NGCP’s Transmission Rates up due to New MAR and Under-Recovery

The Energy Regulatory Commission’s (ERC) approval of NGCP’s Maximum Allowable Revenue (MAR) and Under-Recoveries (UR) from 2016 to 2022, along with the decrease on the energy consumption from June to July 2025 Billing Period, resulted in an increase in NGCP’s Transmission Rates in the July 2025 Billing Period which will be translated by the Distribution Utilities in the electric bills of their end consumers effective August 2025.

From ₱0.4611/kWh in June 2025 Billing Period, Transmission Rates rose to ₱0.5923/kWh or an increase of ₱0.1312/kWh.

Ancillary Services Rates, on the other hand, went down from ₱0.6182/kWh in June to ₱0.5872/kWh in July, a decrease of ₱0.0310/kWh.

Overall average Transmission Rates for the July 2025 Billing Period have increased to ₱1.3233/kWh, up by 9.25% from June’s ₱1.2113/kWh.

The ERC earlier approved a UR fixed rate of ₱0.0384/kWh to be implemented for 84 months, or until the UR amount of ₱28 Billion is fully collected.

In addition, the ERC allowed NGCP to recover the MAR increase of ₱6.62 Billion, raising the previously approved MAR from ₱ 51.47 Billion to ₱ 58.10 Billion, translating to an anticipated increase of ₱0.0629/kWh.

The ERC approval forms part of NGCP’s Fourth Regulatory Period Reset, covering years 2016–2022. The third reset, covering 2010–2015, took place more than a decade ago. 

The approved increase will help finance NGCP’s efforts to further strengthen the power grid. #