AN INCREASE in generation rates will reflect for June to September billing to pay WESM on a staggered basis, Davao Light and Power Co. (DLPC) explained on Tuesday, June 25.
Roger Velasco, DLPC chief operations officer, shed light on the issue following the invitation of Councilor Louie John Bonguyan last June 18 regular session.
Bonguyan requested DLPC to appear in Tuesday’s session to explain the sudden rise in power rates for April and May.
An increase of P0.14 per kilowatt hour was implemented in April and rose to P1.63 in May, which brought the power rates to P9.13 per kWH in April and P10.76 per kWh in May.
“It increased due to the El Nino phenomenon which leads to the decrease in the supply of a cheaper power which is Hydro, which is the highest supplier of Davao Light,” Velasco explained during the session.
With this, billing in May rose as the hydro source was down by 80%, and DLPC sourced the power from the Wholesale Electricity Spot Market (WESM), a more expensive source.
Velasco further explained that the rate drastically reduced from P10.76 per kWh in May to P7.94 per kWh in June as per the order from the Energy Regulatory Commission (ERC) Case No. 2024-017 MC.
“All distribution utilities to collect generation charges from the May billing of the Wholesale Electricity Spot Market (WESM) on a staggered basis, evenly divided from June 2024 to September 2024,” the order reads.
DLPC earlier announced on June 19 that, as per the ERC ruling, customers would feel the reduction during the billing period from June 11 to July 11.
However, Velasco reiterated due to staggered payments, higher billing will be experienced in July- September billing.
“Just to manage the expectations of the council, because of staggered payments, there is an added P1 on top of generation charge for the succeeding three months,” he said.
Bonguyan manifested by asking the ERC through DLPC to look into the possibility of making a one-time lump sum payment for WESM in June billing.
He added that the DLPC should consider not paying on a staggered basis so that in July-September billing will be back to normal.
“Lisod karon, baba ta for the month of June, when it comes to July-September banatan napud ta naa tay P1.20 cents on top of generation charge, which will fall into P10-P11 per kWh, so dako gihapon,” Bonguyan said.
Velasco added they have informed the ERC that rates were affected due to the recent ruling, in hopes that the ERC to look into an alternative to prevent the increased rate for July-Sep billing.
DLPC is certain that the rate will increase by P1 per kWh, but cannot determine yet the generation per month, as power suppliers have not provided a bill.
However, he said they await the ERC’s consideration for July billing, which is yet to respond to their concern.
