Electricity consumers will see higher power bills in March 2025 as the increase in Ancillary Services (AS) rates offsets the reduction in transmission wheeling charges.
The National Grid Corporation of the Philippines (NGCP) announced that its transmission wheeling rate dropped by 3.14%, from PHP0.5422 per kilowatt-hour (kWh) in January 2025 to PHP0.5252 per kWh in February 2025.
However, AS charges increased by 5.05%, reaching PHP0.6975 per kWh in February 2025 from PHP0.6640 per kWh in January 2025. The increase includes the second tranche of the settlement of 70% of AS costs from the March 2024 billing period, which had been deferred by the Energy Regulatory Commission (ERC).
Ancillary services are essential for stabilizing the grid and balancing supply and demand. These services are sourced either from the Reserve Market or through bilateral contracts with AS providers.
“For the March 2025 billing of the end-consumers, NGCP charges only 52 centavos per kWh for the delivery of its services. The bulk of transmission charges is for AS, which is remitted directly to AS providers,” NGCP stated.
NGCP clarified that it does not profit from AS charges, as these costs are passed directly to AS providers, mainly power generators.
Consumers should prepare for higher electricity bills in March, as AS costs remain a significant component of transmission charges.
