RESIDENTS in Davao and the rest of Mindanao have little to worry about despite a yellow alert issued earlier this month, as the power grid remains stable and electricity rates are expected to see only minimal changes in the coming billing cycle.
The National Grid Corporation of the Philippines (NGCP) declared a yellow alert on August 1 from 6 p.m. to 8 p.m. after two generating plants in Mindanao and Visayas went on forced shutdown, reducing available reserves.
At that time, Mindanao recorded an available capacity of 2,827 megawatts (MW) against a peak demand of 2,667 MW. The alert was lifted by 7 p.m.
A yellow alert is issued when operating reserves fall below the grid’s contingency requirement, though it does not yet indicate critical conditions that would lead to rotational outages.
“Since there is a yellow alert, naa yata duha ka planta na nag-shut down. So affected ang power supply in Mindanao and it also affected the supply here in Davao,” said Fermin Edillon, head of Davao Light and Power Company’s (Davao Light) Reputation Enhancement Department, during a media forum, Wednesday, August 14.
Edillon assured, however, that the temporary supply strain is unlikely to cause significant spikes in consumer bills. Davao Light recorded a billing rate of P8.70 per kilowatt-hour (kWh) for the July-August cycle, one of the lowest in the region, and lower compared to P9.10/kWh in May and P9.55/kWh in April. Rates for August-September have yet to be finalized but are expected to remain stable.
As of August 15, Mindanao’s supply situation has improved, with 3,497 MW in generating capacity, a system peak demand of 2,316 MW, and an operating margin of 1,181 MW — ample reserves to cushion demand fluctuations.
Energy officials note that while yellow alerts signal vulnerabilities in the power system, Mindanao continues to maintain a comfortable surplus. The Department of Energy-Mindanao (DOE-Mindanao) earlier said the region is expected to remain free from major supply disruptions throughout 2025, unlike Luzon and Visayas, which continue to face challenges.
DOE-Mindanao Senior Science Research Specialist Erick George D. Uy, in a June 19 forum organized by JCI Davao, attributed Mindanao’s stability to improved grid reliability and the consistent surplus of generation capacity. He also highlighted the Wholesale Electricity Spot Market (WESM), launched in the region in January 2023, which allows real-time trading of electricity to balance supply and demand more efficiently.
By contrast, Luzon and Visayas continue to struggle with high demand and thinning reserves, particularly during the dry months. In April 2024, Luzon reached a record-high peak demand of 14,016 MW, surpassing projections and triggering repeated yellow and red alerts due to the El Niño-induced heat. DEF