CUSTOMERS of Davao Light and Power Co. Inc. (Davao Light) will pay higher electricity bills this month after the distribution utility announced an increase in its residential electricity rate, citing higher generation costs driven by the spike in Wholesale Electricity Spot Market (WESM) prices and reduced power supply.
In its latest customer advisory, Davao Light said the overall residential electricity rate for the billing period July 11 to August 10, 2026 increased by P0.78 per kilowatt-hour (kWh), bringing the residential rate to P13.09 per kWh, up from P12.30 per kWh in the previous billing cycle.
The utility attributed the increase primarily to higher generation charges, particularly the rising cost of electricity sourced from the Wholesale Electricity Spot Market (WESM).
According to Davao Light, electricity prices in the spot market surged because several major power plants across the country were unavailable due to scheduled maintenance, forced outages, and operational disruptions.
“The increase was mainly driven by higher generation charges, particularly the higher cost of electricity purchased from the Wholesale Electricity Spot Market (WESM). Higher market prices were mainly due to the outage of several major power plants across the country,” Davao Light stated.
The company added that some power generation facilities were also affected by the magnitude 7.8 earthquake that struck Southern Mindanao on June 8, 2026, further tightening the country's electricity supply.
“Together, these events reduced the available electricity supply while demand remained relatively high, resulting in tighter supply conditions and higher market prices," the company added.
The latest adjustment marks the second consecutive monthly increase in residential electricity rates.
In the previous billing period, Davao Light also implemented an increase that brought the residential rate to P12.30 per kWh from P10.35 per kWh, following higher generation charges resulting from tight power supply conditions in the Mindanao grid.
Generation charges account for the largest portion of consumers' electricity bills and are generally influenced by the cost of electricity purchased from power suppliers, such as the WESM. Unlike distribution charges, generation costs are considered pass-through charges, meaning distribution utilities do not earn from these adjustments and merely collect the amount on behalf of electricity suppliers.
The utility encouraged customers to adopt energy-saving practices to help cushion the impact of higher electricity prices on household expenses.
"We encourage our customers to continue practicing energy-efficient habits to help manage their electricity consumption and monthly bills," the company said.
Consumers may reduce electricity consumption by switching off appliances when not in use, maximizing natural lighting and ventilation during the day, setting air conditioners at efficient temperatures, and using energy-efficient appliances.
Davao Light serves Davao City and several areas in Davao del Norte, including Panabo City, the Island Garden City of Samal, and the municipalities of Carmen, Braulio E. Dujali, and Santo Tomas. The utility has also expanded its franchise to Tagum City and portions of Davao del Norte following regulatory approvals, making reliable and affordable power supply increasingly important to households and businesses across its growing service area. DEF
