Pass through charge caused increase in consumers’ electric bill, says power firm

May. 23, 2010

DAVAO CITY—Despite the reduction in the use of electricity due to the rotational brownouts, the average rate of electricity has increased.

Davao Light & Power Co. explained that the reason for the higher charges in April and May is mainly due to the increase in transmission charge of the National Grid Corporation of the Philippines (NGCP).

The additional charge is from ancillary charges from power coming from sources other than hydropower. The transmission charge is a pass-through charge for Davao Light and it merely collects for the transmission company.

From .7146 centavos per kilowatt-hour (kWh), the transmission charge increased by .4238 centavos/kWh in April and further to .5453 centavos /kWh in May for residential customers.

Aside from the transmission charge, other pass through charges on generation and system loss resulted in anincrease of .0536 centavos/kWh and .0613 centavos/kWh, respectively, for the month of May.

For a residential customer whose consumption is 175 kWh, his bill in May will be higher by about 144 pesos.(DLPC/Ross C. Luga, Corporate Communications Office)

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