Ancillary services drive July 2025 transmission rates up: NGCP
Power consumers can expect higher transmission rates this July 2025, with the bulk of the increase driven by Ancillary Services (AS) rates, the National Grid Corporation of the Philippines (NGCP) announced.
For the June 2025 billing period, both AS and NGCP’s transmission wheeling rates increased, but the surge in AS costs accounts for most of the adjustment.
Overall equivalent average transmission rates for the June 2025 billing period increased by 5.49% to ₱1.2113/kWh, from May’s ₱1.1482/kWh.
The increase was driven by a 9.32% increase in ancillary service rates in the June 2025 billing period. From ₱0.5655/kWh in May, AS rates increased to ₱0.6182/kWh.
AS rates pertain to the pass-through costs for power supplied by AS providers to stabilize the grid during power supply-demand imbalance. AS charges are remitted directly to generating companies with bilateral contracts with NGCP, and to the Independent Electricity Market Operator of the Philippines (IEMOP) for the AS sourced from the Reserve Market.
The AS cost for Visayas for the June 2025 billing period includes the 6th and last tranche of the settlement of the remaining 70% AS from the Reserve Market during the March 2024 billing period whose recovery was deferred by the ERC.
NGCP does not earn from AS and does not benefit from the movement in prices.
Meanwhile, NGCP’s transmission wheeling rates slightly increased by 0.39%, from ₱0.4593/kWh in the May 2025 billing period to ₱0.4611/kWh in the June 2025 billing period.
Transmission wheeling rates are what NGCP charges for its primary service of delivering power.
“For the July 2025 electric bill of the end consumers, NGCP charges only ₱0.46/kWh for the delivery of its services,” NGCP explained, adding that AS still accounts for the bulk of transmission charges. ##