Higher AS Charges Drive April Power Rate Hike

Higher ancillary service charges led to an increase in transmission charges in consumers’ April 2025 electricity bills, according to the National Grid Corporation of the Philippines (NGCP).

Ancillary service charges for the March 2025 billing period rose 16.05% to PHP0.8094 per kilowatt-hour, up from PHP0.6975 in February.

The cost includes the third tranche of the settlement for the remaining 70% of the March 2024 reserve market charges, which the Energy Regulatory Commission had deferred.

Ancillary service charges cover the cost of services sourced from the reserve market and providers with bilateral contracts with NGCP.

As a pass-through cost, only generation companies benefit from the higher AS rates.

Ancillary services are support functions provided by power generators to balance and stabilize the grid when supply and demand are misaligned.

“For the April 2025 bills of end consumers, NGCP charges only 55 centavos per kWh for the delivery of its services,” the company said.

“The bulk of transmission charges is for AS, which is remitted directly to AS providers,” it added.

Transmission wheeling rates, or what NGCP charges to deliver power, rose 4.81% to PHP0.5505 per kWh in March from PHP0.5252 in February.

Overall transmission charges for the March 2025 billing period reached PHP1.5240 per kWh, up 11.51% from PHP1.3668 in February.