Davao Light to refund P96.2M to customers

Subscribe Now November 19, 2014 at 08:21am

Davao Light and Power Co. (DLPC), an electricity distribution unit of Aboitiz Power Corp., will refund P96.2 million to its 330,000 customers for excess collections made between February 2004 and December 2012.

The amount covers the variance in charges for over-recovery and under-recovery as ruled on by the Energy Regulatory Commission (ERC).

“Over or under recoveries result due to the timing difference between the amount collected from customers versus the actual costs billed by the distribution utility’s suppliers,” DLPC said in a statement sent to BusinessWorld, noting that there is nothing irregular about the billings made during the more than eight-year period.

The ERC, following a petition filed by DLPC, declared in an Aug. 18, 2014 decision that the company over-recovered about P437.835 million and under-recovered P341.625 million during the period in question.

The ERC ruling specified that the company over-recovered on system loss costs and lifeline subsidy while it under-recovered on generation cost, transmission and inter-class subsidy.

For an average household consuming 200 kilowatt-hours (kWh) of power per month, the refund will amount to P0.0285 per kWh or P5.70 deducted from the monthly bill in the first three years.

Starting on the fourth year, the refund will be higher at P0.0328 a kilowatt-hour, or P6.56 a month.

DLPC, whose franchise areas include Davao City and parts of Davao del Norte province, has shielded the city from power outages that hit most areas in Mindanao in 2010 by buying supply from sister company Hedcor, Inc., a hydroelectric power producer that operates four plants in Davao del Sur province.

Hedcor decided to sell its supply to DLPC after the Davao del Sur Electric Cooperative, the distributor in the province, did not signify intent to purchase the power produced at the Sibulan run-of-river hydroelectric plant in Sta. Cruz, a town adjacent to Davao City.

As part of its preparations for the expected continued increase in Davao City’s power requirement, DLPC also signed up to buy 100 megawatts (MW) of the 300-MW power that another sister company, Therma South, Inc., will be producing beginning next year.

Arturo M. Milan, DLPC executive vice-president, explained that the supply from Therma South’s output, which will be directed to the Mindanao grid, will cover the 2015 growth projection on investments in Davao City that will require about 70 MW.

“We need to be prepared,” said Mr. Milan, whose company already buys about a fourth of the 1,300-MW power from the Mindanao grid.

Source: bworldonline.com

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