DAVAO CITY (MindaNews / 14 June) – The Aboitiz-led Davao Light and Power Company (DLPC) may implement another increase in electricity rates starting this month, citing the reduced generating capacity of hydropower plants in the previous weeks due to the effect of El Niño phenomenon.
Fermin Edillon, head of the Reputation Enhancement Department of DLPC, said during the Kapihan sa Philippine Information Agency on Friday that the company’s franchise area might continue to feel the adverse impact of the drought on the power industry’s generation side if the El Niño had ended.
He said he has yet to know how much the increase will be but added that the new rate will be announced next week.
He said the water level of the rivers decreased due to the El Niño, affecting the capacity of the hydropower plants.
He said the DLPC’s renewable sources are hydropower and geothermal, which are cheaper compared to non-renewable sources.
He said the DLPC implemented a P0.14 per kilowatt hour increase in April and P1.63 in May, which brought the power rates to P9.13 per kWh and P10.76 per kWh, respectively.
He added that the increase is also driven by the spike in the higher demand for power.
He said even with the increase, the power rate of DLPC remains to be one of the lowest in Mindanao
He said the rising heat index forced several of its consumers to use air-conditioning units and electric fans.
“Considering that almost all of us are using electricity, demand also increases,” he said.
Edillion said DLPC recorded a demand of 542 megawatts (MW) in April, the highest peak demand “in the history of Davao Light.”
He said the power supply in Mindanao remains stable but consumers may feel more costly electricity bills as the demand surges.
The whole of Mindanao has a total available generating capacity of 3,302 megawatts (MW) and a system peak demand of 2,421 MW as of 12:00 noon on Friday, according to National Grid Corporation of the Philippines.
He said the power utility prioritizes the cheaper renewable sources but added that it is constrained to tap the more expensive non-renewable sources as the capacities of hydropower plants are reduced.
He said it is likely that power rates will start to stabilize starting July as the country experiences more rain.
He said DLPC has around 480,000 customers within its franchise area, covering Davao City and Panabo City and the towns of Carmen, Braulio E. Dujali, and Santo Tomas in Davao del Norte. (Antonio L. Colina IV/MindaNews)
