Davao Light and Power Company (Davao Light) said on Tuesday it has deferred the collection of a portion of the recent increase in generation charges to lessen the immediate impact of higher electricity rates on consumers, following concerns raised before the Davao City Council over surging power bills.
Speaking to the media after Tuesday’s City Council session, Davao Light President and Chief Operating Officer Engr. Enriczar T. Tia explained that the utility sought the Energy Regulatory Commission’s (ERC) approval to spread the collection of the additional generation costs over five months instead of charging consumers the full amount in one billing cycle.
“Since nisaka ang prices, ang gi-promise nato is to defer the collection of these costs. So, gi-spread nato over five months para gamay ra ang impact sa atong mga consumers,” Tia said.
He stressed that the increase was driven by higher generation charges resulting from soaring Wholesale Electricity Spot Market (WESM) prices after several major power plants in Luzon, Visayas, and Mindanao went offline due to scheduled maintenance, forced outages, and, according to him, the effects of the June 8 magnitude 7.8 earthquake.
Tia clarified that these are pass-through charges under the Electric Power Industry Reform Act (EPIRA), meaning Davao Light does not earn from the increase.
“These are generation charges; these are passed-on charges to the consumers. Dili mu-gain si Davao Light ani kay we gain only from the distribution charge, which is fixed. Wala na nisaka. Ang generation charge lang jud ang nisaka,” he said.
According to Tia, without the ERC-approved deferment, residential electricity rates could have exceeded P14.00 per kilowatt-hour.
“Actually, napaubos na na because of the deferment. Pwede namong kolektahon to siya buo, one time, pero dako kaayo ang increase. Maabot yata og more than P14.00 per kilowatt-hour,” he said.
The clarification came after Councilor Danilo Dayanghirang, chairperson of the Committee on Finance, Ways and Means, and Appropriations, delivered a privilege speech seeking answers from Davao Light regarding the continued increase in electricity rates, noting that residential rates have climbed from P9.71 per kilowatt-hour in December 2025 to P13.09 per kilowatt-hour for the July 11 to August 10, 2026 billing period.
Dayanghirang said the rising electricity costs are putting additional financial pressure on households, businesses, and even the city government’s operations, prompting the City Council to invite Davao Light officials to explain the recurring adjustments and the measures being taken to stabilize electricity prices.
Tia said electricity prices may ease once major power plants resume operations.
“We’re just hoping nga ang electricity spot market manaog pud ang presyo. Manaog ra ang presyo once the power plants nga are on shutdown mo-back online na siya. Indicative karon nga mabalik normal by September or October,” he said.
Tia also supported calls for more investments in power generation, saying additional power plants are the long-term solution to prevent supply shortages and reduce electricity costs as Davao City’s power demand continues to grow.
Meanwhile, Davao Light reminded consumers that while the ERC has extended the temporary suspension of electricity disconnections for another three months, customers are still encouraged to settle their bills on time to avoid accumulating unpaid balances that may become more difficult to pay later.
