DESPITE a modest decline in transmission charges announced by the National Grid Corporation of the Philippines (NGCP), electricity consumers in Davao City are facing higher power bills this January as soaring generation costs, market volatility, and the implementation of a new government-mandated charge push overall rates upward.
Data from NGCP showed that the average transmission rate for the December 2025 billing period, reflected in January 2026 bills, slipped by 0.68 percent to P1.3455 per kilowatt-hour (kWh) from P1.3547/kWh.
While the reduction offered slight relief, its impact was overshadowed by steeper increases in other components of the power bill.
Of the total transmission rate, P0.5971/kWh was attributed to Ancillary Services, which cover the cost of reserve power procured from the Ancillary Services Reserve Market and from suppliers with bilateral contracts. Another P0.6058/kWh came from the transmission wheeling charge, which represents the cost of delivering electricity across the national grid.
“For the January 2026 electric bill of end consumers, NGCP charges only 60 centavos per kWh for the delivery of its services,” NGCP said, reiterating that all of its revenues remain subject to regulation and rate caps imposed by the Energy Regulatory Commission (ERC).
NGCP stressed that transmission charges are merely pass-through costs collected by distribution utilities and electric cooperatives, and that the company does not benefit from fluctuations in market-driven components such as Ancillary Services.
While transmission costs edged down, generation charges surged significantly, resulting in higher overall electricity rates for customers of Davao Light and Power Co., Inc. (Davao Light) for the billing period covering January 11 to February 10, 2026.
Davao Light reported that the overall residential rate climbed to P11.7187/kWh, up by P2.0052/kWh from P9.7135/kWh in December 2025.
This increase represents one of the steepest month-on-month adjustments in recent years, reflecting persistent instability in power supply conditions.
The utility explained that the primary driver of the increase was the higher cost of electricity sourced from the Wholesale Electricity Spot Market (WESM).
Several power plant outages in the previous month reduced available supply, forcing distribution utilities to procure more power from the spot market at elevated prices.
Beyond market conditions, regulatory adjustments also contributed to the increase. The implementation of the Green Energy Auction Allowance (GEA-All) under ERC Case No. 2025-127 RC dated December 26, 2025 introduced a new pass-through charge on consumers’ bills. The GEA-All is intended to support the government’s renewable energy procurement program, which aims to accelerate the country’s transition toward cleaner energy sources.
Although the lower Feed-In Tariff Allowance (FIT-All) rate and the Renewable Energy Certificate (REC) refund of -0.0070/kWh provided partial relief, these reductions were insufficient to counterbalance the combined impact of higher WESM prices and the new GEA-All charge.
Davao Light emphasized that it does not retain any portion of generation charges, noting that these collections are remitted in full to power suppliers, while government-mandated fees are forwarded directly to the appropriate state agencies.
The utility reiterated that electricity bills are influenced by both consumption levels and prevailing rates, encouraging customers to actively manage their energy use, particularly during periods of volatile pricing.
Electricity usage reduction methods
Fermin Edillon, head of Davao Light’s Reputation Enhancement Department, said discipline in daily habits can significantly reduce consumption.
“Let us focus on simple daily habits and maximizing natural resources such as sunlight and air. These may seem insignificant, but once we receive our electric bill, we will see its big impact,” he advised.
Davao Light recommended practical measures such as unplugging idle appliances to avoid phantom load, maximizing daylight and natural ventilation, selecting properly sized appliances, ironing clothes in one continuous session, and limiting repeated use of heating devices like electric kettles, which are among the top contributors to high electricity consumption.
As of press time, SunStar Davao had sought clarification from Davao Light as the current residential rate is the highest recorded so far in the city amid consecutive month-on-month increases. However, the company had yet to respond.
Concerns about Nordeco takeover revived
The latest adjustment has revived public concerns over power affordability, especially as Davao Light continues to expand its service coverage following its takeover of the Northern Davao Electric Cooperative’s (Nordeco) franchise areas.
In November 2025, a newly organized consumer movement urged Davao Light to maintain transparency as it assumed responsibility for Nordeco’s distribution network. The call came after residents experienced a P1.5625/kWh increase in their monthly bills, the second-largest hike since May 2024’s P1.6254/kWh spike which was attributed to El Niño-related supply constraints and the volatility of prices in the Wholesale Electricity Spot Market.
The Mindanao Alliance for Progress (MAP) earlier said Dabawenyos deserve clear assurances that the billions of pesos required to rehabilitate Nordeco’s aging and unreliable power system will not be quietly passed on to existing customers in Davao City. DEF