THE Davao Light and Power Company (Davao Light) has belied allegations that the increase in power rates for the July 11-August 10, 2026 billing period was due to its expansion into Davao del Norte.
Enriczar Tia, Davao Light president and COO, said the company's distribution charges have remained constant unless it proposes a new amount that is approved by the Energy Regulatory Commission (ERC). He said the generation charge was the one that increased, due to the higher price in the spot market.
“We all have to understand that these are generation charges; these are passed-on charges to the consumers. Dili mu-gain si Davao Light [Davao Light doesn't gain anything from this because] ani kay we gain only at the distribution charge which is fixed,” he said in a media interview on July 21, 2026, at the Sangguniang Panlungsod.
Tia added that the expansion has nothing to do with the increased power rates, adding that it could even become advantageous later on since Davao Light could bid with more suppliers, allowing the company to command better prices.
He also cited the recent magnitude 7.8 earthquake that struck offshore Sarangani, which caused two power plants to go offline. The plants had to undergo maintenance, resulting in a decrease in electricity supply relative to demand. He said this supply shortfall led to an increase in electricity prices.
He said they expect power rates to normalize from September to December, as long as there are no severe weather disturbances that would result in power plant outages.
At present, Davao Light has more than 500,000 connections in Davao City. With its expansion into Davao del Norte, it expects an additional 200,000 connections.
Council questions Davao Light on rates
Davao Light was invited by the city council amid concerns over rising electricity bills. Davao City Councilor Danilo Dayanghirang, in a privilege speech, outlined the amount the city government spends on electricity for its government buildings and streetlights, highlighting how the city pays a huge amount for them. He said that with the increased prices, the city would have to increase its appropriation.
Dayanghirang also highlighted how Davao Light has increased its rates over time and how this has affected Dabawenyos. In a Facebook post, the councilor asked the company to explain the increase, citing how it has become an added burden for Dabawenyos.
Meanwhile, Councilor Louie John Bonguyan said the electricity rate has climbed once again, which would affect ordinary Dabawenyos who have to budget for food and bills, as well as small businesses and even students.
Bonguyan acknowledged that Davao Light has faced multiple challenges, such as natural disasters and prices in the spot market, but said Dabawenyos seem to be paying the price for them. He then called on the ERC, National Grid Corporation of the Philippines (NGCP), and Davao Light to be transparent, stabilize the power supply, and promote renewable energy.
“Our people deserve affordable, reliable electricity, not endless hardship,” he said.
Deferred increase in power rates
Davao Light's invitation to the council came after members of the city council raised concerns over the effects of the increase on Dabawenyos.
Tia said that, as a measure to ease the burden on consumers, Davao Light deferred the collection, which is spread over five months so that the impact would not heavily affect customers.
The ERC has ordered all distribution utilities in the Philippines to suspend disconnections for customers who failed to pay their August to October billing, citing the effects of the war in the Middle East on the country.
Tia said the advisory from the ERC does not mean that consumers should no longer pay their electric bills, since not paying them would result in a compounded bill that would be difficult for them to settle. He suggested that consumers pay on time to avoid accumulating a huge bill.
On Councilor Dayanghirang's suggestion of welcoming power distributors to the city, Tia said they welcome the idea, citing that it is a long-term solution since there is a need to build more power plants in the country.
He said that with the addition of more power plants, there would be a stable power supply and enough electricity. He said that if supply becomes higher than demand, the price would decrease. RGP
