NGCP Cuts Transmission Fees, Ancillary Charges Rise in June

Consumers will see a mixed adjustment in their June 2025 electric bills as transmission charges slightly drop while ancillary service (AS) rates climb, according to the National Grid Corporation of the Philippines.

Transmission wheeling rates, or the fees collected by NGCP for delivering electricity through the high-voltage grid, went down by 0.27 percent in the May billing cycle, which will reflect in June bills.

From PHP 0.4605 per kilowatt-hour (kWh) in April, the rate dipped to PHP 0.4593 per kWh in May, a marginal reduction of PHP 0.0012 per kWh.

However, Ancillary Services rates rose significantly by 9.29 percent, from PHP 0.5175 per kWh in April to PHP 0.5655 per kWh in May, or an increase of PHP 0.0480 per kWh.

NGCP explained that it does not profit from the AS rate increase, stating, “As a pass-through cost, AS rates are only collected by NGCP and remitted directly to generation companies.”

Ancillary Services refer to the support mechanisms used to maintain grid stability during power supply fluctuations, which include frequency regulation, spinning reserves, and voltage control.

These services are procured either through the Ancillary Services reserve market or from providers with direct contracts with NGCP.

Despite the dip in wheeling fees, the combined effect of higher AS charges pushed the overall average transmission cost to PHP 1.1482 per kWh in May, up by 4.60 percent compared to April’s PHP 1.0978 per kWh.

This composite rate is the total amount that end consumers will see under the transmission charges portion of their electric bill this June.

The monthly changes in these rates are part of NGCP’s role under the Energy Regulatory Commission’s (ERC) pricing structure, which allows for periodic adjustments based on market movements and service contracts.

Transmission and AS charges typically represent a smaller component of total power bills, but any increases can still impact household and industrial electricity expenses, especially during peak summer demand.

NGCP operates the country’s electricity grid and is responsible for ensuring the reliable and secure transmission of power from generation companies to distribution utilities nationwide.

It has faced public scrutiny in recent months due to power interruptions in Luzon, prompting calls for stricter oversight of grid operations and timely procurement of reserve capacity.