Getting to know your bill

Curious about the different charges you see on your electricity bill? It is about time that you understand and get to know the different charges you see on your bill.

 

 

 

Generation Charge

This is the composite cost of electricity generated and sold to a distribution utility such as Davao Light.

 

Transmission Charge

It is the cost of transmitting power from the generation source to the receiving point of a distribution utility.

 

Systems Loss Charge

It is the cost of power loss recovery due to technical and non-technical system loss for delivering power to the end users.

 

Distribution Charge

It is the cost of developing, constructing, operating, and maintaining the distribution system that delivers power from high-voltage transmission grids to end-users. This is the only charge that goes to Davao Light

 

Customer Charge

A. Supply/Customer Charge - It is the cost of billing, collection, and various customer-related services.

B. Metering Charge - It is the cost associated with measuring the amount of energy consumed which includes meter, meter installations, accessories, and meter readings.

 

Lifeline Subsidy Discount

RA 9136 provides that inter-class subsidies shall be removed, except the lifeline rates applicable to marginalized or low-income residential electricity users. Davao Light's lifeline is set at 100 kWh. This discount applies only to the generation, transmission, distribution, supply, metering, and systems loss charges.


The Energy Regulatory Commission has set Davao Light's lifeline rate subsidy as follows:

Kwh Consumption

Discount*

​20 & below

​100%

​21-35

​50%

36-40

​45%

​41-45

​40%

​46-50

35%

51-55

​30%

56-60

​25%

​61-70

​20%

​71-80

​15%

81-90

10%

91-100

5%

*Discount on Generation, Transmission, Distribution, Systems Loss Charge, Supply Charge, Metering Charge

 

Lifeline Rate Subsidy

This will cover the aid (subsidy) given to marginalized (Lifeline Rate) customers. The Uniform Retail Rate structure specified in R.A. 9136 makes it subsidy-free. It means that inter-class subsidies currently enjoyed under the existing rate structure shall be removed.

 

Power Act Reduction

Is a rate reduction of P0.30 per kWh mandated under the EPIRA  for residential customers applied only to NPC’s contribution to the total power supply of Davao Light

 

National Franchise Tax

Refers to 2% of gross revenue remitted to the national government as national franchise tax.

 

Local Franchise Tax

A range of 0.65% to 0.87% of gross revenue goes to local government as local franchise tax.

 

Universal Charge

It is a non-bypassable charge determined, fixed, and approved by the Energy Regulatory Commission to be imposed on all electricity end-users. This is remitted to the Power Sector Assets and Liabilities Management (PSALM), owned and controlled by the government. This would include:

  1. Stranded costs/contracts of NPC. Payment for the NPC debts after sale of its generating assets in excess of the amount assumed by the National Government.

  2. Missionary Electrification. R.A. 9136 mandates NPC to carry on with its missionary function of providing electricity to non-viable, far-flung areas in the countryside even after its privatization.

  3. Environmental Charge. The amount of P0.0025 per kilowatt hour shall be collected from all end users. This environmental fund will be managed by NPC, to be used solely for watershed rehabilitation and management.

  4. Tax Equalization. It is the equalization of the taxes and royalties applied to indigenous or renewable source of energy vis-a-vis imported energy fuels.

  5. Stranded Costs/Contracts of Utilities. This refers to the distribution utilities' losses in value of generating assets and contracts approved by the ERB before December 31, 2000 as a consequence of industry deregulation.

 

Surcharge

This amount represents two percent (2%) of previous unpaid bills.

 

 

 

 

 

HOW TO ESTIMATE YOUR BILL

 

Here is the basic formula in computing your electricity consumption in pesos.

To know the updated monthly rate, please follow this link.