Power rate in Davao City has gone up by P1.6254 per kilowatt hour (kWh) in May 2024.

According to the Davao Light and Power Company (DLPC), the overall residential rate is now P10.7608 from P9.1354 per kWh the previous month.

DLPC said the increase is attributed to higher generation rate primarily due to the substantial reduction of cheaper supply from hydro plants due to the effects of El Niño and the high price of electricity from the Wholesale Electricity Spot Market (WESM) which are both attributed to Generation Charge.

“The higher generation charges pulled the overall residential rate up to P10.7608 per kWh from the previous month's P9.1354 per kWh where a typical household with an average monthly consumption of 200 kWh will experience a P325.08 increase compared to their April billing. This rate applies to the billing period of May 11 to June 10, 2024,” DLPC said.

“We emphasize that the increase is driven by the generation charge which is a pass-through charge that Davao Light merely collects and pays to generation companies,” DLPC Reputation Enhancement Department Head, Fermin Edillon, said.

DLPC explained that power rates are divided into four major components: generation and transmission, distribution, subsidies and other charges, and government charges and taxes.

DLPC added that its distribution rate has remained unchanged since 2013.

The power utility has advised its customers earlier this month to conserve electricity as rate increases are expected in the next few months ‘given the power supply situation and higher demand due to the warm and dry season.’

“With this, Davao Light reminds customers to manage their energy consumption properly to avoid high bills. Households can save electricity by lessening the hours or days used for appliances with high wattage ratings and using energy-efficient appliances and lighting fixtures. Moreover, on hot and warm days it is best to keep the house cool by opening windows and curtains to allow air to flow freely,” DLPC said.