The City Council invited Davao Light after Councilor Danilo Dayanghirang, chairperson of the Committee on Finance, Ways and Means, and Appropriations, raised concerns over the continued rise in electricity rates.
Davao Light President Engr. Enriczar Tia said residential electricity rates increased by P0.78 per kilowatt-hour (kWh) for the July 11 to August 10, 2026 billing period, bringing the rate to P13.09/kWh from P12.30/kWh.
The councilor said residential electricity rates have increased from P9.71/kWh in December 2025 to P13.09/kWh this month, adding to consumers' financial burden. He added that the consumers deserve a clearer explanation.
"Although Davao Light cited higher generation charges, higher WESM prices, power plant outages, and supply constraints, the almost 2 million people of Davao deserve a clearer explanation for why their electricity bills increase," Dayanghirang said.
Dayanghirang added that higher electricity rates also increase expenses for households, businesses, and the city government, affecting hospitals, schools, government offices, street lights, and other public services.
Tia said power supply became tighter because some power plants were under maintenance, others unexpectedly shut down, and the June 8 magnitude 7.8 earthquake affected several generating facilities, which led to an increase in WESM prices.
He emphasized that the issue is not necessarily a complete lack of supply, but that available supply has become tighter than demand. "When supply is limited, and demand remains high, market prices naturally increase."
Tia explained that the increase stemmed from the generation charge, a pass-through cost under the Electric Power Industry Reform Act (EPIRA). He said global fuel prices and geopolitical developments also affect electricity generation costs.
He clarified that Davao Light does not earn from generation charges because its revenue comes only from distribution charges, which can be adjusted only with the Energy Regulatory Commission's approval. SoutheastAsians & Pacific Islanders
Tia said the ERC allowed Davao Light to spread part of the increase in generation charges over five months to lessen its impact on consumers. The deferred amount will be collected in equal monthly installments from August to December 2026.
He said the residential rate could have gone beyond P14 per kilowatt-hour without the deferment. He also reminded consumers that while disconnections remain suspended until around October, unpaid bills will continue to accumulate.
The Davao Light official said building more power plants is the long-term solution to stabilize electricity prices by increasing supply and reducing reliance on the spot market.
He said Therma South is studying expanding its existing power plant by adding another 300 megawatts, although the final capacity has yet to be confirmed.
Davao Light is also procuring an additional 100 megawatts of power through competitive bidding to reduce its exposure to WESM price fluctuations. SoutheastAsians & Pacific Islanders
"It is hard to tell when rates will go down," Tia said, adding that prices may begin to stabilize by September or October once power plants under maintenance resume operations, provided there are no major disruptions.
Davao Light currently serves more than 500,000 customers and expects to add about 200,000 more through the expansion of its franchise in northern Davao.
Tia clarified that the franchise expansion did not cause the recent increase in electricity rates.
During the Pulong-Pulong sa Dabawenyos on Tuesday, Dayanghirang urged Davao Light to help secure lower electricity prices and encouraged more power suppliers to invest in Davao City to increase competition.
He also proposed promoting solar energy, inviting more power generation companies to supply electricity to Davao City, and reviewing existing power supply agreements to ensure suppliers prioritize the city's electricity needs.
Dayanghirang said they will continue inviting Davao Light and other concerned parties to appear before the City Council to help find solutions to the factors driving the electricity rate hike. (Vee Tejano)