Consumer Group Calls for Transparency Amid Davao Light’s Expansion and Rate Hike

A newly formed consumer advocacy group in Davao City is calling on Davao Light and Power Company (Davao Light) to uphold transparency as the utility begins its acquisition of the Northern Davao Electric Cooperative’s (Nordeco) service areas.

The appeal emerges following an unprecedented increase of P1.5625 per kilowatt-hour (kWh) in monthly electricity bills — a sharp rise well beyond the usual centavo adjustments familiar to consumers.

This surge marks the second-largest rate increase since May 2024, which recorded a P1.6254 per kWh hike attributed to El Niño effects and fluctuations in prices from the Philippine Wholesale Electricity Spot Market (WESM).

In a statement earlier this week, the Mindanao Alliance for Progress (MAP) emphasized that Davao residents deserve full disclosure and reassurances that the substantial funds required to rehabilitate Nordeco’s aging and unreliable power infrastructure will not be unfairly charged to existing Davao City customers.

"We recognize that Davao Light’s expansion into Davao del Norte and Davao de Oro aims to provide lower rates and improved service in those provinces," said MAP coordinator Mayet Valdez. "However, it is imperative that such investments are not financed by the current consumers of Davao Light."

Valdez further stressed MAP’s commitment to protecting consumers’ interests, advocating for transparency, and ensuring essential services like electricity and infrastructure are delivered without exploitation.

Rate Hike Impact on Consumers

The P1.5625 per kWh increase translates to an additional P312.50 monthly cost for an average household consuming 200 kWh. The steeper-than-usual increase caught many in the city off guard.

Davao Light disclosed that its overall residential rate jumped from P9.0782/kWh in August to P10.6407/kWh between September 11 and October 10, 2025. Historically, fluctuations in monthly electricity bills have been minimal and measured in centavos.

The utility attributed the hike to increased generation costs in the WESM, caused by power plant outages that constrained supply. However, residents suspect that expenses related to Davao Light’s franchise expansion may already be reflected in their bills.

Consumer Concerns Over Cost Allocation

Residents interviewed across Davao City shared concerns about the rate increase and its implications.

A teacher in Bajada remarked, "I understand occasional increases due to fuel costs or supply issues, but these were usually just centavos. Now the increase is in pesos. I worry that Davao City consumers will end up shouldering the expenses of Nordeco."

A fish vendor in Bankerohan expressed difficulty in managing household finances with the sudden hike, saying, "I don’t know why the increase is so high. If costs from Nordeco are included in our bills, we won’t afford it. We don’t even use that service line, yet we have to pay for it."

Meanwhile, a jeepney driver from El Rio questioned the fairness of Davao City residents subsidizing infrastructure repairs outside the city. "Our service here is fairly stable. If we have to pay for Nordeco’s rehabilitation, it feels unfair since we’re not benefiting."

These voices reflect MAP’s demand for Davao Light to demonstrate clearly that costs from Nordeco’s system rehabilitation will not be transferred to existing customers in Davao City.

Company Response and Ongoing Uncertainties

At a recent press briefing on September 17, Fermin Edillon, Davao Light’s Reputation Head, affirmed that Mindanao’s power supply remains stable, pointing out the absence of power emergency alerts in September. He clarified that the recent rate increase resulted from market conditions and power plant outages rather than the utility’s territorial expansion.

Edillon also noted that electricity demand typically rises in October and November due to peak industrial activity, necessitating careful supply management. He assured that Davao Light is dedicated to maintaining service reliability amid its expansion efforts.

Despite this, Davao Light has yet to directly address MAP’s concerns regarding cost pass-through.

Transition Challenges and Consumer Confusion

Davao Light has commenced its expansion through initiatives such as breaking ground for its first digital substation in Tagum City last July and installing distribution poles in Kapalong, Davao del Norte.

However, Nordeco insists it remains the legitimate operator until the Supreme Court resolves its challenge to Republic Act 12144, which authorizes Davao Light’s takeover. The cooperative claims its operations continue normally and has not formally engaged with Davao Light on transition arrangements.

This legal and operational impasse has generated uncertainty among consumers, particularly in areas under Nordeco’s jurisdiction where service remains inconsistent and bills high. Meanwhile, Davao City residents within Davao Light’s coverage express anxiety over potentially subsidizing the costly rehabilitation of an external power network.

As Davao Light advances its regional presence, transparency and clear communication remain critical to addressing consumer concerns and fostering trust.