Transmission rates rose in August 2025 as higher Ancillary Services (AS) charges drove up overall costs, the National Grid Corporation of the Philippines (NGCP) announced on Tuesday.

The equivalent average transmission rate for the August billing period climbed 7.09% to PHP 1.4171/kWh, up from PHP 1.3233/kWh in July. NGCP attributed the increase mainly to AS charges, which went up by PHP 0.0787/kWh to PHP 0.6659/kWh, from PHP 0.5872/kWh in July.

Ancillary Services are crucial in keeping grid stability when supply and demand become imbalanced. Charges for these services are treated as pass-through costs—remitted directly to generating companies with bilateral contracts with NGCP, or to the Independent Electricity Market Operator of the Philippines (IEMOP) when sourced from the Reserve Market.

NGCP clarified that it does not profit from AS charges. “For August 2025, NGCP charges only about PHP 0.5970/kWh for its transmission service, while Ancillary Services remain the biggest component of transmission-related costs,” the grid operator said.

In contrast, NGCP’s own transmission wheeling rate — the fee for moving electricity through its nationwide grid — showed minimal change, inching up by just PHP 0.0047/kWh, from PhP0.5923/kWh in July to PhP0.5970/kWh in August.

The announcement follows a series of yellow alert advisories issued by NGCP in August across the Visayas grid due to thinning reserves. These alerts, SunStar reports, have been contributing to higher market prices and putting further pressure on end-user electricity rates.

What measures should the Philippines pursue to better manage Ancillary Services costs — expanding reserve capacity, accelerating new generation, or reforming pricing structures? Share your thoughts.

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