NGCP: Transmission Charges Increase in March Due to Higher Ancillary Service Costs

The National Grid Corporation of the Philippines (NGCP) announced a hike in transmission charges for March, citing an increase in ancillary service (AS) rates, which offset a slight decrease in wheeling charges.

Breakdown of Transmission Charge Adjustments

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

• Wheeling charge (cost of power delivery):
  ⬇️ Reduced to ₱0.5252 per kWh (from ₱0.5422 per kWh)
• Ancillary service (AS) charge (cost for grid stability):
  ⬆️ Increased to ₱0.6975 per kWh (from ₱0.6640 per kWh)

This increase includes the second tranche of the settlement for 70% of the AS cost from the March 2024 Reserve Market.

With the higher AS charge outweighing the decrease in wheeling costs, the total transmission charge for March rose to ₱1.3668 per kWh, up from ₱1.3504 per kWh in February.

NGCP Clarifies It Does Not Profit from AS Charges

Datinggaling emphasized that NGCP does not earn from the AS charge, as this cost is passed directly to AS providers, which supply backup power to stabilize the grid in case of supply-demand imbalances.

“For the March 2025 billing of end-consumers, NGCP charges only 52 centavos per kWh for the delivery of its services. The bulk of transmission charges is for AS, which is remitted directly to AS providers,” he explained.

What Are Ancillary Services (AS)?

AS refers to reserve power that can be dispatched to maintain grid stability when unexpected power generation or transmission issues occur. These services are sourced from:
✅ The Reserve Market
✅ Bilateral contracts with AS providers

NGCP has reiterated that AS costs fluctuate based on market conditions and contractual agreements, which affect consumer electricity bills.