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News

May-June residential electricity rate down to P10.35/kWh

by Nova Mae Francas
written by Nova Mae Francas

DAVAO Light’s overall residential rate decreased by P0.18 per kilowatt-hour (kWh) for May, the power distribution utility announced on Monday.

This brings the new rate to P10.35 kWh, reflecting a decrease of P0.18/kWh from last month’s rate of P10.53/kWh. Davao Light said the adjusted rate applies to electricity bills received from May 12 to June 10.

“The lower rate is attributed to a reduction in transmission rate from the National Grid Corporation of the Philippines (NGCP),” it said in a press statement.

The power transmission service provider NGCP announced the reduction on May 13 was driven by lower transmission wheeling charges and reduced ancillary services rates.

NGCP’s transmission wheeling rate covers the cost of delivering electricity through the transmission network, while ancillary rates refer to support services tapped by NGCP from the reserve market to help stabilize the power grid.

Davao Light said the reduction of residential rate is also due to the Energy Regulatory Commission (ERC) order to temporarily suspend the P0.0371/kWh Green Energy Auction Allowance (GEA-All) collection for the May and June 2026 billing periods.

ERC announced that the move is to help ease the financial burden of consumers amid rising inflation from global conflict.

The GEA-All is a mechanism used to support payments to eligible renewable energy developers that participate in the auction.

Davao Light reminded customers that rates change monthly since market prices remain volatile.

The power distribution utility encourages customers to continue practicing energy efficiency to manage electricity costs and prevent bill shock.

Davao Light recommended checking the estimated daily or monthly energy usage for each appliance by determining the appliance wattage, the average number of hours the household uses, the number of days the household uses the appliance in a month, and checking the rates.

To calculate the Kilowatt-Hours (kWh), the formula is Wattage / 1000 x Hours Used x Days = Total kWh. To estimate the cost, the total kWh should be multiplied by the rate.

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Opinion

PARE on electric cooperatives seeking franchise renewal 

by Contributor
written by Contributor

PARTNERS for Affordable and Reliable Energy (PARE) is calling on Congress to exercise stricter oversight and deny franchise renewals to electric cooperatives that fail to meet basic technical and regulatory standards. 

The recent case of Isabela I Electric Cooperative, Inc. (ISELCO I) illustrates the urgency of this call. 

An Energy Regulatory Commission (ERC) report in late 2025 showed ISELCO I was compliant with only 6 of 46 Philippine Distribution Code (PDC) standards. The cooperative exceeded the feeder loss cap at 10.84 percent against the 10.25 percent ceiling, was only “partially compliant” with PDC requirements, and failed to submit its Philippine Grid Code (PGC) compliance report for 2024. 

These lapses, alongside gaps in net metering, customer choice, and metering tests, highlight how consumers ultimately bear the costs of inefficiency and poor reliability. 

This case is not about singling out ISELCO I, but about exposing systemic flaws in how franchise renewals are reviewed and granted. If this can happen to ISELCO I, then other cooperatives may be facing similar problems. With around 30 electric cooperatives seeking franchise renewals, the current evaluation system must be reviewed and overhauled to ensure accountability. 

The evaluation process must go beyond paperwork and technical submissions. It must take into account the sentiments and lived experiences of consumers, who are directly affected by service inefficiencies and reliability issues. Franchise renewals should not be granted unless cooperatives can demonstrate clear compliance, transparency, and a roadmap for improvement. 

Hindi dapat aprubahan ng Kongreso ang franchise renewal ng mga electric cooperative na hindi tumutupad sa itinakdang pamantayan. Kailangang baguhin ang sistema ng pagsusuri upang isentro sa kapakanan ng mga konsumer ang bawat desisyon. 

Nic Satur Jr 
chief advocate officer, PARE 
nsaturjr.pare@gmail.com 
09271448048

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Business

AboitizPower unit begins historic Davao-Samal power interconnection project with submarine cable laying

by Contributor
written by Contributor

SAMAL ISLAND — Aboitiz Power Corporation (AboitizPower), through its distribution utility Davao Light and Power Company (Davao Light), completed a historic first for the company via a submarine cable laying in the Pakiputan Strait, connecting the Island Garden City of Samal to Davao City. This is an initial step to the resort island’s long-awaited integration into the mainland’s power grid after years of service woes.

