NGCP Announces Higher Transmission Charges in February

MANILA — Consumers across the country will see a rise in electricity bills this month, as the National Grid Corporation of the Philippines (NGCP) announced an increase in transmission charges.

Rate Adjustments

At a press conference in San Juan City, NGCP Head of Revenue Management Julius Ryan Datinggaling detailed the new rate adjustments:

• Transmission wheeling rate: ₱0.5422 per kWh (up from ₱0.5315 per kWh)
• Ancillary service (AS) rate: ₱0.6640 per kWh (up 12% from ₱0.5928 per kWh)

The increase in AS rates includes the first tranche of 70% deferred payments to the Reserve Market from March 2024, amounting to ₱3.05 billion.

Why Are Ancillary Services (AS) Important?

• AS charges cover grid stability and reliability to prevent power interruptions.
• These costs are passed through to consumers and remitted to power generators that provide these services.

With these adjustments, the overall NGCP transmission charge has increased from ₱1.2583 per kWh to ₱1.3504 per kWh.

Impact on Consumers

While NGCP only retains ₱0.54 per kWh for its services, the higher AS charges mean consumers will bear additional costs on their electricity bills.

The power sector continues to face challenges, and these increases come amid ongoing discussions on energy security and affordability.