Consumers served by Davao Light and Power Co., Inc. (Davao Light) are expected to pay higher electricity bills this month after the utility’s overall residential rate increased by P1.95 per kilowatt-hour (kWh), driven by higher generation costs amid a nationwide power supply deficit.
In a statement, Davao Light said that for the billing period of June 11 to July 10, 2026, the overall residential rate rose to P12.30/kWh from P10.35/kWh in the previous billing cycle.
Davao Light attributed the increase to higher prices in the Wholesale Electricity Spot Market (WESM) following tight power supply conditions caused by the simultaneous outages and derated capacities of several power plants that began last month.
“Due to the power supply deficits we are experiencing nationwide, we expect high electricity bills beginning this month,” said Fermin Edillon, head of Davao Light’s Reputation Enhancement Department, during the Davao City Peace and Security Press Corps media briefing.
He added that the higher rates may continue in the coming billing periods unless power generation conditions improve.
Edillon explained that the increase is largely due to fluctuations in the generation charge, which changes monthly depending on market conditions and is paid directly to power suppliers.
“Nakaapekto ani is ang generation charge nato, o generation rate nato. Month-to-month gasaka-naog. Duna ta’y daghang factors to consider, no? Again kani ginatawag nato ug the law of supply and demand. Kung saka ang demand, mosaka pud ang presyo; kung ubos ang demand, mo-ubos pud ang presyo,” he explained.
He added that fuel prices in the global market also significantly influence generation costs.
“Usa pud sa mga factors na consider nato is kanang the price of fuel sa world market. Mao na siya ang gasaka-naog nining mga generation rate,” Edillon said.
The company emphasized that while generation and transmission charges fluctuate, its distribution charge has remained unchanged.
“And again, in our case, wala gibalhin saka since 2018. Ang fixed gyud niana ang amoang distribution rate. Ang nagasaka lang gyud diha is ang generation. And there are times mosaka pud ang transmission charges which is under NGCP,” he said.
Davao Light explained that the generation charge is remitted to power suppliers, while transmission charges are paid to the National Grid Corporation of the Philippines (NGCP), and government-mandated fees are remitted to the appropriate agencies. The distribution charge, which goes directly to Davao Light, has remained unchanged since 2013.
With electricity rates continuing to vary depending on supply conditions and market prices, Edillon urged consumers to manage their power consumption wisely.
“Since rates change monthly, we encourage our customers to continue using electricity mindfully to better manage their electricity costs,” he said.
A subsidiary of Aboitiz Power Corporation, Davao Light said it remains committed to providing transparent information on electricity sourcing and pricing while delivering safe, reliable, and reasonably priced electric service to the communities it serves.
