THE DAVAO Light and Power Company assured consumers that its service area expansion will not lead to an automatic increase in electricity rates.
This statement comes in response to concerns raised during a House committee hearing on legislative franchises held on Sept. 27, 2024.
During the hearing, the Energy Regulatory Commission (ERC), the Philippines’ power rate-setting authority, assessed that Davao Light’s expansion won’t necessarily translate to higher prices.
While an ERC simulation showed a potential increase of P0.30/kWh in the current Northern Davao Electric Cooperative (NORDECO) franchise area, this scenario assumes that Davao Light absorbs all existing NORDECO power supply contracts.
“New power supply contracts through a competitive selection process can make this a non-issue,” explained Fermin Edillon, head of reputation at Davao Light during the Davao Peace and Security press briefing held at The Royal Mandaya Hotel on Wednesday, Oct. 16.
Davao Light, the third-largest private utility company in the Philippines, currently boasts lower power rates compared to neighboring electric cooperatives.
According to Edillon, this reflects the company’s commitment to securing the most affordable power contracts for its customers.
Edillon also emphasized that fluctuations in power generation rates, often driven by geopolitical and economic factors, are beyond the control of any distribution utility.
He added, “The movement of prices should be viewed within regional and global contexts.”
Photo courtesy of Bing Gonzales
