NGCP: Higher ancillary service costs drive up April transmission charges
CONSUMERS will be seeing a noticeable increase in their April 2025 electricity bills due to a spike in Ancillary Service (AS) charges, according to the National Grid Corp. of the Philippines (NGCP).
For the March 2025 billing period, AS charges rose by 16.05 percent to P0.8094/kWh, up from P0.6975/kWh in February. NGCP attributed the hike to the inclusion of the third tranche of payments for unsettled AS costs from the March 2024 billing period, which were previously deferred by the Energy Regulatory Commission.
Ancillary Services are essential support functions provided by power generators to maintain grid stability and manage fluctuations in electricity supply and demand. These services are either procured from the Reserve Market or through bilateral agreements with NGCP.
“As a pass-through cost, the increase in AS charges directly benefits AS providers. NGCP does not profit from these adjustments,” the company said. “For April 2025, NGCP only charges 55 centavos per kWh for the delivery of its core services, while the bulk of the transmission charge is remitted to AS providers.”
NGCP also noted that its transmission wheeling rate — the cost of transporting electricity from generators to distributors — increased slightly by 4.81 percent, from P0.5252/kWh in February to P0.5505/kWh in March.
Overall, total transmission charges for the March billing period climbed to P1.5240/kWh, marking an 11.51 percent increase from P1.3668/kWh in February.
The adjustments are part of ongoing efforts to ensure grid reliability amid rising demand and continued energy market reforms. / KOC
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