Residents of Davao City will receive a welcome holiday gift on their electricity bills this December. The Davao Light and Power Company (Davao Light) has announced a reduction in its residential power rate for the billing period covering the festive season.
Rate Reduction Details and Grid Stability
The utility firm confirmed a decrease of P0.3477 per kilowatt-hour (kWh). This adjustment brings the new rate down to P9.7135/kWh for December 2025, compared to the November rate of P10.0612/kWh. The lower charge will be applied to all electricity bills issued from December 11, 2025, to January 10, 2026.
In related news, Davao Light assured its customers that the Mindanao power grid remains stable. The company confirmed that no yellow alert status has been declared for September 2025. This is in contrast to the situation in August when certain grid alerts were issued in parts of the interconnected Visayas-Mindanao network.
Primary Driver: Lower Spot Market Prices
The company attributed the rate reduction primarily to a decline in prices at the Wholesale Electricity Spot Market (WESM). As one of Davao Light's sources of power supply, lower prices procured from this market allow the distribution utility to pass on the resulting savings directly to its consumers.
Davao Light's advisory explained that monthly power rate adjustments are a regular occurrence. These fluctuations are driven by several factors, including:
- Changes in market prices at WESM.
- Variations in fuel costs for power generation.
- Other factors affecting the overall supply chain.
Consequently, consumers can expect rates to move up or down in future months based on prevailing market conditions.
Call for Continued Prudence Amid Holiday Cheer
Despite the favorable rate decrease, Davao Light issued a reminder for customers to remain conscious of their electricity consumption. Energy use in households typically spikes during the holiday season due to festive lighting, family gatherings, and increased use of appliances.
The company cautioned that power prices are inherently volatile and subject to sudden shifts, especially during peak demand periods like Christmas and New Year celebrations. While December rates are lower, power costs may rise in the coming months as demand increases and market dynamics change.
Davao Light encouraged consumers to practice efficient energy management to avoid unexpected high bills. The reminder noted that the holiday season often brings numerous other expenses, making it crucial to keep power consumption in check. As the year ends, the company stressed that customers should enjoy the current reduction but also stay prepared for possible rate increases in the future, driven by changing market prices and demand pressures.