A cable-laying vessel, guided by support boats and a team of technical experts and divers, brought the submarine cable across one of the strait’s narrowest points between Davao City and Samal,  with the route intentionally mapped to minimize environmental impact along the cable’s path. The 1,015 meters of state-of-the-art submarine cable was produced in China, custom-built to meet the project’s specifications.

As the cable-laying vessel passes through the Pakiputan Strait, several floaters are used to temporarily allow the submarine cable to float and align along the planned route.

Succeeding phases will see divers securing the submarine cables underwater and the construction of cable terminal stations at both shore ends. The 69-kilovolt project is expected to be completed by mid-2026, bringing much-needed power network stability and supporting the growing load requirements in Samal.

“Davao Light is ready, poised, and equipped to serve the people, communities, and businesses of the Island Garden City of Samal,” said Davao Light President and COO Enriczar Tia. “Our immediate priorities will be customer service support, network expansion, and substation upgrades that will help build a robust electric distribution system.”

According to AboitizPower Anton Perdices, SVP & COO of the Distribution Business Group, Davao Light will strive to operate using best practices and world-class standards that will help encourage growth and development and improve quality of life. “By doing so, AboitizPower and Davao Light will be able to support local progress and national goals.”

For years, Samal has faced power distribution issues due to aging infrastructure and network maintenance concerns. The frequent outages on the island have strained households, disrupted businesses, and weakened Samal’s potential as a tourism hub. A former local executive said that the city incurred annual damages of about P120 to P150 million since the 2010s due to inconsistencies and unresolved power issues.

The Energy Regulatory Commission (ERC) granted the Provisional Authority for Davao Light’s Certificate of Public Convenience and Necessity (CPCN), which formally cleared the way for the submarine cable laying connecting Samal to the mainland grid. 

Davao del Norte Governor Edwin Jubahib welcomed the approval, describing it as a turning point for the province and a signal of more reliable power service ahead. “This may be one document but this spells a brighter future and a better life to the people of Davao del Norte,” the governor said in an official statement.

“With the expected stability in the power network, we look to attract investors and generate more jobs for our people here in Samal,” added Samal Mayor Lemuel Reyes. “We thank Davao Light and AboitizPower for kicking off this project; one that would improve the lives of the people in our island.”

Officers and engineers of Davao Light inspect the submarine cable dispatch site prior to the start of the activity.

According to the Philippine Statistics Authority, the Island Garden City of Samal has a population of 119,701 as of the 2024 census.

Davao Light is the third largest privately-owned distribution utility in the Philippines, serving the cities of Davao and Panabo, plus the municipalities of Carmen, Dujali, and Sto. Tomas. 

Republic Act No. 12144, which took effect last April 2025, expanded Davao Light’s franchise area to several areas in Davao del Norte and Davao de Oro, including Samal. Its legality was affirmed by the Supreme Court in January 2026.

A Writ of Possession was also issued by the Regional Trial Court – Panabo Branch 4, authorizing Davao Light to take over all electric distribution assets in Samal.

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Opinion

PARE calls out Nordeco for lack of transparency 

by Contributor
written by Contributor

THE PARTNERS For Affordable & Reliable Energy (PARE) is calling on the Northern Davao Electric Cooperative (Nordeco) to be transparent toward its member-consumer owners following the debt it incurred with the Interim Electricity Market Operator of the Philippines (IEMOP). 

Public records from the IEMOP show that Nordeco was suspended from the Wholesale Electricity Spot Market (WESM) effective September 25, 2025, pursuant to WESM Rules Clause 3.15.8, due to unpaid energy settlement obligations. Media reports and consumer advocates have cited figures from IEMOP indicating that Nordeco’s arrears have reached over ₱318 million and were among the largest recorded obligations in WESM as of the second half of 2025. 

Nordeco refuted these claims, saying these were “fake news” despite being published on IEMOP’s official website. 

Meanwhile, in a letter dated October 29, 2025, the IEMOP said Nordeco has not been disconnected and continues to source energy from WESM. 

If Nordeco insists that these reports are ‘fake news’ or misleading, then the cooperative must stop speaking in generalities and start presenting figures. Consumers deserve a detailed line-by-line explanation, how much is really owed, what has been paid, and what is the concrete settlement plan so that these liabilities are not quietly passed on to households and small businesses.” 

