Power

Higher Pass-Through Charges Raise Electricity Bills

The overall residential electricity rate of Davao Light for this month stands at P10.0612 per kilowatt-hour (kWh), reflecting a rise of P0.9080/kWh from last October’s rate of P9.1532/kWh. This rate applies to the November 11 to December 10 billing period.

The recent rate increase is mainly due to higher generation and transmission charges. Generation costs rose because of increased power supply prices from the Wholesale Electricity Spot Market (WESM), while transmission charges increased due to adjustments made by the National Grid Corporation of the Philippines (NGCP). These charges are remitted to the power supplier and the transmission operator, respectively.

Also contributing to the adjustment was the Energy Regulatory Commission (ERC)-ordered new Feed-In Tariff Allowance (FIT-All) of P0.2073/kWh starting November 2025. FIT-All, previously at P0.1189/kWh, is a uniform charge collected from all electricity consumers to support the country’s renewable energy source development. Davao Light remits the FIT-All to the National Transmission Corporation (TransCo).

Furthermore, adding to the increase is the reapplied Universal Charge-Environmental Charge (UC-EC) of P0.0025/kWh. This fee will fund power generation-related environmental rehabilitation and watershed management programs. The collection of the UC-EC, which was previously suspended, resumes based on the latest ERC directive. This will be remitted to the Power Sector Assets and Liabilities Management Corporation (PSALM).

The electricity bill is composed of four major components: generation, transmission, distribution, and government and other charges. Of these, generation, transmission, and government and other charges are considered pass-through charges, which distribution utilities collect on behalf of the respective entities. Meanwhile, the distribution charge goes directly to the utility company, and in the case of Davao Light, this component has remained unchanged since it was approved by the ERC in 2013.

Davao Light encourages customers to use electricity efficiently to avoid unexpectedly high bills, especially during the upcoming holiday season.

In its 79th year of empowering the evolution of its communities, Davao Light continues to provide solutions that pave the way for the development of its franchise area, covering the cities of Davao, Panabo, and the municipalities of Carmen, Dujali, and Sto. Tomas. Soon, the AboitizPower subsidiary will expand its services to the entire provinces of Davao del Norte and Davao de Oro.

More related articles