 percent of its power supply from oil-fired power plants – 100 MW power barge of Therma Marine, Inc. and 100 MW diesel power plant of West Mindanao Power Corp.
Fermin Edillon, Reputation Enhance Department Head of Davao Light, said in 2021, the power rate was around P9 per kilowatt-hour (kWh). In May 2022, it increased to P10/kWh and by June it was at P11/kWh.
However, Velasco said Davao Light remains to have one of the cheapest power rates in Mindanao.
“If you try to research the prices of the neighboring utilities in Mindanao, we’re still one of the cheapest, why? Because we contract hydro which is not subjected to world prices of fuel, we also contract with PSALM (Power Sector Assets and Liabilities Management Corp) which is a fixed rate also, so kung mosaka man gani ang mga fuel prices ang impact nato dili kaayo dako (so if there’s an increase in fuel prices, its impact in prices is not very high),” Velasco said.
Davao Light sources around 46 percent of its power from hydroelectric plants – the Agus-Pulangi Hydroelectric Complex and the Hedcor power plants.
Meanwhile, for the past 11 years, Velasco said the distribution rate has been the same.
“Tulo man gud ka component ang rate nato, we have generation, transmission and distribution. Ang distribution talaga hindi nag-increase (There are three components of our rates namely generation, transmission, and distribution which we have an increase),” Edillon said
Edillon said they have been transparent with their clients when it comes to changes.
“We are transparent pud sa among bill, makita ni nimo sya sa among website, per month makita nato diha ang kilowatt per hour rate (We are transparent when it comes to our bill charges, you can see it on our website, you can see the kilowatt per hour rate per month),” Edillon said.
As of today, Davao Light serves clients in Davao City and some parts of Davao del Norte particularly in Panabo City, Municipality of Dujali, Municipality of Carmen and Municipality of Sto. Tomas.
Davao Light reminded their clients to conserve energy through prudent use of energy-intensive equipment or appliances such as aircon and refrigerators.
“As much as possible kung ma-adjust nila to 25 to 26 degrees ang ilahang [temperature] (if they adjust the temperature of at least 25-26 degrees) then they can conserve more energy and save on the cost,” Velasco said. KSD