Home NewsMinDA backs Davao City Council’s call to address high power rates, cites ongoing inter-agency talks

MinDA backs Davao City Council’s call to address high power rates, cites ongoing inter-agency talks

by Nova Mae Francas

THE MINDANAO Development Authority (MinDA) said it has been working with national agencies, regulators, and power industry stakeholders to find ways to bring down power rates in the region.

Secretary Leo Tereso A. Magno, in a statement dated August 5, 2026, expressed support for concerns raised by the Davao City Council over rising electricity costs.

Magno acknowledged the council’s call for closer coordination among government agencies, local governments, regulators, and utilities.

Magno said MinDA has long pushed for cost-effective electricity and long-term energy security in Mindanao, advocating for more power generation capacity, stronger transmission infrastructure, faster renewable energy investments, and better inter-agency coordination.

“While Mindanao today enjoys an era of supply excess, electricity prices are influenced by many factors beyond available capacity alone,” he said. 

He cited the Wholesale Electricity Spot Market (WESM), fuel prices, generation mix, scheduled and forced outages of power plants, transmission constraints, and market dispatch all affect the generation charge reflected in consumers’ monthly bills. 

“This is precisely why MinDA has consistently emphasized that energy security and electricity affordability must be pursued together,” he stressed.

As chair of the Mindanao Power Monitoring Committee under Executive Order No. 81, series of 2012, MinDA, with the Department of Energy as co-chair, recently convened an inter-agency meeting with the Energy Regulatory Commission, National Electrification Administration, National Grid Corporation of the Philippines, National Power Corporation, National Transmission Corporation, Power Sector Assets and Liabilities Management Corporation, and the Association of Mindanao Rural Electric Cooperatives to discuss the region’s power situation and identify measures to mitigate high electricity costs.

Magno said MinDA also recognizes the need for distribution utilities to pursue additional long-term Power Supply Agreements, which are beneficial to consumers.

“Stable, competitively priced baseload supply, combined with the accelerated integration of renewable energy and battery energy storage systems, will strengthen price stability and reduce excessive exposure to WESM volatility,” he said.

The MinDA chief said the agency continues to push strategic reforms, including the rehabilitation of the Agus-Pulangi Hydropower Complex, support for the timely completion of committed power projects, and efforts to strengthen transmission infrastructure to ease congestion.

The agency has facilitated investments in the Mindanao Green Energy Auction Program and the promotion of bioenergy, waste-to-energy systems, battery energy storage systems, and distributed renewable energy resources.

Magno said addressing high power costs “is bigger than any single institution” and requires a whole-of-government and whole-of-industry approach grounded in sound policy, responsible investment, and evidence-based decision-making.

He said MinDA continues to facilitate initiatives that ensure sufficient power supply while making electricity more cost-effective and reliable to sustain Mindanao’s economic growth. 

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