The Davao Consumer Movement is urging the Department of Energy (DOE) and the Mindanao Development Authority (MinDA) to intensify efforts to attract more power generation investments in Mindanao. The appeal comes amid rising electricity rates across parts of the Davao Region, with the group arguing that a larger and more diversified supply base is essential to protect consumers from volatile prices in the Wholesale Electricity Spot Market (WESM).
Rate Increases and WESM Exposure
Several electric utilities and distribution firms in the region have announced rate increases in recent months, largely attributed to higher generation costs and elevated WESM prices. In a statement on July 6, the Davao Consumer Movement said these adjustments underscore the need to strengthen Mindanao's generation capacity to reduce exposure to spot market fluctuations.
“The latest adjustments in electricity rates highlight a broader challenge facing the region's power sector. As supply tightens, many power distributors have become more exposed to fluctuations in prices at the Wholesale Electricity Spot Market (WESM), resulting in higher generation charges that are ultimately passed on to consumers,” the group said.
Varying Reliance on WESM
Data from distribution utilities in the Davao Region show varying levels of reliance on WESM. Based on May 2026 figures, the Northern Davao Electric Cooperative (Nordeco) sourced 73.63 percent of its electricity from the spot market. Davao Light and Power Co. reported approximately 40 percent from WESM as of June 2026, while the Davao Oriental Electric Cooperative (Doreco) obtained 12.87 percent in May. The Davao del Sur Electric Cooperative (Dasureco) relied on WESM for only 0.53 percent during the same period.
The consumer group noted that these figures demonstrate how a utility's power supply portfolio composition can significantly affect generation charges on consumers' monthly bills. Generation charges are the largest component of residential electricity bills and are directly influenced by power purchase costs.
Balanced Portfolio Recommended
Energy experts have long noted that WESM ensures electricity availability by allowing utilities to purchase additional power when needed. However, reliance on the spot market is intended to complement, not replace, long-term power supply agreements that offer more stable pricing. The Davao Consumer Movement emphasized that a balanced mix of contracted power and strategic WESM participation can help cushion consumers from abrupt price increases while ensuring sufficient supply during peak demand.
“The data also underscores the value of maintaining a balanced power supply portfolio. Long-term bilateral power supply agreements, complemented by prudent participation in WESM, can help cushion consumers from sudden spikes in spot market prices while ensuring sufficient electricity supply,” the group said.
Call for New Investments
The organization called on the DOE and MinDA to promote an investment climate that encourages construction of new power generation facilities, including conventional and renewable energy projects, to meet Mindanao's steadily growing electricity demand. The DOE has projected sustained growth in electricity consumption in Mindanao as economic activity, industrial expansion, and urban development continue. The national government has pushed for investments in renewable energy, battery storage, and new generating facilities to improve grid reliability.
MinDA has identified energy security as critical to Mindanao's long-term economic development, stressing that reliable and competitively priced electricity is essential for attracting investments and supporting industries. The Davao Consumer Movement said expanding generation capacity and diversifying power sources would lessen excessive dependence on WESM, helping stabilize electricity prices for households and businesses.
“Mindanao's growing economy requires a power sector that is both reliable and affordable. Encouraging new investments in power generation today is a long-term consumer protection measure that can help provide more stable electricity prices for households and businesses in the years ahead,” the group said.
