Davao Households To Save On Electricity Bills As ERC Halts Renewable Energy Charge

Residential consumers of Davao Light and Power Company will see lower electricity bills this May after the utility reduced its residential power rate amid lower transmission charges and the temporary suspension of a renewable energy-related fee ordered by regulators.

In an advisory, Davao Light said the residential electricity rate for the May 2026 billing cycle dropped by ₱0.18 per kilowatt-hour (kWh), bringing the overall rate to ₱10.35/kWh from April’s ₱10.53/kWh. The new rate applies to bills received from May 12 to June 10.

The utility said the reduction was mainly driven by lower transmission charges imposed by the National Grid Corporation of the Philippines (NGCP), along with the temporary suspension of the ₱0.0371/kWh Green Energy Auction Allowance (GEA-All).

The Energy Regulatory Commission (ERC) earlier directed distribution utilities to halt the collection of the GEA-All for the May and June 2026 billing periods. The allowance is a pass-through charge collected from consumers to support the government’s renewable energy initiatives under the Green Energy Auction Program, which aims to increase the country’s renewable energy capacity.

With the latest adjustment, households consuming around 200 kWh monthly are expected to save roughly ₱36 on their electricity bills compared with the previous month.

Second Straight Monthly Reduction

The May adjustment also marks the second consecutive month of lower residential electricity rates for Davao Light customers, offering additional relief to households during the warm and dry season when electricity demand typically rises.

In April 2026, Davao Light implemented a residential rate of ₱10.53/kWh following higher transmission-related charges and the continued collection of the GEA-All before the ERC suspended the fee.

“The rate reduction comes at the perfect time,” Davao Light Head of Reputation Enhancement Fermin Edillon said. “With the warm and dry season, electricity demand will be high as heat drives up the use of air-cooling appliances. Moreover, with school out, students are spending most of their time at home.”

“While power consumption may go up, we encourage everyone to practice energy efficiency so families will not worry about high bills,” he added.

Energy Efficiency Urged

Despite the lower rates, Davao Light reminded customers that electricity prices remain subject to monthly fluctuations due to factors such as generation costs, transmission charges, foreign exchange movements, and government-imposed charges passed on to consumers.

The company encouraged households to adopt energy-saving practices to better manage power consumption and reduce electricity expenses.

Among the measures recommended by the utility are unplugging appliances and gadgets that are not in use to avoid “phantom load” or standby power consumption. Davao Light said appliances such as televisions, gaming consoles, printers, and computers continue to draw electricity even when switched off but left plugged in.

The utility also advised consumers to maximize natural lighting and ventilation by opening curtains and windows during cooler hours of the day to lessen dependence on lighting fixtures and air-cooling appliances.

In addition, households were urged to inspect home wiring regularly for exposed or damaged insulation, warning that faulty wiring could lead to electricity leaks and unnecessary energy losses.

Source:

https://www.sunstar.com.ph/davao/davao-light-lowers-residential-power-rates

https://www.mindanaotimes.com.ph/davao-light-announces-lower-residential-electricity-rate-for-may-billing/

https://www.sunstar.com.ph/davao/slight-dip-in-april-electric-bill