DCM urges review of pass-on charges as power rates rise

Linemen from Davao Light and Power Company install a distribution pole during the launch of the 22MVA digital substation and warehouse/stockyard facilities in Barangay Magugpo, Tagum City, Davao del Norte earlier this year. The Davao Consumer Movement (DCM) is calling on the Energy Regulatory Commission (ERC) to reassess pass-on charges amid rising electricity costs in the region. LEAN DAVAL JR

The Davao Consumer Movement (DCM) is urging the Energy Regulatory Commission (ERC) to reassess pass-on charges amid a series of cost increases that continue to push electricity bills higher in Davao Region.

Within a month, DCM flagged three developments that may further burden consumers: the October surge in Wholesale Electricity Spot Market (WESM) rates, the reinstatement of the environmental charge, and higher transmission rates beginning November.

Independent Electricity Market Operator of the Philippines (IEMOP) reported a 49.4% spike in WESM prices in October, with Mindanao rates rising 40% to P5.87/kWh due to plant outages and disruptions triggered by the September 30 Visayas earthquake. Supply fell by 4% while demand grew by 1.8%.

In a statement, DCM stated that the ERC also resumed collecting the P0.0025/kWh Universal Charge–Environmental Charge, while National Grid Corporation of the Philippines (NGCP) implemented a 7.91% increase in transmission rates, driven mainly by higher ancillary service costs.

The group noted that the ERC is likewise studying a proposed P0.01/kWh lifeline subsidy charge to expand assistance for marginalized households.

DCM warned that the combined impact of these adjustments is already felt by consumers.

The group mentioned Davao Light and Power Company’s residential rate rose from P8.98/kWh in January to P10.06/kWh in November.

The group urged the ERC and the DOE to review electricity bill components, including proposals to remove the 12% VAT on power, and called on distributors to improve supply management and source more affordable energy.

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