At the same time, PARE notes that Energy Regulatory Commission (ERC) and the National Electrification Administration (NEA), as the energy regulators, are accountable for inefficiencies of electric cooperatives that led to the suffering of consumers. 

Franchise war while consumers suffer 

The WESM controversy comes on top of long-standing complaints about brownouts and high power rates in Nordeco’s franchise areas. Business groups and local stakeholders have openly opposed any move to renew Nordeco’s franchise, citing poor service quality and the

economic damage caused by outages and high electricity costs. Supporters of Davao Light’s expansion under Republic Act No. 12144 argue that consumers would benefit from more reliable and lower-cost power under a different distribution utility. 

“While Nordeco and Davao Light trade legal briefs and press releases, people on the ground are losing livelihoods, suffering hours in darkness, and paying one of the highest rates in the region,” Satur said. “This is no longer just a technical or legal issue, it is a political and regulatory failure.” 

Regulators cannot stay neutral 

PARE underscored that the ERC and the NEA have clear mandates to protect consumers and enforce a least-cost, reliable power supply under the Electric Power Industry Reform Act of 2001 and related issuances. 

ERC and NEA cannot remain on the sidelines while consumers are used as collateral in a franchise war. Before any franchise renewal, extension, or new arrangement is even considered, regulators must publicly answer three non-negotiable questions.

PARE called on ERC and NEA to issue a clear, public statement on: 

1. WESM obligations and suspension – the verified amount of Nordeco’s WESM arrears, the status of payments, and the agreed pathway to full settlement, in coordination with IEMOP. 

2. Compliance with standards – Nordeco’s performance audit vis-à-vis technical, financial, and service benchmarks, based on audited data and consumer complaints, not competing narratives. 

3. Consumer safeguards and roadmap towards reliable power, concrete protections to ensure that any decision on Nordeco’s franchise or any transition arrangement will prioritize reliable, least-cost power and shield consumers from paying for mismanagement and unresolved debts.

Put consumers at the center 

PARE emphasized that the core issue is not which company’s logo appears on the bill, but whether families and businesses can depend on power that is both reliable and affordable. 

Regulators, energy players, and political leaders must be reminded: your mandate is to protect consumers, not franchises. If you are tired of this war for power, where people are the ones who lose, speak up. Ask your electric cooperative or distribution utility to explain their WESM exposure, their power supply contracts, and why your rates are so high, and demand that ERC and NEA take a firm, public stand before any franchise decision is made.

(Partners for Affordable and Reliable Energy (PARE), a non-government, non-partisan consumer advocacy group that promotes affordable, reliable, and transparent electricity for Filipino consumers.)

Nic Satur Jr
chief advocate officer
PARE
nsaturjr.pare@gmail.com
09271448048

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News

Nordeco urges consumers not to switch to Davao Light as ERC’s CPCN is still temporary

