Philippine Power Transmission Charges Rise by 5.49% in July 2025, Largely Due to Ancillary Services Cost Hike

Power transmission charges in the Philippines have increased by 5.49% for July 2025, the National Grid Corporation of the Philippines (NGCP) announced, citing higher Ancillary Services (AS) costs as the main contributor to the surge.

According to NGCP, AS rates for the June 2025 billing period rose by 9.32%, moving from PHP 0.5655/kWh in May to PHP 0.6182/kWh. These charges are passed through directly to consumers and are paid to AS providers and the Independent Electricity Market Operator of the Philippines (IEMOP). NGCP emphasized that it does not retain any earnings from these fees.

“NGCP does not earn from AS and does not benefit from the movement in prices,” the corporation clarified, underscoring its role as a conduit for these pass-through costs.

As a result of the AS hike, the overall average transmission rate rose to PHP 1.2113/kWh in June, up from PHP 1.1482/kWh in the previous month. The latest AS charge for the Visayas region also includes the final installment of a deferred charge from March 2024, which had been postponed by the Energy Regulatory Commission (ERC).

Meanwhile, NGCP’s own transmission wheeling rate—the fee it collects for the physical delivery of electricity—increased slightly by just 0.39%, from PHP 0.4593/kWh in May to PHP 0.4611/kWh in June.

“For the July 2025 electric bill of the end consumers, NGCP charges only PHP 0.46/kWh for the delivery of its services,” the company stated, reiterating that AS remains the primary driver of the overall rise in transmission-related costs.

The adjustments are expected to reflect in consumers’ electricity bills, amid ongoing challenges related to grid stability, supply-demand balancing, and energy affordability across the country.