NGCP: Expect increase in transmission charges

CEBU, Philippines — Consumers can expect an increase in transmission charges in their March 2025 electric bills due to a rise in Ancillary Services (AS) rates, according to the National Grid Corporation of the Philippines (NGCP).

While transmission wheeling rates—the charges NGCP imposes for delivering power—declined by 3.14% from P0.5422/kWh in January 2025 to P0.5252/kWh in February 2025, AS rates saw an uptick of 5.05% during the same period. The AS rate increased from P0.6640/kWh in January to P0.6975/kWh in February.

NGCP attributed the rise in AS costs to the second tranche of the settlement of the remaining 70% AS cost from the reserve market for the March 2024 billing period. The Energy Regulatory Commission had previously deferred the recovery of these costs.

Ancillary Service charges cover AS sourced from the reserve market as well as those obtained through bilateral contracts with NGCP.

"For the March 2025 billing of the end-consumers, NGCP charges only 52 centavos per kWh for the delivery of its services. The bulk of transmission charges is for AS, which is remitted directly to AS providers," NGCP said in a statement.

The grid operator further clarified that it does not profit from AS charges and was not financially impacted by the increase in prices.

"The AS cost is a pass-through cost, and generating companies benefitted from this increase. AS are support services used to balance and stabilize the grid during power supply-demand imbalance," NGCP added. –/FPL (FREEMAN)