by Nova Mae Francas
written by Nova Mae Francas

THE DAVAO del Norte Electric Cooperative (Nordeco) urged its consumers against switching to Davao Light and Power Co. as the certificate of public convenience and necessity (CPCN) is still “provisional.”Nordeco announced Tuesday, Jan. 20, that it continues to be a legitimate electric distribution utility to Davao del Norte and Davao de Oro.“Busa, giawhag ang atong mga pinanggang miyembro-konsumante-tag-iya sa padayon sa pagsuporta sa atong Nordeco,” it said.“Dili magpadala sa mga haylo nga magpakonek sa Davao Light aron malikayan ang kasamok ug kahasol,” it stressed.Nordeco reiterated that the law mandating expansion of Davao Light’s franchise in their areas is not yet final.“Ang balaud sa pag-expand sa Davao Light ngadto sa Nordeco franchise area, dili pa final kay gipasaka pa sa Supreme Court ang pag-question sa maong bala-udnon,” Nordeco said. It stressed that the hearing for the application of CPCN is still ongoing. “Ug gani, sa milabayng hearing adtong Enero 13, 2026, Dili hingit ug ligdong ang tubag sa Davao Light sa dihang gipangayuan sila og pasalig nga dili motaas ang taripa sa kuryente ug wala nay brownout kung mosulod na sila,” it stressed.In an en banc commission meeting on December 12, the ERC granted provisional authority (PA) approval for Davao Light’s CPCN. The ERC authorized Davao Light to start connecting customers in Davao del Norte and Davao de Oro, as stated in Republic Act 12144.Davao Light also urged the consumers that the decision allows them to accept applications for connections.Despite this, Nordeco continues their fight over the contested area.On Dec. 22, 2025, APEC Partylist Rep. Sergio Dagooc and PHILRECA Rep. Presley de Jesus filed House Bill 7006, granting Nordeco a franchise to construct, install, establish, operate, own, manage and maintain distribution systems for the conveyance of electric power to the end users in Davao del Norte and De Oro.This includes municipalities of Compostela, Monkayo, New Bataan, Montevista, Maragusan, Nabunturan, Mawab, Laak, Maco, Mabini And Pantukan in the province of Davao De Oro And municipalities of Asuncion, New Corella, Kapalong, San Isidro, and Talaingod in the Province Of Davao Del Norte and the City Of Tagum.In June 2025, Nordeco filed before the Supreme Court a petition for certiorari and prohibition with prayer for writ of preliminary injunction and temporary restraining order to declare Republic Act 12144 as “unconstitutional.”RA 12144, which lapsed into law on April 6, officially expands Davao Light’s franchise area to include Davao del Norte and Davao de Oro.

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Business

Tagum business chamber welcomes Davao Light CPCN

by Nova Mae Francas
written by Nova Mae Francas

THE TAGUM City Chamber of Commerce welcomed the issuance of a provisional certificate of public conveyance and necessity (CPCN) by the Energy Regulatory Commission (ERC) to Davao Light and Power Co.

“This is one big step for customers of Tagum City and Davao del Norte who aspire for better service and lower electricity rates,” the statement said. 

The ERC has granted provisional approval for Davao Light to start connecting customers in Davao del Norte and Davao de Oro, as stated in Republic Act 12144.

TCCCI president Engr. Sean A. Gellangarin said with the PA, Davao Light can now connect customers and collect payments for its service, subject to final approval by the ERC.

“While we understand Northern Davao Electric Cooperative (Nordeco) is still putting up resistance and going to court to stop Davao Light from taking over and to stop customers from switching – the business sector is still hoping for the NordecoBoard of Directors to initiate a level-headed negotiation and peaceful transition from Nordecoto Davao Light,” he said. 

He stressed that it’s not only the business sector that’s praying for a smoother transition, but also the consumers. 

“We all deserve lower rates and better service to support business, improve lives, and build a better economy for Tagum City and Davao del Norte,” he added. 

In an en banc commission meeting on December 12, ERC granted Provisional Authority (PA) approval for Davao Light’s CPCN. 

“We welcome this decision of the ERC. For months, Davao Light has laid the foundation of our network in our expanded areas. With this decision, we can now accept applications for connections,” DLPC president and COO Enriczar Tia said.

Customers who would want to transfer to Davao Light may apply online through links to the application process on the Davao Light Facebook page, website, and other channels.

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Community

Davao Light gets green light to connect new customers

by Contributor
written by Contributor

The Energy Regulatory Commission (ERC) has granted provisional approval for Davao Light and Power Co. (DLPC) to start connecting customers in Davao del Norte and Davao de Oro, as stated in Republic Act 12144.

In an en banc commission meeting last Dec 12 2025, the energy regulator granted Provisional Authority (PA) approval for Davao Light’s Certificate of Public Convenience and Necessity (CPCN). This would mean Davao Light now has provisional approval to connect customers and collect payments for its service, subject to final approval by the commission.

“We welcome this decision of the ERC. For months, Davao Light has laid the foundation of our network in our expanded areas. With this decision, we can now accept applications for connections,” DLPC President and COO Enriczar Tia said.

Customers who want to transfer to Davao Light may apply online. Links to the application process can be found on the Davao Light Facebook page, website, and other channels.

Tia, however, said DLPC cannot take over the entire area covered by RA 12144 just yet with the continued refusal of NORDECO to sell its assets to the private utility. For now, DLPC has only been able to string a connection in Kapalong municipality due to its proximity to the original DLP area.

“We still hope to enter into negotiations for the assets of NORDECO so we can connect as many customers as we can,” he said. Customers in Kapalong may start receiving their Davao Light power before the year ends, and receive their Davao Light bills after their respective billing cycle, starting January next year.

