NGCP’s transmission rates rise on ERC approval

The Energy Regulatory Commission’s approval of the National Grid Corporation of the Philippines’ maximum allowable revenue and under-recoveries from 2016 to 2022, along with lower energy consumption from June to July 2025, resulted in higher NGCP transmission rates for the July 2025 billing period, which distribution utilities will pass on to consumers starting August 2025.

From PHP0.4611 per kilowatt-hour in June 2025, transmission rates rose to PHP0.5923 per kWh, an increase of PHP0.1312 per kWh.

Ancillary services rates fell from PHP0.6182 per kWh in June to PHP0.5872 per kWh in July, down by PHP0.0310 per kWh.

The overall average transmission rate for July 2025 climbed to PHP1.3233 per kWh, up 9.25% from June’s PHP1.2113 per kWh.

The ERC earlier approved a fixed under-recovery rate of PHP0.0384 per kWh to be implemented for 84 months, or until the UR amount of PHP28 billion is fully collected.

The ERC also allowed NGCP to recover a MAR increase of PHP6.62 billion, raising the previously approved MAR from PHP51.47 billion to PHP58.10 billion, which translates to an additional PHP0.0629 per kWh.

The approval forms part of NGCP’s fourth regulatory period reset, covering 2016–2022.

The third reset, covering 2010–2015, took place more than a decade ago.

The approved increase will help fund NGCP’s efforts to strengthen the power grid.