Residential customers of Davao Light and Power Company will benefit from reduced electricity rates this May, following a decrease in power charges driven by lower transmission costs and a temporary suspension of a renewable energy-related fee.
Rate Reduction Details
In a recent advisory, Davao Light announced that the residential electricity rate for May 2026 has dropped to P10.35 per kilowatt-hour (kWh), a decrease of P0.18/kWh from April's rate of P10.53/kWh. This updated rate will be applied to electricity bills covering the period from May 12 to June 10.
Factors Behind the Decrease
The company attributed the rate reduction primarily to lower transmission charges imposed by the National Grid Corporation of the Philippines. Additionally, Davao Light cited a directive from the Energy Regulatory Commission (ERC) that temporarily suspends the collection of the P0.0371/kWh Green Energy Auction Allowance (GEA-All) for the May and June 2026 billing cycles. The GEA-All is a pass-through charge collected from consumers to support the government's renewable energy initiatives under the Green Energy Auction Program, which aims to expand the country's renewable energy capacity.
Impact on Households
With this adjustment, households consuming around 200 kWh per month could save approximately P36 on their electricity bills compared to the previous month. In April 2026, Davao Light had implemented a residential rate of P10.53/kWh following higher transmission-related charges and the continued collection of the GEA-All before the ERC issued its suspension order.
Monthly Rate Adjustments
Electricity rates are adjusted monthly based on various factors, including generation costs, transmission charges, foreign exchange movements, and government-imposed fees passed on to consumers. Davao Light reminded consumers that while some billing components remain beyond the control of distribution utilities, households can still manage their electricity expenses through efficient energy consumption.
Energy-Saving Tips
The company encouraged customers to unplug unused appliances, maximize natural lighting and ventilation, and use energy-efficient devices to help reduce power consumption. Consumers can check the complete breakdown of monthly electricity rates and billing components through Davao Light and Power Company's official channels.
