Impact on minimum rates expected to be limited due to yellow warning
Mindanao Power Rates Remain Low Despite Recent Yellow Alert
In a statement made by Fermin Edillon, the head of Davao Light's Reputation Enhancement Department, during the Habi at Kape forum on August 13, 2025, at Ayala Malls Abreeza, it was announced that the recent yellow alert status in Mindanao will have minimal effect on power rates.
The yellow alert, declared by the National Grid Corporation of the Philippines (NGCP) on August 1, was caused by high electricity demand coupled with a limited supply margin due to multiple power plant outages. This alert was in effect from 6 p.m. to 8 p.m. on that day.
Despite the yellow alert, Mindanao's available generating capacity stood at 3,382 megawatts (MW) as of August 13. Of this total, 3,291 MW comes from existing dependable power plants, leaving 1,406 MW of available transmission capacity.
The yellow alert led to the shutdown of two power plants in Mindanao, affecting the power supply in Mindanao and Davao. However, the supply was still sufficient to meet demand, albeit with reserves thin enough to raise the risk of brownouts if additional power plants shut down.
The NGCP reported Mindanao’s available capacity at 2,827 MW against a peak demand of 2,667 MW during the alert period, reflecting a tight balance. The yellow alert status was lifted later that evening around 7:46 p.m.
Edillon also stated that the official power rate for August is not yet available, but it is expected to be lower than the July rate of ₱8.70 per kilowatt-hour. The August power rates will be released and posted on Davao Light's official Facebook page in the coming days.
It is worth noting that Mindanao's system peak demand is 2,487 MW, and its operating margin is 895 MW. The Visayas and Mindanao grids were placed under yellow alert on August 1 due to multiple power plant outages.
The abbreviation RGP, mentioned but not clearly defined in the provided paragraphs, remains unclear in this context.
In summary, while the recent yellow alert in Mindanao did impact the power supply, the effect on power rates is expected to be minimal. The official power rate for August is yet to be confirmed, but it is expected to be lower than July's rate of ₱8.70 per kilowatt-hour.
- Despite the yellow alert affecting power supply in Mindanao and Davao, the upcoming energy industry financial figures in Davao, Philippines, are expected to remain stable, given the minimal effect on power rates.
- The ongoing yellow alert in the Philippines, specifically in Mindanao, has not significantly affected the local industry's energy resources, as Mindanao's available generating capacity remains substantial.
