DAVAO Light and Power Company Inc. (Davao Light) has reminded its customers that electricity service disconnections for unpaid bills will remain suspended until October 2026 following an advisory issued by the Energy Regulatory Commission (ERC) extending consumer protection measures under Executive Order (EO) No. 110.
The utility said the temporary suspension covers electricity bills for the August to October 2026 billing periods and applies to both residential and non-residential customers within its franchise area.
Under the advisory, consumers will not face service disconnection for unpaid bills during the covered months. However, Davao Light encouraged customers who have the financial capacity to continue paying their electricity bills on time to prevent unpaid balances from accumulating.
"Customers who are able to pay are encouraged to continue settling their bills on time to help manage their household budget and avoid larger accumulated payments in the succeeding months," Davao Light said in its advisory.
The company also urged consumers to monitor its official communication platforms for updates and further guidance on the implementation of the ERC directive.
The extension comes as households and businesses across the Davao Region continue to experience rising electricity costs driven largely by higher generation charges.
According to a recent analysis by the Davao Consumer Movement (DCM), residential electricity rates increased across all four power distribution utilities in the region between December 2025 and June 2026. While Davao Light recorded the largest overall increase during the period, it continued to maintain one of the lowest residential electricity rates among the four distributors.
The report showed that Davao Light's residential electricity rate increased from P9.71 per kilowatt-hour (kWh) in December 2025 to P12.30 per kWh in June 2026. The company subsequently implemented another increase for the July 11 to August 10, 2026 billing period, raising the residential rate to P13.09 per kWh.
Meanwhile, the Northern Davao Electric Cooperative (Nordeco) continued to post the highest residential electricity rate in the region at P14.00 per kWh, followed by the Davao Oriental Electric Cooperative (Doreco) at P13.01 per kWh, while the Davao del Sur Electric Cooperative (Dasureco) registered the most stable residential rates during the same period.
DCM attributed the continued increase in electricity prices primarily to fluctuations in the Wholesale Electricity Spot Market (WESM), where distribution utilities procure part of their power requirements. Utilities with greater dependence on the spot market are generally more susceptible to spikes in generation costs whenever electricity supply becomes constrained.
Among the four utilities, Nordeco sources about 78 percent of its power from WESM, followed by Davao Light at approximately 40 percent, Doreco at 12.87 percent, and Dasureco at just 0.53 percent.
The report noted that utilities with a larger share of long-term power supply agreements generally experience more stable electricity rates than those relying heavily on the spot market.
Earlier, Davao Light said the increase in generation charges was mainly caused by elevated WESM prices resulting from the simultaneous outage of several major power plants in Luzon, the Visayas, and Mindanao. The utility also cited the effects of the magnitude 7.8 earthquake that struck Southern Mindanao in June, along with scheduled maintenance and forced outages of several generating facilities, which tightened available power supply while electricity demand remained high.
The continued rise in electricity rates has also prompted calls for greater transparency from local officials.
During a privilege speech before the Davao City Council, Councilor Danilo "Danny" Dayanghirang called on Davao Light to publicly explain the successive increases in residential electricity rates and the basis for the generation charges being passed on to consumers.
Dayanghirang noted that residential electricity rates have climbed by more than P3 per kWh since December 2025, saying the sharp increase has placed additional financial pressure on nearly two million Dabawenyos. He stressed that consumers deserve a clearer understanding of how pass-on generation charges are computed, particularly as higher electricity costs continue to affect household budgets and increase the operating expenses of government offices and other public facilities.
The councilor said greater transparency from the distribution utility would help consumers better understand the recurring adjustments reflected in their monthly electricity bills.
Under the Electric Power Industry Reform Act (Epira), generation charges are considered pass-through costs that fluctuate based on prevailing market prices and fuel costs. Distribution utilities do not earn from these charges, as they merely collect the corresponding payments on behalf of electricity suppliers. Distribution charges, meanwhile, remain subject to regulation by the ERC and cannot be adjusted without regulatory approval.
The Department of Energy has previously reported that the Philippines continues to have the highest average residential electricity rate in Southeast Asia, highlighting the growing need for measures that will stabilize electricity prices and lessen consumers' exposure to volatile spot market prices.
While the suspension of electricity disconnections offers temporary relief, Davao Light reminded consumers that the policy does not waive payment obligations. Customers are encouraged to continue paying their monthly bills whenever possible to avoid accumulating larger balances that will become due once the no-disconnection period ends in October 2026. DEF
