NGCP slashes transmission rate by 43 centavos in May 2025

Power consumers across Luzon, the Visayas, and Mindanao grids should expect lower electricity bills this month as the National Grid Corporation of the Philippines (NGCP) announced a double-digit reduction in its transmission charges.

At a press conference in San Juan City on Wednesday, NGCP head of Revenue Management Julius Ryan Datinggaling said that its overall transmission rate has gone down by 43.36 centavos or 28.45% to P1.0904 per kilowatt (kWh) from P1.5240 per kWh month-on-month.

The decrease was driven by the reductions in both transmission wheeling rate and ancillary services (AS) rate, citing improved grid situation on the back of lower demand due to lesser hot weather conditions.

In particular, the NGCP rolled back its wheeling rate, or what it charges for its primary service of delivering power across distribution utilities and electric cooperatives, by 16.35% to P0.4605 per kWh from P0.5505 per kWh.

Meanwhile, the AS rate was slashed by 36.07% to P0.5175 per kWh from P0.809 per kWh.

AS rate pertains to the pass-through costs for power supplied by AS providers, with bilateral contracts with NGCP, and from the reserve market to stabilize the grid during power supply-demand imbalances.

AS serves as an available generation capacity for dispatch for contingency in case transmission or power generation problems occur.

It forms part of the total electricity bill as AS charge, which covers the expenses for grid stability and reliability, and is directly remitted to generating companies by the NGCP.

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

The grid operator has been explaining that the AS charge is a pass-through cost, and it does not earn or benefit from the movement of its prices.

Datinggaling explained that the overall transmission it will be charging will be uniform across distribution utilities and electric cooperatives across the three main power grids.

Consequently, the Manila Electric Company is rolling back its household rate by 75 centavos per kWh due to lower generation and transmission charges. —AOL, GMA Integrated News