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Manila Bulletin devider Business devider Lower transmission, ancillary service rates reflected in May electricity bills

Lower transmission, ancillary service rates reflected in May electricity bills

Published May 14, 2025 01:41 pm

At A Glance

  • In a briefing on Wednesday, May 14, NGCP's business and regulatory development head Julius Ryan Datingaling explained that the overall average transmission rates recorded last April saw a significant decline of 28.45 percent, from ₱1.524 per kilowatt-hour (kWh) to ₱1.0904/kWh.

Consumers will experience lower electricity bills in May, brought by lower transmission and ancillary service (AS) rates, according to National Grid Corporation of the Philippines (NGCP).

In a briefing on Wednesday, May 14, NGCP’s business and regulatory development head Julius Ryan Datingaling explained that overall average transmission rates recorded last April saw a significant decline of 28.45 percent, from ₱1.524 per kilowatt-hour (kWh) to ₱1.0904/kWh.

NGCP charges transmission wheeling rates, which pay for power delivery services, while AS rates are pass-through costs for power supplied by AS providers to stabilize the grid during power supply-demand imbalances.

In April, NGCP’s transmission wheeling rates were down by 16.35 percent to ₱0.4605/kWh, while average AS charges lowered by 36.07 percent to ₱0.5175/kWh.

These AS charges are then remitted to generating companies (GenCos) and to Independent Electricity Market Operator of the Philippines (IEMOP) for AS sourced from the reserve market.

NGCP also emphasized that it only charges ₱0.46/kWh for the delivery of its services this month, as reflected in May 2025 electricity bills.

On rate reset

With the recently concluded review of NGCP’s fourth regulatory period (4RP) reset last April, spokesperson Cynthia Alabanza said that they have yet to get the final determination from the Energy Regulatory Commission (ERC).

“The [4RP] hasn’t officially received the final determination. That covers the period 2016 to 2022. So the next regulatory period, the 5RP covering 2023 to 2027, that hasn’t come out yet,” she told reporters.

“For the sixth [RP] starting 2028, of course, our intention is to file a lot of papers on time so that the performance-based regulation of forward-looking can be implemented again,” she added. 

Furthermore, Alabanza is hopeful that their 6RP will be regularized on time.

Last March, the ERC approved NGCP’s maximum allowable revenue (MAR) of ₱335.78 billion for the period.

Related Tags

National Grid Corporation of the Philippines (NGCP) Energy Regulatory Commission (ERC)
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