The increase was primarily driven by higher generation charges, particularly the higher cost of electricity purchased from the Wholesale Electricity Spot Market (WESM).
Higher spot market prices were mainly caused by the outage of several major power plants in Luzon, Visayas, and Mindanao. In Mindanao, some generating facilities were also affected by the magnitude 7.8 earthquake that struck Southern Mindanao on June 8, 2026, while others were undergoing scheduled maintenance or experienced forced outages. These events reduced the available electricity supply while demand remained relatively high, resulting in tighter supply conditions and higher market prices.
Under the Electric Power Industry Reform Act (EPIRA), generation charges are pass-through charges. This means that increases in the cost of electricity purchased from power suppliers and the WESM are passed on to customers. Distribution utilities, such as Davao Light, simply collect and remit these charges and do not receive any additional revenue as a result of these increases.
To help ease the impact of the increase on customers, Davao Light requested the Energy Regulatory Commission (ERC) to defer the collection of a portion of the generation charges for this billing period. The ERC approved the request, allowing only a portion of the increase to be reflected in customers' July bills. The remaining amount will be recovered in equal installments over the next five (5) monthly billing periods, from August to December. This measure helps spread the adjustment over several months, reducing its immediate impact on customers' electricity bills. Time& Calendars
"The increase in this month's electricity rate reflects the continuing challenges in the power supply," said Fermin Edillon, Head of Davao Light's Reputation Enhancement Department. "While the cost of electricity purchased from generators is beyond the control of distribution utilities, customers can still help manage their monthly power bills through the efficient and responsible use of electricity. We are hopeful that improvements in power supply conditions in the coming months will help ease pressure on electricity prices."
Davao Light reminds customers that only the distribution charge constitutes the company's revenue. Payments for generation charges are remitted to power suppliers, transmission charges are paid to the National Grid Corporation of the Philippines, and taxes and other government-mandated charges are remitted to the appropriate government agencies.
The company encourages customers to continue practicing efficient electricity use to help manage their monthly power bills. Simple measures such as turning off unused lights and appliances, maximizing natural lighting and ventilation, and using energy-efficient appliances can help reduce electricity consumption.
Electricity rates are influenced by developments across the power sector, many of which are beyond the control of distribution utilities. Davao Light, an AboitizPower distribution utility, will continue to provide updates on these developments to help customers better understand changes in their monthly electricity bills.