Davao Light's Power Rate Hike Draws Sharp Criticism from Consumer Advocates
The Davao Consumer Movement (DCM) has issued a strong statement expressing grave concerns regarding the recent power rate increase implemented by Davao Light and Power Company. This development follows the utility's expansion into the provinces of Davao del Norte and Davao de Oro, raising questions about the financial implications for consumers across the region.
Substantial Increase in Electricity Costs
In January 2026, Davao Light raised its rates by a significant P2 per kilowatt-hour, elevating the cost from P9.71/kWh in December 2025 to P11.72/kWh. For an average household that consumes approximately 200 kWh monthly, this adjustment translates to an additional P400 on their electric bill. This added expense places a direct burden on families who are already grappling with the escalating costs of living, including food, transportation, and other essential services.
Company's Explanation and Consumer Skepticism
Davao Light has attributed the rate hike to several factors, primarily citing higher supply prices from the Wholesale Electricity Spot Market (WESM). The company pointed to multiple power plant outages that have driven market prices upward. Additionally, Davao Light mentioned the implementation of a new government charge, the Green Energy Auction Allowance (GEA-All) under ERC Case No. 2025-127 RC, as another contributing element.
However, while these reasons may account for a portion of the increase, they do not provide a complete picture. Consumers are left wondering whether the billions of pesos being invested in Davao Light's expansion projects into Davao del Norte and Davao de Oro are also playing a role in the higher rates. The lack of clarity and transparency in the company's explanation has become a source of deep concern for many residents.
Broken Promises and Eroding Trust
For years, Davao Light has been recognized for offering some of the lowest electricity rates in the Philippines. This sudden and steep increase has come as a shock to numerous households, undermining trust and raising doubts about the company's commitment to affordability. During congressional and Senate hearings for Republic Act 12144, Davao Light made promises to keep rates low despite its expansion efforts. Today, that assurance appears to be fading, leaving consumers feeling betrayed and financially strained.
Call for Accountability and Fairness
At a time when families are already overburdened by rising expenses, power rates should not become another source of anxiety. The Davao Consumer Movement emphasizes that consumers deserve honesty and accountability from their service providers. Davao Light must be more transparent about the true reasons behind this increase and remain mindful of the impact on the communities it serves.
The Davao Consumer Movement has pledged to continue monitoring this issue closely. They stand in solidarity with consumers, demanding fairness, transparency, and the fulfillment of promises made. As the situation unfolds, the movement urges Davao Light to address these concerns promptly to restore confidence among its customer base.
