DAVAO CITY – A Davao City councilor said on Tuesday that the increase in water and electricity rates here is primarily driven by national regulatory decisions, leaving the city government with limited authority to stop the rate hike.

Speaking at the Pulong-Pulong sa Dabawenyos media forum at the Sangguniang Panlungsod, Councilor Louie John Bonguyan, chairman of the Committee on Energy and Water, said residents began the year facing higher utility costs.

Bonguyan said the Davao City Water District proposed another 30 percent water rate hike while the Davao Light and Power Co. implemented an about P2 per kilowatt hour increase in electricity rates in January.

The councilor said that the DCWD has raised water rates by 60 percent since 2022, with the increases approved by the Local Water Utilities Administration. The final tranche was implemented in 2024.

Late last year, Bonguyan said the DCWD again sought LWUA approval for an additional 30 percent increase, to be implemented in two tranches—15 percent in 2026 and another 15 percent in 2027.

He said the DCWD justified the proposal in a public hearing with concerned agencies by citing the need to develop new water sources, expand production wells, upgrade pipelines, and address high non-revenue water or system losses.

Bonguyan questioned the request. He said DCWD has not yet fully used the previously approved rate hike and has lowered some costs since the Apo Agua surface water project began, supplying parts of the city through gravity-fed systems.

"The water district has already shut down several production wells and shifted to paperless billing, which should mean savings," Bonguyan said, adding that these were raised during DCWD's public hearing attended by LWUA officials.

Bonguyan said he had initial discussions with DCWD. He added that the agency stated its reasons and that, ultimately, the LWUA holds the final decision, with DCWD justifying its request for a rate increase.

According to DCWD spokesperson JC Duhaylungsod, the agency acknowledged the general public's concern and prioritized water access for all residents, especially the most vulnerable.

Duhaylungsod explained that revenue from customer payments is reinvested to maintain service quality and ensure sustainability. He said the rates are allocated to support the water district's operations and development.

According to the DCWD, around 96 percent of its 270,000 connections receive 24/7 water with sufficient pressure. It noted that it is the only water provider in the Philippines with a climate-resilient supply.

The DCWD also highlighted that it has kept water losses low even after integrating bulk water supply, which demonstrates the reliability of its infrastructure and the effectiveness of its management strategies.

Duhaylungsod stressed the DCWD's need for continued investments to maintain current service levels, improve supply for the remaining four percent of our connections, and extend service to new areas.

"We must develop additional water sources and infrastructure, optimize operations, enhance customer care, safeguard water sources, and maintain strong financial health," Duhaylungsod said.

He added that the most practical way to support these development plans is through a carefully planned and regulated water rate adjustment that balances financial realities with social responsibility.

Duhaylungsod said the proposed 30 percent increase over two years is the minimum necessary to maintain operations. He added that delaying this adjustment could compromise service reliability and long-term sustainability.

Bonguyan said that the P2 per kWh increase in January was caused by higher generation costs from the Wholesale Electricity Spot Market, following a series of power plant maintenance shutdowns late last year.

He said the increase was not due to DLPC's distribution charge, which the city council can review, but to generation charges regulated under the Electric Power Industry Reform Act and overseen by agencies such as the Department of Energy.

Davao Light President and Chief Operating Officer Engr. Enriczar Tia said the P2 per kWh increase from Jan. 11 to Feb. 10 was not due to PSALM's planned supply cut but to WESM prices rising after several power plant outages.