Davao Light hikes June residential power rates

Residential consumers to pay nearly 19 percent more due to higher generation charges
Davao Light hikes June residential power rates
Davao Light/File Photo
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RESIDENTIAL consumers served by Davao Light and Power Co. Inc. (Davao Light) will face higher electricity bills this month after the utility increased its overall residential rate to P12.30 per kilowatt-hour (kWh) for the June 2026 billing cycle, reflecting a P1.95/kWh increase from May's rate of P10.35/kWh.

The new rate applies to electricity bills received from June 11 to July 10, 2026, representing an increase of nearly 18.8 percent from the previous month's residential rate.

For consumers, the adjustment translates into higher monthly electricity expenses. A household consuming 200 kWh per month, for instance, would pay approximately P2,460 under the new rate, compared to around P2,070 last month. This means an additional P390 in electricity costs for the same level of consumption.

Davao Light said the increase was driven by higher prices in the Wholesale Electricity Spot Market (WESM).

“The rate adjustment is attributed to higher prices from the Wholesale Electricity Spot Market (WESM) due to tight power supply conditions brought about by multiple power plant outages,” the utility said in an advisory.

According to the company, power supply constraints resulting from outages in several generating facilities pushed electricity prices higher in the spot market, leading to increased generation charges that were passed on to consumers.

The utility also emphasized that electricity rates remain subject to market fluctuations, which can result in monthly adjustments in power charges. It explained that generation costs, particularly those sourced from the WESM, vary depending on prevailing supply and demand conditions in the power sector.

The Davao Light update contrasts with the National Grid Corporation of the Philippines (NGCP) announcement of a slight reduction in consumers’ electricity bills this June after its transmission charges declined for the May 2026 billing period, citing decreases in both transmission wheeling and ancillary service (AS) rates. 

NGCP said the average transmission rate dropped by 9.33 percent, from ₱1.5983 per kilowatt-hour (kWh) in April to ₱1.4492 per kWh in May. The reduction will appear in the June electricity bills of consumers nationwide.

NGCP said the decline was mainly due to lower fees for electricity transmission through the national grid and reduced ancillary service costs needed to ensure grid stability. Transmission wheeling charges fell by 6.99 percent to ₱0.5607 per kWh, while ancillary service rates decreased by 10.73 percent to ₱0.7220 per kWh.

Meanwhile, Davao Light noted that while consumers may experience changes in their monthly bills, these adjustments are largely influenced by factors beyond the distribution utility's control, including fuel costs, power supply availability, and spot market prices.

In light of the increase, Davao Light encouraged customers to adopt energy-efficient practices to help manage their electricity expenses. The utility urged households and businesses to monitor their power consumption, switch off unused appliances, and maximize energy-saving measures to cushion the impact of higher electricity costs.

The company also reminded consumers that power rates are reviewed monthly and may increase or decrease depending on market conditions and developments in the country's power supply situation.

A full breakdown of the June 2026 electricity rates is available on Davao Light's official website. DEF

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