Rising fuel prices drive power rates up

Pixabay photo
Pixabay photo

Customers of AboitizPower subsidiary Davao Light and Power Company (Davao Light) are experiencing an increase in their recent electric bills as the price of fuel in the world market pushed the generation rate up, an official from the AboitizPower subsidiary said.

Davao Light Reputation Enhancement Department manager Fermin Edillon told SunStar Davao in a phone interview on Thursday, September 8 that there has been an increase in the generation rate since June this year.

Based on the summary of rates for the billing month of August, generation rate is at P8.27 per kilowatt-hour (kWh).

"Affected ni sila (The generation rate is affected) by the rate of fuel sa (in the) world market," Edillon said.

The official said the generation rate has increased because of the global increase in fuel prices as the power distributor sources 50 percent of its power from non-renewable sources, like diesel and coal.

However, Edillion said the spike in generation rates is being cushioned by renewable resources. The power distributor sources around 50 percent of its supply from hydropower plants. This allows the power distributor to keep its current rates lower compared to other areas in the country.

"Ubos gyud ta. Ang uban gani, nagadagan sila sa (Our power rate is cheaper. Other power companies are charging) P17 up to P20 per kilowatt-hour," the official said.

Edillon, however, clarified that its distribution charge remains at an average of P1.43/kWH as approved by the Energy Regulatory Commission (ERC). Davao Light’s distribution charge has not increased since 2013.

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 earns from the distribution charge only.

Some Davao Light consumers, over the past days, complained online about their recent billing, which is higher compared to the past month.

Edillon said Davao Light encourages its customers to be prudent and efficient in the use of electricity, by checking their daily routines and activities and seeing where they can efficiently use electricity.

"Ang atoang ginaingon sa atong mga customers, mas maayo, di lang tan-awon sa bill, but tan-awon pud ilang consumption sa kuryente. (We always remind our customers to always check, not only their bills, but their electric consumption.) It might not be about the rate, but sa imong paggamit sa kuryente (with how you utilize the electricity),” he said.

Based on the summary of rates for the billing month August 2022, the charges of residential consumers is at P13.29/kWh.

Notably, there has been an increase of rates for residential consumers since May this year.

Rate for May is at P10.55/kWh, which then increased to P11.11/kWh in June and P11.64/kWh in July.

The increase in power rates could have been due to an increase in the generation charges and system loss charges.

Generation charge for May was at P6.57/kWh, while charges for June was at P6.57/kWh, P6.98/kWh in July, and P8.27/kWh (August).

System loss charge for May is at P0.59/kWh, while rate for June is at P0.66/kWh, P0.69/kWh in July, and P0.80/kWh in August. RGL

Trending

No stories found.

Just in

No stories found.

Branded Content

No stories found.
SunStar Publishing Inc.
www.sunstar.com.ph