DABAWENYOS can breathe a sigh of relief this month as residential electricity rates posted a significant decline, easing the burden on households still reeling from January’s sharp spike in power costs.
Davao Light and Power Co., Inc. (Davao Light) announced that the overall residential electricity rate dropped by P1.42 per kilowatt-hour (kWh) this February, bringing the new rate down to P10.30/kWh from last month’s P11.72/kWh. The updated rate covers electricity bills received from February 11 to March 11, 2026.
The reduction marks a welcome turnaround from January, when consumers faced one of the steepest month-on-month increases in recent years. During the previous billing cycle, covering January 11 to February 10, 2026, rates climbed by P2.0052/kWh from P9.7135/kWh in December 2025 to P11.7187/kWh, largely driven by surging generation costs.
According to Davao Light, the February decrease was primarily fueled by lower prices in the Wholesale Electricity Spot Market (WESM), one of the utility’s key power supply sources.
Spot market prices had spiked in January due to power plant outages and supply constraints, forcing distribution utilities to procure electricity at higher rates.
With improved supply conditions this month, market prices softened, translating into lower generation charges for consumers.
“This adjustment is mainly driven by lower power supply prices from the Wholesale Electricity Spot Market (WESM), one of Davao Light's sources of power supply,” the statement said.
In contrast, January’s rate hike occurred despite a slight reduction in transmission charges announced by the National Grid Corporation of the Philippines (NGCP).
Data showed that the average transmission rate for the December 2025 billing period, reflected in January bills, slipped by 0.68 percent to P1.3455/kWh from P1.3547/kWh.
Of that amount, P0.5971/kWh was allocated to Ancillary Services, which cover reserve power costs, while P0.6058/kWh represented transmission wheeling charges for delivering electricity across the national grid.
NGCP clarified that it charges around 60 centavos per kWh for delivery services and emphasized that transmission costs are pass-through charges regulated by the Energy Regulatory Commission.
However, the modest decline in transmission charges in January was overshadowed by a surge in generation costs and the implementation of the Green Energy Auction Allowance (GEA-All), a government-mandated charge designed to support renewable energy procurement.
Although slight reductions in the Feed-In Tariff Allowance (FIT-All) and a Renewable Energy Certificate refund provided partial relief, these were not enough to offset elevated spot market prices at the time.
This February’s lower rate reflects more stable supply conditions and reduced reliance on high-priced spot market purchases. Still, Davao Light cautioned that electricity prices remain vulnerable to market volatility, particularly fluctuations in WESM rates and unforeseen plant outages.
The distribution utility encouraged customers to continue practicing energy efficiency measures, noting that responsible consumption remains the most effective way to manage electricity bills amid changing market conditions.
While the P1.42/kWh reduction does not fully erase the impact of January’s spike, Davao Light said it signals a positive shift for consumers and underscores how dynamic supply-and-demand factors directly affect monthly power costs in Davao City. DEF