DAVAO CITY, Philippines — Residential electricity rates in Davao surged 34.8 percent over seven months, sparking renewed demands from consumer advocates and city officials to overhaul the nation’s power industry policies as households struggle with mounting bills.
For the billing period spanning July 11 to August 10, Davao Light and Power Co., Inc. (DLPC) raised residential rates by ?0.79 per kilowatt-hour, bringing the total to ?13.09/kWh from ?12.30/kWh the previous month. Compared with December 2025’s rate of ?9.71/kWh, consumers face a P3.38/kWh increase— a steep climb amid broader inflation pressures on food and fuel.
Consumers feel the squeeze
Maria Panuncialman, a resident of Barangay Cabantian, saw her household bill jump more than ?2,000 in a single billing cycle.
“Not sufficient, because it is too high [an] amount for the increase,” she said, adding that her family has limited air conditioning use to offset costs. “Budgeted na ang pera … Increase ng pangkalahatan, pero ang sahod, hindi nag-increase,” Panuncialman told Davao Today.
Committees on Civil, Political and Human Rights; and Labor and Employment chair Councilor Pamela Librado-Morata highlighted extreme cases, including one household whose monthly bill reportedly increased 400% from ?3,294 to ?16,982 despite no significant rise in consumption.
Davao Light attributed the hike to higher generation charges from the Wholesale Electricity Spot Market (WESM), citing plant outages across Luzon, Visayas, and Mindanao, plus supply constraints following a magnitude 7.8 earthquake in Southern Mindanao last June.
The utility characterized these as “pass-through charges” under the Electric Power Industry Reform Act (EPIRA) of 2001, meaning distribution utilities merely collect and remit supplier costs without earning additional revenue. To cushion the blow, Davao Light secured approval from the Energy Regulatory Commission (ERC) to defer a portion of the generation charge, spreading recovery beginning August until December.
Local officials demand transparency
Committees on Finance, Ways and Means and Appropriations; and Games and Amusements chair Councilor Danilo Dayanghirang called for fuller disclosure to consumers, questioning why rates continue climbing despite Mindanao hosting major coal-fired generation facilities.
“The people have the right to know why their electricity bills continue to increase month after month. It is time for Davao Light to answer the questions of the public,” he said in a Facebook post.
Dayanghirang invited Therma South Inc. officials to appear before the council July 27 and supported opening Davao’s power supply to additional generators to foster competition.
Librado-Morata urged apublic hearing with the ERC, Department of Energy (DOE), and National Grid Corporation of the Philippines (NGCP), pointing to earlier DOE-Mindanao reports confirming stable regional power supplies.
Beyond households, the hikes strain government operations, increasing spending on hospitals, schools, traffic systems, and street lighting.
EPIRA faces renewed scrutiny
Rauf Sissay, Bagong Alyansang Makabayan–Southern Mindanao (BAYAN-SMR) representative, argued the rate hikes reflect structural flaws in EPIRA itself.
“Bunga ni siya sa kasamtangan neoliberal nga nagapalay sa atong ekonomiya sa Pilipinas,” Sissay said in Cebuano, describing how the law privatized the power industry and reduced government control over essential services.
He called for repealing EPIRA, removing value-added tax on electricity, and strengthening regulation of power utilities.
“Long term, dapat pud mag-explore ang gobyerno sa pag-diversify sa atong energy sources,” he added, urging investment in renewables and industrialization policies to ease economic hardship.
Former Bayan Muna Rep. Carlos Isagani Zarate criticized President Ferdinand Marcos Jr.’s State of the Nation Address acknowledgment of high power costs as potentially hollow without action.
“If Malacañang is finally recognizing what consumers have been asserting for years—consumers should not pay for electricity they never used, nor for the inefficiencies and power theft that distribution utilities ought to manage—what is needed now is action, not more words,” Zarate said.
He demanded the administration certify pending legislative measures as urgent, including exemptions for systems loss charges from VAT. Legislative groundwork for this reform dates to 2015, with House Bill 1616 approved on second reading in 2017.
“Political willpower—not rhetoric—will decide whether electricity bills actually go down,” Zarate concluded.
Under ERC Resolution No. 20, Series of 2017, private distribution utilities like Meralco and Davao Light face a maximum recoverable feeder loss cap of 5.50 percent, translating to roughly ?0.50 to ?0.70/kWh on residential bills (about ?100 to ?140 for a household consuming 200 kWh per month). Utilities absorb any excess loss as operational expense.
Marcos Jr.’s response
President Marcos addressed the issue in his fifth SONA, acknowledging high power costs burden consumers while announcing progress on 200 energy projects totaling nearly 10,000 megawatts in capacity. Forty-five projects are complete, 31 expected this year, with 124 targeting completion by 2028.
He also urged Congress to pass the “Sariling Kuryente Act” to facilitate affordable solar panel and battery storage installations for homeowners.
Consumer advocates argue promises must translate to signed laws for lasting relief. As bills continue climbing, pressure mounts on lawmakers to deliver tangible fixes rather than incremental announcements. (davaotoday.com)
