Davao Light and Power Co., Inc. (Davao Light) raised electricity rates for the March–April 2026 billing cycle, citing higher generation costs driven by market prices.
The utility set the overall residential rate at P10.63 per kilowatt-hour (kWh), up P0.33/kWh from February’s P10.30/kWh. The new rate covers bills issued from March 12 to April 11.
Davao Light attributed the increase mainly to higher prices from the Wholesale Electricity Spot Market (WESM), a platform where electricity is traded as a commodity and one of the company’s key power sources.
“The rate adjustment is attributed to the higher prices from the Wholesale Electricity Spot Market (WESM), a venue for trading electricity as a commodity, which is one of Davao Light’s supply sources,” the company said in an advisory.
For households consuming around 200 kWh per month, the adjustment translates to an estimated increase of about P65 to P66 in their electricity bill.
While the per-kilowatt-hour increase appears modest, Davao Light said the cumulative impact may be felt more by households with higher consumption, reflecting the continued influence of market-driven generation costs.
The company also implemented a Uniform Lifeline Subsidy rate of P0.01/kWh this March, in line with Energy Regulatory Commission (ERC) Resolution No. 2, Series of 2026. The fixed monthly charge applies to customers not enrolled in the Lifeline Subsidy program and to enrolled users whose consumption exceeds the 100 kWh threshold.
Meanwhile, under-recovery rates remain reflected as additional charges starting the February–March billing period, pursuant to ERC Resolution No. 14, Series of 2022.
Davao Light said under- and over-recoveries are standard in power distribution, caused by timing differences between when suppliers bill utilities and when utilities bill customers. The mechanism allows distribution utilities to recover costs under-collected in previous periods.
Fermin Edillon, head of Davao Light’s Reputation Enhancement Department, warned that global developments may continue to affect electricity prices.
“With ongoing tensions in the Middle East pushing global fuel prices higher, electricity costs may be affected. Any impact will likely be reflected in the next billing cycles, when power suppliers charge for the current supply of electricity,” he said.
Davao Light said it continues to monitor developments in the power market while ensuring reliable service.
The company urged customers to manage their electricity use to help offset higher costs. It advised simple measures such as turning off unused appliances, maximizing natural lighting, and using energy-efficient devices to reduce consumption.
Davao Light also assured the public of transparency in rate adjustments and timely updates, as electricity prices remain sensitive to market conditions. DEF WITH PR