Transmission Rates Shielded From Middle East Conflict, But March Charges Rise on Ancillary Costs
- April 19, 2026
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The National Grid Corporation of the Philippines (NGCP) said electricity transmission charges will not be affected by ongoing tensions in the Middle East, explaining that its rates are regulated and not linked to fuel price movements.
NGCP spokesperson Cynthia Alabanza said the company operates under a “revenue-capped” framework set by the Energy Regulatory Commission (ERC), meaning its allowable annual earnings are predetermined.
“Our services and our transmission wheeling rates are not fuel-dependent; there is no impact or there will be no improvement on transmission rates based on the Middle Eastern conflict,” Alabanza said.
This structure shields transmission charges from volatility in global oil and gas markets, even as geopolitical risks continue to influence generation costs.
March Transmission Rates Climb
Despite insulation from external fuel shocks, NGCP reported a 4.26-percent increase in overall transmission rates for March, which will be reflected in consumers’ April electricity bills.
Transmission charges rose to ₱1.7526 per kilowatt-hour (kWh), up from ₱1.6810 per kWh in February.
The increase was primarily driven by higher ancillary service (AS) costs and changes in billing determinants, including lower energy demand during the period, according to NGCP officials.
Julius Ryan D. Datingaling, NGCP head of business and regulatory development, said reduced energy consumption for the March billing period contributed to the higher per-unit transmission cost.
Ancillary Services Drive Increase
Ancillary services, which is support power sourced from generators to stabilize the grid during supply-demand imbalances, accounted for the largest share of the increase.
AS rates climbed to ₱0.8516 per kWh in March from ₱0.8275 per kWh in February, reflecting higher demand in the Visayas and increased fuel prices used by service providers.
NGCP emphasized that these costs are purely pass-through charges and do not contribute to its revenues.
“As the system operator, NGCP’s priority is to ensure the grid remains resilient during supply-demand imbalances,” the company said. “NGCP does not profit from ancillary service charges, as these are remitted directly to the providers.”
Payments for ancillary services are forwarded to generation companies with bilateral contracts and to the Independent Electricity Market Operator of the Philippines for reserve market transactions.
Grid Stability Remains A Priority
Transmission wheeling rates, which are the cost of delivering electricity through the grid, also posted a modest increase. For March, wheeling rates rose to ₱0.7022 per kWh from ₱0.6677 per kWh in February, equivalent to a month-on-month increase of about 5.2 percent.
Despite the uptick, NGCP reiterated that such adjustments do not translate into higher profits, as revenues remain capped under ERC regulations.
NGCP maintained that its operational focus remains on ensuring grid reliability, particularly as demand patterns shift and system imbalances occur.
While consumers may see higher transmission-related charges in the short term, the company stressed that these reflect system costs rather than discretionary pricing.
The transmission operator’s rate structure, anchored on regulatory oversight and cost recovery mechanisms, continues to separate it from fluctuations affecting the broader energy market.
Source:
https://business.inquirer.net/585357/ngcp-middle-east-war-wont-affect-electricity-grid-charges
https://www.manilatimes.net/2026/04/16/news/national/ngcp-rates-to-go-up-in-april/2321223
