NGCP cuts May transmission rates by 8.80%

National Grid Corporation of the Philippines said overall transmission rates charged to end consumers for May 2026 electric bills fell by 8.80% after reductions in transmission wheeling rates and ancillary service charges.

NGCP said the overall average transmission rate for the April 2026 billing period dropped to PHP 1.5983 per kilowatt-hour from PHP 1.7526/kWh in March.

The grid operator said the decrease was driven by lower charges for both its core transmission service and ancillary services.

Transmission wheeling rates, or NGCP’s charge for delivering electricity through the transmission network, declined by 14.16% to PHP 0.6028/kWh in April from PHP 0.7022/kWh in the March 2026 billing period.

“For the May 2026 electric bill of the end consumers, NGCP charges only 60 centavos per kWh for the delivery of its services,” NGCP said.

Average ancillary service rates also decreased by 5.02% to PHP 0.8088/kWh from PHP 0.8516/kWh in March.

Ancillary services cover reserve and balancing services sourced from the Reserve Market and from providers with bilateral contracts with NGCP to stabilize the grid during power supply-demand imbalances.

NGCP said ancillary service charges still account for the bulk of transmission charges passed on to consumers.

“NGCP does not earn from AS rates, as these are remitted directly to generating companies, and it does not benefit from any movement in their prices,” said NGCP.

The company said ancillary service charges are pass-through costs paid to generating companies that provide reserve capacity and grid stabilization services.

NGCP operates and maintains the country’s power transmission system under a congressional franchise and also serves as system operator, balancing supply and demand to maintain grid reliability.

The Reserve Market began full commercial operations on Jan. 26, 2024, allowing certified ancillary service providers to participate in the scheduling and dispatch of regulation, contingency and dispatchable reserves in the Wholesale Electricity Spot Market.