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 fo energy consumed which include meter, meter-installations, accessories and meter reading. Lifeline Subsidy Discount RA 9136 provides that inter-class subsidies shall be removed, except the lifeline rates applicable to residential electricity users who fall below the poverty threshold as determined by the PSA or beneficiaries of the “4Ps Act” (Pantawid Pamilyang Pilipino Program) under Republic Act No. 11310. 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:

*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.

VAT Generation

This is a tax on the cost of electricity generated and sold to a distribution utility.

VAT Transmission

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

VAT System Loss

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

VAT Distribution

This is a 12% tax on the cost of the Distribution, Supply and Metering charges.

VAT Others

This is a 12% tax on the cost of the Other charges.

Local Franchise Tax

This is a percentage tax ranging from 0.65% to 0.87% of gross revenue to recover the local franchise tax imposed by the local government in your city or municipality.

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.

The electric consumption meter installed in your home is a precision device accurately measuring your use of electrical energy. Delicate recording instruments are used to test your meter to make sure that readings are accurate. It is factory tested. Davao Light tested and retested it and it is sealed by the Energy Regulatory Board.

HOW TO READ YOUR METER

Reading your electric meter is as easy as counting 1-2-3. Let's start with getting to know your meter(s). There are two types of electric meters being used in Davao Light. One is the Digital Type which indicates kilowatt-hour (KWH) readings by digital numbers as illustrated. The other is the Dial Type which is the most commonly used meter. You will notice that there are five dials and inside each dial is a pointer which indicates the number to be read. The pointers will alternately turn clockwise and counterclockwise. The pointer of Dial A has to complete one revolution from "0" back to "0" before the pointer of Dial A is equivalent to one point of Dial B. The same procedure follows for Dial B and Dial C. Same goes for Dials C and D, Dials D and E.

THREE EASY STEPS TO READ YOUR METER

1. Always read the dials from the right to the left, starting from Dial A to Dial E.

2. Read the number by the pointer of the dial. When the pointer is between two (2) numbers, the lower number is recorded.

3. To compute your electric consumption, simply subtract the previous reading from the present reading.

ADDITIONAL TIPS

Read your meter on the same hour each day to effectively check or monitor your electric consumption. To determine your average electric consumption per day or for a month, you must follow a schedule, e.g. reading your meter at 7:00 A.M. everyday or every other day. Knowing your daily consumption will help you control/ manage the use of your electric fixtures and appliances to yield that amount of kWh-consumption you are willing to pay for daily or monthly.