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Thursday, August 21, 2025

Lower transmission rates expected in May–NGCP

National Grid Corp. of the Philippines (NGCP) on Wednesday said consumers can expect lower transmission rates this month, following a significant reduction in both transmission wheeling rates and ancillary services (AS) rates in the April billing period.

NGCP said overall equivalent average transmission rates for the April billing period dropped by 28.45 percent to P1.0904 per kWh, from P1.5240 per kWh in March.

The decrease was driven by reductions in both transmission wheeling rates and AS rates.

Transmission wheeling rates are what NGCP charges for its primary service of delivering power, while AS rates pertain to the pass-through costs for power supplied by AS providers to stabilize the grid during power supply-demand imbalance.

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’s transmission wheeling rates went down by 16.35 percent to P0.4605 per kWh in April from P0.5505 per kWh in March.

“For the May 2025 electric bill of the end consumers, NGCP charges only 46 centavos per kWh for the delivery of its services,” NGCP said, adding that AS still accounts for the bulk of transmission charges.

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