The National Grid Corporation of the Philippines (NGCP) has announced a substantial reduction in transmission rates for May 2025 electric bills, driven by lower wheeling and ancillary services charges.
According to NGCP’s latest news release, the overall equivalent average transmission rate for the April 2025 billing period plummeted by 28.45%, dropping to PHP 1.0904 per kilowatt-hour (kWh) from March’s PHP 1.5240/kWh. The decline stems from a 16.35% reduction in transmission wheeling rates, now at PHP 0.4605/kWh from PHP 0.5505/kWh, and a 36.07% cut in Ancillary Services (AS) rates, which fell to PHP 0.5175/kWh from PHP 0.8094/kWh.
“For the May 2025 electric bill of the end consumers, NGCP charges only 46 centavos per kWh for the delivery of its services,” NGCP stated, emphasizing that ancillary services still constitute the majority of transmission costs. These AS charges, which stabilize the grid during supply-demand imbalances, are passed directly to generating companies and the Independent Electricity Market Operator of the Philippines (IEMOP) without profit to NGCP.
The rate cut’s impact is particularly notable in the Visayas, where April 2025 AS costs include the fourth tranche of deferred payments from the March 2024 Reserve Market, as mandated by the Energy Regulatory Commission (ERC). This strategic recovery approach highlights NGCP’s efforts to balance grid reliability with consumer affordability.
As households brace for economic challenges, this reduction offers a glimmer of hope, potentially lowering monthly electricity expenses. NGCP’s commitment to transparent pricing and grid stability underscores the importance of such measures in supporting Filipino consumers.
What do you think about NGCP’s transmission rate cut? How could this development shape your household savings? Join the conversation!
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