DAVAO CITY (MindaNews / 31 October) – Electricity rates in the city may increase in November due to the recent earthquake in Cebu that has disrupted power supply, the Davao Light and Power Company (DLPC) said.
The National Grid Corporation of the Philippines said 27 power plants had tripped following the magnitude 6.9 earthquake off Bogo, Cebu on September 30, leading to a 1,444.1-megawatt (MW) capacity loss from the grid.
Although the NGCP has restored the Visayas grid, Fermin Edillon, DLPC spokesperson said during the peace and security press briefing Wednesday that shutdowns of power plants in Cebu still affects the country’s power supply.
He said this may result in an increase in power rates to cope with the demand of electricity in the country.
Edillon, however, said a possible increase in the November billing remains unclear as factors may still affect power rates, including consumption vis-à-vis supply and demand.
He said that if households can reduce their consumption it would mean lower rates based on the “law of supply and demand.”
A bigger factor that determines electricity rates is the cost of power generation, which is sometimes affected by fuel prices in the world market, something that is beyond the control of domestic power plants, he said.
For the month of October, DLPC’s residential rate dropped by P1.48 per kWh or P9.25 kWh in October from September’s P10. 62 per kWh. This means households using 200 kWh can expect an almost P300 decrease in their monthly bill from October 11 to November 10.
The drop is attributed to the lower power supply cost from the Wholesale Electricity Spot Market where a portion of DLPC’s power supply is sourced.
Edillon, meanwhile, confirmed plans for a prepaid metering system, a new option for power purchase which will help consumers properly manage their electric consumption as they will pay ahead before using electricity.
He said the system is already implemented in the metropolis and in Cebu, and talks are on the way for its implementation in Davao.
”This is good for places that are far and difficult to monitor like rural communities. But it’s still being studied if it’s practical to implement in Davao,” he said. (Daniel Jamito/MindaNews)
