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A consumer advocacy group has called on Davao Light and Power Co. to strengthen its long-term electricity supply strategy and reduce its exposure to the volatile Wholesale Electricity Spot Market (WESM), as the utility expands its distribution network across Davao del Norte and other areas.
The Davao Consumer Movement (DCM) said the sharp increase in electricity rates in recent months should prompt closer scrutiny of how the distribution utility forecasts demand, secures contracted power, and protects consumers from sudden movements in generation costs.
In a position paper submitted on August 24 to Davao City Councilor Louie John Bonguyan, chairperson of the City Council Committee on Energy and Water, DCM convenor Ryan Amper raised concerns over the impact of rising power bills on households, small businesses and other sectors.
Rate Increase
Davao Light’s residential rate increased from ₱9.71 per kilowatt-hour (kWh) in December 2025 to ₱13.09 per kWh for the July 11 to August 10, 2026 billing period.
The utility has attributed recent adjustments largely to higher generation charges, including increased costs of electricity purchased from the WESM amid supply constraints and changes in the availability of generating plants.
But DCM said the issue should not be limited to explaining the immediate causes of higher generation costs.
“Consumers should also be given a clear picture of how utilities forecast future demand, contract sufficient supply and limit their exposure to fluctuations in the spot market,” Amper said.
Long-Term Supply Urged
The WESM allows the buying and selling of electricity outside bilateral power supply agreements. Heavy dependence on spot-market purchases can leave utilities exposed to sudden price increases, particularly when their contracted supply is insufficient to meet demand.
DCM warned that this exposure could result in unpredictable and substantial adjustments in consumer electricity bills.
“We demand that Davao Light immediately conduct a Competitive Selection Process to secure competitively priced, long-term power supply agreements with reliable generation plants,” Amper said, adding that this could reduce dependence on volatile spot-market purchases and provide greater price stability.
The consumer group also appealed to the Davao City Council to support a request for the Energy Regulatory Commission (ERC) to examine whether the recovery of recent WESM-related increases could be deferred or staggered instead of being immediately passed on in full to consumers.
Davao Light has previously obtained regulatory approval to spread the recovery of a portion of higher generation charges across several billing periods. It has also pursued additional power allocations and supply arrangements, including efforts to obtain more power from the Power Sector Assets and Liabilities Management Corp.
Network Expansion Continues
The calls for a stronger supply strategy come as Davao Light continues to expand its network and service coverage.
The utility recently inaugurated its 29th distribution substation in Barangay San Pedro, Panabo City, Davao del Norte, to support the growing power requirements of an industrial estate and surrounding communities.
The 10-megavolt-ampere facility, energized on August 2 and successfully loaded on August 8, is the fourth Davao Light substation in Panabo City.
It was designed to meet the electricity requirements of the 63-hectare Anflo Industrial Estate, a Philippine Economic Zone Authority-accredited special economic zone.
Davao Light said the facility marked the completion of the project’s first phase. A second phase is planned to add 33 MVA of capacity and is targeted for completion by December next year.
The Phase 2 facility is also expected to operate as a fully digital substation with automated monitoring and real-time data transmission to help engineers identify and address operational issues.
Davao Light President and Chief Operating Officer Enriczar Tia said the project forms part of the company’s continued investment in a stronger and more resilient distribution network.
The expansion also comes as Davao Light takes on a larger service territory, including the Island Garden City of Samal and areas in Davao del Norte and Davao de Oro.
DCM said the utility should publicly disclose its projected capacity requirements and procurement plans as it integrates new areas into its franchise.
“Existing long-term ratepayers must not suffer degraded service or be made to implicitly subsidize the integration of new coverage areas,” Amper said.
As demand grows across its expanding franchise, the group said, the utility faces increasing pressure to ensure that investments in distribution infrastructure translate into reliable service and greater protection for consumers against abrupt increases in power rates.
Source:
https://mb.com.ph/2026/08/04/davao-city-council-urges-davao-light-to-secure-additional-power-supply
