DAVAO Light and Power Co. is urging the Power Sector Assets and Liabilities Management (PSALM) Corporation to retain the 2025 supply allocation for the electric distribution utility.
The 21st City Council on Tuesday, Jan. 20, passed a resolution supporting the call of Davao Light.
Proponent Councilor Louie John Bonguyan told the media that the resolution urged PSALM to refrain from their proposed supply reduction in their contract with Davao Light.
“Originally we are enjoying 180 MW from PSALM for several years. Their plan for 2026 is to cut it down into half; that’s 90 MW only for DLPC,” Bonguyan said.
Davao Light sources around 50% of its power supply from the Agus-Pulangi hydropower complex consisting of power plants owned by PSALM.
Should the reduction push through, Davao Light will be forced to look for another source.
DLPC president and COO Engr. Enriczar Tia told the media that the worst impact of the contract reduction will result in an estimated increase in the electricity rate of Davao Light by 50 centavos per kWh.
This amounts to an increase of P100.00 in the bill of residential customers with a 200-kWh consumption.
“If the reduction pushes through, the immediate action is for us to go to the spot market, to look for available supply,” he said.
Tia stressed there is nothing to worry about as the power in Mindanao is still adequate. However, like any other market, the price fluctuates.
“We will not be short in power, it’s just that the price will vary. As a responsible distribution utility, mangita si Davao Light ug pinakabarato,” he said.
Presently, Davao Light sources its power supply from NPC PSALM (50% hydropower); around 20-30% is from coal which is from Therma South, and the rest is mixed from the spot market.
Tia said the provider is positive PSALM will reconsider the contract reduction and retain their allocation for the benefit of the consumers.
PSALM wrote a letter to Davao Light in September 2025 informing of the reduction since the powerplant is old and derated which affects its capacity.
