Ancillary services push July 2025 power rates higher

Power consumers will see higher transmission charges in July 2025, with the increase largely driven by ancillary services rates, the National Grid Corporation of the Philippines announced.

For the June 2025 billing period, both ancillary services and NGCP’s transmission wheeling rates rose, but the bulk of the adjustment came from higher AS costs.

The overall equivalent average transmission rate increased by 5.49 percent to PHP1.2113 per kilowatt-hour, up from PHP1.1482 per kWh in May.

Ancillary service rates jumped by 9.32 percent in June, rising from PHP0.5655 per kWh in May to PHP0.6182 per kWh.

AS charges represent pass-through costs for power supplied by AS providers to stabilize the grid during supply-demand imbalances.

These charges are paid directly to generating companies with bilateral agreements with NGCP or through the Independent Electricity Market Operator of the Philippines for Reserve Market-sourced AS.

The June 2025 AS cost in Visayas includes the sixth and final tranche of the deferred settlement from the March 2024 billing period, covering 70 percent of AS from the Reserve Market, as approved by the Energy Regulatory Commission.

NGCP clarified that it does not earn from ancillary services and does not benefit from AS price fluctuations.

Transmission wheeling charges—fees for NGCP’s delivery of power—increased slightly by 0.39 percent, from PHP0.4593 per kWh in May to PHP0.4611 per kWh in June.

“For the July 2025 electric bill of the end consumers, NGCP charges only PHP0.46 per kWh for the delivery of its services,” NGCP stated, emphasizing that ancillary services remain the largest component of transmission costs.