Expect higher electricity bills for Aug. 2026 as NGCP transmission charge up 22.22%

Power consumers across Luzon, the Visayas, and Mindanao grids should expect higher transmission charge to be reflected in their August 2026 electricity bills.

In a statement, the National Grid Corporation of the Philippines (NGCP) said the transmission rate for the July 2026 billing period to be billed by distribution utilities and electric cooperatives this month increased by 22.22% to P1.7560 per kilowatt-hour (kWh), up from the prior month’s P1.4367 per kWh.

The NGCP attributed the increase in the overall transmission charge due to “sharp increase” in ancillary services (AS) rates.

In particular, AS rates — pass-through costs for power supplied by power generators who provide ancillary services during supply-demand imbalance — increased by 30.85%, from P0.7941 per kWh in June to P1.0391 per kWh in the July billing period.

The grid operator clarified that it does not earn from AS and does not benefit from any change in AS prices, as these are remitted directly to generation companies with bilateral contracts with NGCP, and to the Independent Electricity Market Operator of the Philippines (IEMOP) for AS sourced from the Reserve Market.

Meanwhile, NGCP said its transmission wheeling rate, or the fee for delivering power through the transmission grid, also rose from P0.5044 per kWh in June to P0.5436 per kWh in July.

“As system operator, NGCP’s responsibility is to ensure grid stability and reliability, especially during periods of supply-demand imbalance. NGCP does not earn from Ancillary Service charges. These payments are remitted to the service providers that supply the reserves needed to keep the power system secure and reliable,” NGCP said.

Transmission charge seen on Meralco bills is for the cost of delivery of electricity from power suppliers - usually located in other provinces or in remote areas outside of Meralco franchise area - to its distribution system, Meralco earlier said. This is paid to the NGCP, the transmission service provider.

READ: EXPLAINER: What does each charge in the Meralco bill mean for customers?

—KG, GMA News