THE National Grid Corporation of the Philippines (NGCP) announced that consumers can expect lower transmission charges on their May 2025 electric bills following a significant reduction in both transmission wheeling rates and Ancillary Services (AS) rates for the April 2025 billing period.
According to NGCP, the overall average transmission rate for the April 2025 billing period dropped by 28.45%, settling at P1.0904 per kilowatt-hour (kWh) from P1.5240/kWh in March 2025.
The decline was driven by decreases in two key components: transmission wheeling rates and Ancillary Services (AS) rates.
Transmission wheeling rates, which NGCP charges for delivering power across the grid, fell by 16.35%, from P0.5505/kWh in March to P0.4605/kWh in April.
Meanwhile, AS rates, which cover the pass-through costs for services that stabilize the grid amid supply-demand fluctuations, decreased by 36.07%, from P0.8094/kWh to P0.5175/kWh.
NGCP clarified that for the May 2025 billing cycle, the transmission charge for consumers will be only 46 centavos per kWh, emphasizing that the bulk of transmission costs still come from Ancillary Services.
The reduction in AS rates was partly attributed to the settlement of the fourth tranche of the remaining 70% of AS from the Reserve Market, which was deferred by the Energy Regulatory Commission (ERC) from the March 2024 billing period.
The AS charges encompass costs for services sourced from the Reserve Market and bilateral contracts with AS providers; NGCP does not earn from or benefit directly from movements in AS prices.
Consumers are expected to benefit from these rate reductions as they reflect a more efficient and stabilized grid operation, leading to lower electricity transmission costs in the upcoming billing cycle.