He said DLPC has plans to put its own lines, poles, and substations, but it will take many years before it can start connecting customers in areas like Samal or Tagum.

Davao del Norte Governor Edwin Jubahib also expressed happiness over the CPCN issuance.

“This may be one document, but this spells a brighter future for the people of Davao del Norte. With the CPCN, Davao Light can now connect customers in Davao del Norte. This would mean lower rates and better service for all of us – something I have been fighting for our people since 2019. I will not stop until we have achieved this dream of ours. We hope for a smooth transition between NORDECO and Davao Light for the benefit of our consumers,” said Gov. Jubahib.

Tia said customers of the expanded areas will have lower electricity rates and will also experience the world-class service of DLP.

As of November 2025, Davao Light’s overall residential rate is P10.06 per kWh, while NORDECO residential customers paid P12.90 per kWh, or a difference of almost P3.00. For a residential customer with an average consumption of 120 kWh per month, the difference amounts to over P350 less for DLPC customers. This December, Davao Light’s overall residential rate reduced to Php9.7135/kWh. NORDECO has not yet released its December rates.

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Opinion

DCM sees movement in Davao Light expansion, but urges faster progress

by Contributor
written by Contributor

MAJOR developments now pave the way for long-awaited improvements in electricity service for Davao del Norte and Davao de Oro.

On Nov. 24, 2025, the Energy Regulatory Commission (ERC) conducted a hearing on the Certificate of Public Convenience and Necessity (CPCN). This permit ensures that only qualified companies can operate power services that genuinely serve the public interest.

Once granted, the CPCN will allow Davao Light to legally expand into new areas. Under Republic Act 12144, the power distributor will extend its franchise to Tagum City, Island Garden City of Samal, Asuncion, Kapalong, New Corella, Talaingod, and San Isidro in Davao del Norte, as well as the entire province of Davao de Oro.

For consumers, this means that households and businesses in the expanded franchise area will soon gain access to Davao Light’s services – reliable and affordable electricity, improved customer service, and stronger support for local growth.

We commend the local chief executives and business leaders who attended the hearing for amplifying the voice of consumers, whom the Northern Davao Electric Cooperative (Nordeco) has continued to dismiss and ignore.

At the same time, we express disappointment that the second hearing has been scheduled for January 13, 2026, instead of December this year. While less than two months away, this delay prolongs the hardship of consumers awaiting a change in power service providers. We understand the realities of government bureaucracy, but such postponements hinder true progress.

Meanwhile, we commend the Davao del Norte Sangguniang Panlalawigan Committee of the Whole for passing, on November 24, 2025, a resolution opposing NORDECO’s franchise renewal bid. The resolution will now move to the provincial board for deliberation.

The measure, filed last month by Board Member Al David T. Uy, cited mounting complaints from residents, particularly in the Island Garden City of Samal, over what they described as poor service from Nordeco.

We thank the seven board members who voted against Nordeco’s franchise renewal bid. Your decision reflects the voice of consumers in Davao del Norte and aligns with the call for change and progress in the province’s power service.

Lastly, we commend the Sangguniang Panlalawigan for passing two resolutions – 1181 and 1182 – that will further advance the efforts to support the power transition in Davao del Norte. 

Resolution 1181 calls for urgent action for a smooth, orderly, and uninterrupted transition of electrical services in Davao del Norte pursuant to Republic Act No. 12144.

Resolution 1182 expresses dissatisfaction with Nordeco’s electric distribution services due to their unreliability despite expensive charges. It requests the House of Representatives and the Senate to seriously take these sentiments into consideration in evaluating its application for franchise renewal.

Ultimately, these developments are about ensuring reliable, affordable electricity for the people of Davao del Norte and Davao de Oro, empowering communities to share in their provinces’ growth. #


Ryan Amper
Convenor
Davao Consumer Movement
0905-5634083

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Opinion

Increase in pass-on charges to drive power rates up

by Contributor
written by Contributor

THE DAVAO Consumer Movement (DCM) is urging regulatory agencies, particularly the Energy Regulatory Commission (ERC), to review pass-on charges to consumers, following recent announcements of rate increases that could significantly impact electricity bills.

