Higher ancillary service rates push overall average transmission rates in August 2026 electric bills

Power consumers of private distribution utilities and electric cooperatives may see an increase in transmission rates reflected in their August 2026 electricity bills due to a sharp increase in ancillary service (AS) rates.

AS rates, pass-through costs for power supplied by power generators who provide ancillary services during supply-demand imbalance, increased by 30.85%, from ₱0.7941/kWh in June to ₱1.0391/kWh in the July billing period.

NGCP emphasized 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’s transmission wheeling rate, or the fee for delivering power through the transmission grid, slightly increased, from ₱0.5044/kWh in June to ₱0.5436/kWh in July.

Overall, the equivalent average transmission rate for distribution utilities and electric cooperatives for the July 2026 billing period to be billed by distribution utilities and electric cooperatives this August increased by 22.22% to ₱1.7560/kWh, up from June’s ₱1.4367/kWh.

NGCP reiterates that bulk of the overall transmission rate is attributable to charges for Ancillary Services.

“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.

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