Electricity Bill

Generation Charge

This is the composite cost of electricity generated and sold to a distribution utility such as Davao Light.

Transmission Charge

It is the cost of transmitting power from the generation source to the receiving point of a distribution utility.

Systems Loss Charge

It is the cost of power loss recovery due to technical and non-technical system loss for delivering power to the end users.

Distribution Charge

It is the cost of developing, constructing, operating, and maintaining the distribution system that delivers power from high-voltage transmission grids to end-users. This is the only charge that goes to Davao Light.

Customer Charge

A. Supply/Customer Charge

It is the cost of billing, collection and various customer-related services.

B. Metering Charge

It is the cost associated with measuring the amount fo energy consumed which include meter, meter-installations, accessories and meter reading.

Lifeline Subsidy Discount

RA 9136 provides that inter-class subsidies shall be removed, except the lifeline rates applicable to residential electricity users who fall below the poverty threshold as determined by the PSA or beneficiaries of the “4Ps Act” (Pantawid Pamilyang Pilipino Program) under Republic Act No. 11310. Davao Light's lifeline is set at 100 kWh. This discount applies only to the generation, transmission, distribution, supply, metering, and systems loss charges.

Lifeline Rate Subsidy

This will cover the aid (subsidy) given to marginalized (Lifeline Rate) customers. The Uniform Retail Rate structure specified in R.A. 9136 makes it subsidy-free. It means that inter-class subsidies currently enjoyed under the existing rate structure shall be removed.

Power Act Reduction

Is a rate reduction of P0.30 per kWh mandated under the EPIRA  for residential customers applied only to NPC’s contribution to the total power supply of Davao Light.

VAT Generation

This is a tax on the cost of electricity generated and sold to a distribution utility.

VAT Transmission

It is a tax on the cost of transmitting power from the generation source to the receiving point of a distribution utility.

VAT System Loss

It is a tax on the cost of power loss recovery due to technical and non-technical system loss for delivering power to the end users.

VAT Distribution

This is a 12% tax on the cost of the Distribution, Supply and Metering charges.

VAT Others

This is a 12% tax on the cost of the Other charges.

Local Franchise Tax

This is a percentage tax ranging from 0.65% to 0.87% of gross revenue to recover the local franchise tax imposed by the local government in your city or municipality.

Universal Charge

It is a non-bypassable charge determined, fixed and approved by the Energy Regulatory Commission to be imposed on all electricity end-users. This is remitted to the Power Sector Assets and Liabilities Management (PSALM), owned and controlled by the government. This would include:

• Stranded costs/contracts of NPC. Payment for the NPC debts after sale of its generating assets in excess of the amount assumed by the National Government.

• Missionary Electrification. R.A. 9136 mandates NPC to carry on with its missionary function of providing electricity to non-viable, far-flung areas in the countryside even after its privatization.

• Environmental Charge. The amount of P0.0025 per kilowatt hour shall be collected from all end users. This environmental fund will be managed by NPC, to be used solely for watershed rehabilitation and management.

• Tax Equalization. It is the equalization of the taxes and royalties applied to indigenous or renewable source of energy vis-a-vis imported energy fuels.

• Stranded Costs/Contracts of Utilities. This refers to the distribution utilities' losses in value of generating assets and contracts approved by the ERB before December 31, 2000 as a consequence of industry deregulation.

Surcharge

This amount represents two percent (2%) of previous unpaid bills.

The electric consumption meter installed in your home is a precision device accurately measuring your use of electrical energy. Delicate recording instruments are used to test your meter to make sure that readings are accurate. It is factory tested. Davao Light tested and retested it and it is sealed by the Energy Regulatory Board.