The Energy Regulatory Commission (ERC) has finalized the National Grid Corporation of the Philippines’ (NGCP) Fourth Regulatory Period (4th RP) Rate Reset, approving a significant increase in transmission charges to ensure grid reliability amid rising operational costs. The decision, which covers 2016 to 2022, introduces a delicate trade-off: bolstering the nation’s power backbone while adding a modest but noticeable burden to consumers’ electricity bills.
On March 26, the ERC decided that NGCP could collect PHP 335.78 billion to cover its costs for 2016 to 2022. This means electricity bills will go up by about PhP0.10 per kilowatt-hour (kWh) for the next seven years. The increase includes PHP 0.06/kWh for regular transmission fees and PHP 0.04/kWh to help NGCP recover PHP 28.29 billion it wasn’t able to collect earlier, as finalized in a meeting on April 11.
The rate hike was decided through a careful process set by the ERC’s updated rules from 2022. It happened in stages: a first draft was shared in September 2023, and after getting feedback from the public and others, a final version was opened for comments in November 2024. The ERC also locked in NGCP’s 2015 budget at PHP 43 million and gave NGCP a PHP 783.06 million bonus for good performance in 2014.
However, the decision wasn’t unanimous. ERC Chairperson and CEO Monalisa C. Dimalanta and Commissioner Catherine P. Maceda dissented, with their opinions to be released alongside the official resolutions. Notices of Commission Action are available at the ERC website.
For consumers, the additional PHP 0.1013/kWh may seem small but could compound existing pressures on household budgets, especially in a post-pandemic economy. Yet, industry insiders argue the increase is critical to sustain NGCP’s infrastructure upgrades and prevent grid failures that could disrupt businesses and essential services.
How will this rate hike impact your household or business? Share your thoughts on the ERC’s decision and its implications for the Philippines’ energy future.
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