Davao Light raises residential electricity rates amid supply concerns

Davao Light and Power Co. (Davao Light) has increased its residential electricity rate to P13.33 per kilowatt-hour (kWh) for the October 11 to November 10, 2026, billing period. The P0.09/kWh increase is attributed to higher generation charges driven by elevated Wholesale Electricity Spot Market (WESM) prices and tight power supply conditions.

To mitigate rising costs and reduce exposure to fluctuating spot market prices, the Davao City Council has passed a resolution seeking additional power allocations from Therma South Inc. (TSI) for Davao Light. The council is also urging TSI to expand its generation capacity by 320 megawatts (MW).

Despite the rate hike and the impending impact of El Niño on hydroelectric power plants, Davao Light has assured consumers that the electricity supply remains stable. The company noted that while dry spells typically reduce renewable energy capacity, a diversified energy mix including coal-fired plants and secured Power Supply Agreements (PSAs) will help maintain grid reserves. In the event of a severe supply crunch, the utility is prepared to activate contingency measures such as the Department of Energy’s Interruptible Load Program.