Transmission fees and ancillary charges increased in June electricity bills by NGCP.
Electricity Rates Shift in May 2025: Breaking Down Transmission Wheeling and Ancillary Services
Let's dive into the latest happenings with the electricity rates in the Philippines, specifically focusing on Transmission Wheeling and Ancillary Services (AS).
The National Grid Corporation of the Philippines (NGCP) recently announced a decrease of 0.27% in Transmission Wheeling rates. The rate dropped from PhP0.4605/kWh in April to PhP0.4593/kWh in May. Although it seems like a minor decrease, every bit counts!
On the flip side, the AS rates experienced a significant surge, rising by a whopping 9.29%. From PhP0.5175/kWh in April, the rates jumped to PhP0.5655/kWh in May, increasing by PhP0.0480/kWh.
You might wonder, what are the AS rates all about? Well, AS rates are essentially fees collected by NGCP to support services that help balance and stabilize the grid during power supply–demand imbalances. These services can be sourced from the AS reserve market or from providers with bilateral contracts with the NGCP.
As a pass-through cost, AS rates are directly remitted to the generation companies providing these essential grid support services, ensuring the cost is borne by the end consumers without any markup by the NGCP.
So, when you're looking at your June 2025 electricity bill, don't be alarmed by the overall average transmission rate of PhP1.1482/kWh, which reflects a 4.60% increase from April's PhP1.0978/kWh. The rise in AS rates contributes to this increase in overall electricity costs for consumers.
Keep in mind that Ancillary Services rates are determined through a Competitive Selection Process (CSP) conducted by the NGCP. This process aims to ensure that AS providers are competitively selected to offer these crucial grid support services, with rates calculated based on the total cost of AS provision billed by the providers, adjusted as necessary.
Stay informed about these changes to make smarter decisions about your energy consumption and costs. Keep an eye on your bills, and who knows, you might even find ways to save a pretty penny!
Enrichment Data:
Ancillary Services: The Unsung Grid Heroes
In the power industry, Ancillary Services (AS) play a pivotal role in maintaining grid stability and balancing power supply and demand. These services are typically sourced from the AS reserve market or from providers with bilateral contracts with the National Grid Corporation of the Philippines (NGCP).
Determination of Ancillary Services Rates
The rates for Ancillary Services are determined through a Competitive Selection Process (CSP) conducted by NGCP. This process aims to ensure that AS providers are competitively selected to offer these essential grid support services. The rates are calculated based on the total cost of AS provision billed by the providers, adjusted as necessary.
Pass-Through Costs
Ancillary Services rates are considered pass-through costs, meaning they are collected by NGCP and directly remitted to the generation companies providing these services. This approach ensures that the cost of these services is borne by the end consumers without any markup by NGCP.
The Climb in Ancillary Services Rates
The hike in Ancillary Services rates in May 2025 can be attributed to various factors, such as changes in demand, supply conditions, and the operational costs of AS providers within the grid. Given their importance in maintaining the grid's stability, especially during periods of high demand or supply imbalances, the increase may reflect efforts to ensure reliable grid operations. The rise in AS rates contributes to higher overall electricity costs for consumers, as these costs are directly passed on to them.
The increase in Ancillary Services (AS) rates, a significant factor in electricity costs for consumers, is due to a combination of changing demand, supply conditions, and operational costs of AS providers in the Philippines. These rates, which are pass-through costs, are determined through a Competitive Selection Process (CSP) conducted by the National Grid Corporation of the Philippines (NGCP), and are collected by NGCP before being remitted to the generation companies providing these crucial services. Consequently, it is essential for businesses, finance, and industry in the Philippines to stay informed about these changes to make Energy-efficient decisions and find potential savings.
