The National Grid Corporation of the Philippines warns power consumers to expect a power rate hike this July 2025 due to an increase in the rates of ancillary services.
NGCP said that while both the NGCP’s transmission wheeling rates and the AS increased, the bulk of the adjustment comes from a surge in AS costs.
On average, transmission rates for the June 2025 billing period increased by 5.49% to P1.2113/kWh, from May's P1.1482/kWh.
NGCP said the increase was driven by a 9.32% increase in ancillary service rates in the June 2025 billing period from P0.5655/kWh in May, to PhP0.6182/kWh.
NGCP explained that support functions are essential for maintaining the reliability, stability, and overall operational efficiency of the grid. These services are necessary to manage the dynamic nature of electricity generation, consumption, and transmission.
The agency said AS charges are remitted directly to generating companies with bilateral contracts with NGCP, and to the Independent Electricity Market Operator of the Philippines (IEMOP) for the AS sourced from the Reserve Market.
NGCP clarified that it does not earn from AS and does not benefit from the movement in prices.
Meanwhile, NGCP's transmission wheeling rates slightly increased by 0.39%, from PhP0.4593/kWh in the May 2025 billing period to PhP0.4611/kWh in the June 2025 billing period.
Transmission wheeling rates are what NGCP charges for its primary service of delivering power.
“For the July 2025 electric bill of the end consumers, NGCP charges only PhP0.46/kWh for the delivery of its services,” NGCP explained.
#WeTakeAStand #OpinYon #OpinYonNews