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 and below. This discount applies to the sum of generation, transmission, system loss, distribution, supply, and metering charges, and other charges as may be approved by the ERC. The Energy Regulatory Commission has set Davao Light's lifeline rate subsidy as follows: Lifeline Rate Subsidy This is the cost of providing discounts to 4Ps beneficiaries and certified marginalized consumers with monthly consumption of 100 kWh and below. The amount is collected from consumers at a fixed rate of 0.01 Php/kWh and is remitted to Power Sector Assets and Liabilities Management Corporation. Senior Citizen Subsidy This charge is used to fund bill discounts for senior citizens consuming 100 kWh and below, as well as for institutions for the elderly accredited by the Department of Social Welfare and Development. Senior Citizen Discount This is a benefit granted to qualified senior citizens who consume 100 kWh and below, as well as to accredited institutions for the elderly recognized by the Department of Social Welfare and Development (DSWD). 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. Real Property Tax This is an annual tax imposed by local government units (LGUs) on real properties, including land, buildings, machinery, and other improvements. 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: 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. 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. Missionary Electrification RE Developer. R.A. 9513 provides a cash incentive for Renewable Energy (RE) Developers for missionary electrification. 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. 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. 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. Feed-in Tariff Allowance (FIT-All) This is a universal charge that supports the development of renewable energy projects under the Feed-in Tariff Program. It is determined annually by the Energy Regulatory Commission (ERC) and collected from electricity consumers. The amount collected is remitted to the National Transmission Corporation (TransCo) to fund payments for qualified renewable energy developers. Green Energy Auction allowance (GEA-All) This supports the development of renewable energy projects under the Green Energy Auction Program (GEAP). The GEAP is a government initiative where renewable energy developers compete through auctions to secure supply contracts at the lowest cost. The funds collected are remitted to the National Transmission Corporation (TransCo) to support program implementation and settlement of obligations. 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 Always read the dials from the right to the left, starting from Dial A to Dial E. Read the number by the pointer of the dial. When the pointer is between two (2) numbers, the lower number is recorded. 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.