Ancillary service charges push July transmission rates higher
- July 15, 2026
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Electricity consumers may see a slight increase in transmission rates in their July 2026 electricity bills after higher Ancillary Services (AS) rates pushed up the overall average transmission rate, according to the National Grid Corporation of the Philippines (NGCP).
The equivalent average transmission rate for the June 2026 billing period, which will be reflected in July bills, rose by 0.77% to PHP 1.4604 per kilowatt-hour (kWh) from PHP 1.4492/kWh in May.
AS rates increased by 10.18%, from PHP 0.7220/kWh in May to PHP 0.7955/kWh in June.
Ancillary services are support services used to keep the grid stable during supply-demand imbalances, such as when available generation and electricity demand do not match.
NGCP said it does not earn from AS charges and does not benefit from changes in AS prices.
The grid operator said these are pass-through costs remitted directly to generation companies with bilateral contracts with NGCP, or to the Independent Electricity Market Operator of the Philippines (IEMOP) for AS sourced from the Reserve Market.
Meanwhile, NGCP’s own transmission wheeling rate, or the fee for delivering power through the transmission grid, decreased to PHP 0.5058/kWh in June from PHP 0.5607/kWh in May.
NGCP said the overall transmission rate still increased because ancillary services make up the bulk of the total transmission charge.
“As the system operator, NGCP’s priority is to ensure the grid remains resilient during supply-demand imbalances,” NGCP said.
“NGCP does not profit from AS charges, as these are remitted directly to the providers who help us maintain the continuous flow of electricity across the country,” it added.
For consumers, the key point is that the July increase is transmission-related but driven mainly by reserve and grid support costs.
Can clearer reporting of ancillary service costs help consumers better understand transmission charges in their monthly bills?
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