THE Power Assets and Liabilities Management Corporation (PSalm) is set to provide a “sufficient supply” of energy to Davao Light and Power Co., following an appeal to retain the current amount of supply it provides to the electric distributor.
Councilor Louie John Bonguyan, who chairs the 21st Davao City Council’s Committee on Energy and Water, said that PSalm has responded to the appeal of the local government and Davao Light, stating that it will provide sufficient supply, although Davao Light did not specify the exact amount.
“Wala nabawasan, wala nadagdagan ang supply na ilang ihatag sa Davao Light (There has been no decrease and no increase in the supply that they will provide to Davao Light),” he said during the Pulong-Pulong sa Dabawenyos on April 8, 2026, at the Sangguniang Panlungsod.
Bonguyan added that he had a discussion with Davao Light, which informed him of a possible minimal increase in the power rate this April. However, the increase has yet to be determined due to fluctuating prices in the Wholesale Electricity Spot Market (WESM).
To recall, on January 21, 2026, the 21st City Council passed a resolution urging PSalm to refrain from reducing Davao Light’s power supply contract, citing that this could lead to higher electricity rates in the city.
PSalm currently provides about 30 percent of Davao Light’s total power supply, making it a critical source of affordable electricity for Davao City. However, the state-owned firm has opted to cut its supply beginning in 2026, which could result in higher power costs for consumers.
If PSalm proceeds with the reduction, Davao Light will be forced to source more electricity from the WESM, where power prices are significantly higher.
The reduction in PSalm’s power supply to Davao Light is due to the aging condition of its power plants, which has led to decreased generating capacity.
PSalm supplies some of the cheapest power in the market, largely sourced from the Agus–Pulangi hydropower complex.
Davao Light explained that it draws power from multiple sources, with about 50 percent coming from renewable energy. These include PSalm and Hedcor hydroelectric plants in southern Mindanao. Around 20 to 30 percent comes from the Therma South coal plant, while the remaining supply is sourced from the WESM.
The company added that relying on a single power supplier is not advisable, as an outage in one plant could disrupt electricity service across the entire coverage area. Having multiple sources ensures that power remains available even if one facility goes offline. RGP