Electricity consumers can expect an increase in their March 2025 bills as Ancillary Services (AS) rates rise. The National Grid Corporation of the Philippines (NGCP) confirmed that while its transmission wheeling rates declined, higher AS costs contributed to the overall increase in charges.
Transmission wheeling rates dropped by 3.14%, from PhP0.5422/kWh in January 2025 to PhP0.5252/kWh in February 2025. However, AS rates rose by 5.05% during the same period, from PhP0.6640/kWh to PhP0.6975/kWh. This increase includes the second tranche of settlement costs from the March 2024 billing period, which was deferred by the Energy Regulatory Commission (ERC).
Ancillary Services are critical in stabilizing the power grid, covering costs from both Reserve Market transactions and bilateral contracts with AS providers. According to NGCP, it charges only PhP0.52/kWh for its transmission services, while the bulk of the transmission cost is directly remitted to AS providers.
NGCP reiterated that it does not profit from AS charges, as these are pass-through costs benefiting generating companies. AS remains essential for balancing and stabilizing the grid, ensuring reliable electricity supply for consumers.
