DLPC adopts mechanisms to ensure better service

The power distributor of the city, Davao Light and Power Company (DLPC), has adopted mechanisms that will help both consumers as well as ensuring the availability of supply even in the future.

In a presentation during the ‘Kuryentalks’ forum, Rodger S. Velasco, company executive vice president and chief operations officer, said the company is enhancing its moves to lower the cost of power and ensure enough supply.

“Supply optimization, strategic contracting, and competitive selection process (CSP) are our way of addressing energy equity or cost and security of the city,” said Velasco whose utility also serves the towns of Carmen, Sto Tomas and Dujali and Panabo City in Davao del Norte.

Based on its data, although the National Power Corp. (NPC), the operator of the government-run hydropower complexes in Agus and Pulangi, can supply the 424 megawatts (MW) demand of its franchise areas, Velasco said his company needs to source more to cushion the impact of lack of power in cases where the hydroelectric plants falter.

“Considering that NPC is already unreliable because of its
aging power plants and it heavily relies on hydropower which is subjected to weather patterns, with only two megawatts allowance drought occurrences our supply will dwindle down,” said Velasco, adding that the company has secured contracts with other companies.

DLPC has also existing contracts with sister companies Therma South Inc. for 105 megawatt of power as the latter is operating a coal-fired power plant, and Hedcor Inc., which operates smaller hydroelectric plants in Davao del Sur and in Tamugan. The companies are subsidiaries of the Aboitiz Power Corp.

Velasco pointed out that at present, 63% of its power is from fossil-fueled plant and the remainder is from renewable power plants. “We have to secure diverse source in order to achieve security, reliability and be sustainable,” he said

He said the company has been able to strategize that “what we do now, because there is an oversupply, we under-contract a little bit. This will lessen our cost of power because we don’t pay unnecessary fixed charges.”

At the height of the power shortage until six years ago, the company had to over-contract to ensure that its distribution area would have enough supply, he said even as the company has also a diesel-fed standby plant.

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