Within a span of one month, DCM flagged three developments in the energy sector that may drive up costs for households and businesses:

  • The surge in Wholesale Electricity Spot Market (WESM) rates in October
  • The reinstatement of environmental charges by the ERC
  • Higher transmission rates announced for November

In October, the Independent Electricity Market Operator of the Philippines (IEMOP) reported a 49.4% spike in average WESM prices, reaching P4.54 per kilowatt-hour (kWh). Spot prices in Mindanao rose even more sharply – up 40% to P5.87 per kWh. These increases affect the generation charge reflected in consumers’ monthly bills. Major plant outages contributed to the price hike, compounded by an earthquake in the Visayas on September 30, 2025, which caused multiple tripping incidents across transmission lines and generation facilities. Between September 26 and October 25, the available power supply dropped by 4% to 19,889 megawatts (MW), while demand rose by 1.8%, peaking at 13,881 MW.

Adding to the pressure, the ERC resumed collecting the P0.0025/kWh Universal Charge–Environmental Charge (UC-EC) on November 7, five years after its suspension in May 2020. Distribution utilities and the National Grid Corporation of the Philippines (NGCP) will collect the fee and remit it to the Power Sector Assets and Liabilities Management Corp. (PSALM). ERC Chairman Francis Saturnino Juan said the reinstated UC-EC will fund the rehabilitation and management of watershed areas under the National Power Corporation (NPC).

The NGCP also announced a 7.91% increase in transmission rates, bringing the overall charge to P1.5105/kWh. This hike is mainly due to higher ancillary service (AS) charges, which rose 15.23% to P0.7542/kWh. The AS charges are fees paid to reserve standby power for grid stability. Transmission wheeling rates, which cover the cost of delivering electricity from generators to distribution systems, also increased by 0.57% to P0.5953/kWh.

On top of these adjustments, the ERC is considering expanding the Lifeline Subsidy Program to support more low-income households. To fund the expansion, it is proposing a Uniform National Lifeline Subsidy Rate of P0.01/kWh, to be charged to full-paying electricity customers. The collected amount would provide full discounts to qualified marginalized consumers. Public consultations on the proposal are still ongoing.

While each adjustment may seem minor on its own, their cumulative effect could mean a noticeable increase in monthly electricity bills. These charges are all passed on to consumers. For instance, Davao Light’s residential rate was P8.98/kWh in January 2025. By October, it had risen to P9.15/kWh, and as of November, it stands at P10.06/kWh. Though Davao Light still offers the lowest residential rate in the region, regular households are beginning to feel the strain.

DCM is calling on the Department of Energy and the ERC to reassess the components of electricity bills. As a starting point, we suggest reviewing the proposal to remove the 12% value-added tax (VAT) on electricity. We also urge power distributors in the Davao Region to improve supply management and prioritize cheaper energy sources.

With electricity consuming a significant portion of household budgets, DCM warns that without effective government intervention, both consumers and businesses will struggle to keep up with rising costs. #=============

For more details:

Ryan Amper
Convenor
Davao Consumer Movement
0905-5634083

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Community

Davao light rates for Aug-Sep at P9.0782/kWh

by Nova Mae Francas
written by Nova Mae Francas

DAVAO Light’s overall residential electricity rate for August to September billing is priced at P9.0782/kWh.

This is an increase by P0.3010 per kilowatt hour (kWh) from P8.7772/kWh last July-August billing, applied to bills received from Aug. 11 to Sept. 10.

The rate increase is attributed to higher power supply prices from the Wholesale Electricity Spot Market (WESM) and higher transmission charges from the National Grid Corporation of the Philippines (NGCP).

The prices of WESM, where Davao Light sources part of its power requirement, fluctuate month after month based on supply and demand across the grid. 

Meanwhile, transmission charges from the NGCP are up due to new Maximum Allowable Revenue (MAR) and Under Recoveries (UR) approved by the Energy Regulatory Commission.

The new MAR and UR resulted in an increase in the July rates, which is to be translated by the distribution utilities effective August billing.

Davao Light urged its customers to use energy efficiently to help manage electricity bills in light of the rate increase.

While the rates have increased, it is still lower compared to previous months, such as in May 2025, where the rates amounted to P9.1053/kWh, and P9. 5514/kWh in April. 

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