The Davao Consumer Movement (DCM) is urging Davao Light and Power Co. to strengthen its power procurement strategy and reduce dependence on volatile Wholesale Electricity Spot Market (WESM) purchases as electricity rates continue to rise in Davao.
In a position paper submitted to City Councilor Louie John Bonguyan, chairperson of the City Council Committee on Energy and Water, the consumer group called for stronger measures to protect households, businesses, and other electricity users from further price increases.
“We need to raise the alarm regarding the relentless surge in electricity rates currently burdening households, small businesses, and key economic sectors across Davao City and its surrounding municipalities,” DCM convenor and consumer advocate Ryan Amper said.
Davao Light’s residential rate rose from P9.71 per kilowatt-hour (kWh) in December 2025 to P13.09/kWh in July 2026.
While generation charges and movements in the WESM are commonly cited as factors behind higher electricity rates, Amper said consumers should also scrutinize how distribution utilities plan their power requirements and manage supply contracts.
“A closer examination should also look at how utilities forecast demand, secure contracted power supply, and manage their exposure to volatile spot-market prices,” he said.
DCM said continued reliance on WESM purchases could leave consumers vulnerable to sharp price movements, particularly during periods when contracted power supply is insufficient to meet demand.
The group is asking the Davao City Council to support its appeal to the Energy Regulatory Commission (ERC) to consider deferring or staggering the pass-through of recent WESM-driven increases to lessen the immediate impact on consumers.
“Imposing sudden and substantial rate increases creates a serious financial shock for households and businesses. The ERC should examine mechanisms that can cushion consumers from abrupt adjustments while ensuring that legitimate generation costs are properly accounted for,” Amper said.
DCM is also calling on Davao Light to immediately undertake a Competitive Selection Process (CSP) to secure competitively priced, long-term bilateral power supply agreements with reliable generation facilities.
“We demand that Davao Light immediately conduct a Competitive Selection Process to secure competitively priced, long-term power supply agreements with reliable generation plants. This would help reduce dependence on volatile spot-market purchases and provide greater price stability for consumers,” Amper said.
The consumer group also wants Davao Light to publicly disclose its capacity and power procurement strategy for its expanded franchise, which includes the Island Garden City of Samal and portions of Davao del Norte and Davao de Oro.
According to Amper, the plan should clearly indicate how the utility intends to accommodate additional demand in the expanded service areas without compromising reliability or unnecessarily increasing costs for existing consumers.
“Existing long-term ratepayers must not suffer degraded service or be made to implicitly subsidize the integration of new coverage areas,” he said.
DCM had previously supported the expansion of Davao Light’s franchise, citing the utility’s commitment to improve electricity services while maintaining reliability and affordability in its existing coverage area.
Amper said the group’s earlier support has made it more determined to demand accountability from the utility.
“Because we actively backed this expansion, DCM holds a heightened duty of care to the public. It is precisely this direct involvement that fuels our concern today. Instead of seeing the promised benefits of reliable and competitively priced electricity, consumers are facing sharp increases in power rates alongside growing concerns over service quality and reliability,” he said.
Amper stressed that the expanded franchise also carries a responsibility to ensure that consumers receive reliable, secure, and reasonably priced electricity.
“Consumers deserve transparency, accountability, and concrete action,” he said.
