NGCP Cuts Transmission Charges By 9.33%, Bringing Lower Power Bills In June
- June 19, 2026
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Electricity consumers are set to see lower charges in their June power bills after the National Grid Corporation of the Philippines (NGCP) announced a 9.33-percent reduction in transmission rates for the May billing period, driven by lower transmission wheeling and ancillary services costs.
The grid operator said the overall average transmission rate declined to ₱1.4492 per kilowatt-hour (kWh) from ₱1.5983 per kWh recorded in April. The reduction will be reflected in the electricity bills issued this month.
NGCP said the lower transmission charges stemmed from decreases in both its wheeling rates, which cover the delivery of electricity through the transmission network, and ancillary services costs, which help maintain grid stability during supply-demand imbalances.
Lower Wheeling And Ancillary Services Costs
Transmission wheeling rates fell by 6.99 percent to ₱0.5607 per kWh in May from ₱0.6028 per kWh in April.
The company emphasized that for June billing, it charges only about 56 centavos per kWh for its core service of transmitting electricity from generating plants to distribution utilities and end-users. NGCP also noted that its revenues are subject to regulation and are capped by the Energy Regulatory Commission (ERC).
Ancillary services rates likewise dropped by 10.73 percent, declining to ₱0.7220 per kWh from ₱0.8088 per kWh in the previous month.
These charges cover the cost of reserve power procured from generators with bilateral agreements with NGCP and from the reserve market administered by the Independent Electricity Market Operator of the Philippines (IEMOP). Ancillary services are tapped to stabilize the grid and ensure reliable operations when supply and demand fluctuate.
NGCP reiterated that it does not earn from ancillary services charges, as these payments are passed directly to service providers and market operators.
Rate Reductions Across Major Grids
The decline in transmission charges was reflected across the country’s three major grids.
In Luzon, transmission rates fell by ₱0.1481 per kWh, while consumers in the Visayas saw a larger reduction of ₱0.2884 per kWh. Mindanao recorded a smaller decrease of ₱0.0140 per kWh.
The reduction comes as the country transitions into the rainy season, a period when electricity demand typically eases compared with the hotter summer months.
According to NGCP head of revenue management Julius Ryan Datingaling, lower demand is expected in the coming months as temperatures moderate and weather conditions change.
Grid Outlook
Despite recent supply concerns in some areas, NGCP maintained that the country’s power situation remains generally stable.
NGCP spokesperson Cynthia Perez-Alabanza said consumers should not expect widespread grid alerts for the remainder of the year as long as major generating facilities remain available and no significant unplanned outages occur.
She noted that the country’s reserve situation remains manageable provided that forced shutdowns do not reach levels that would significantly reduce available ancillary services and excess generating capacity.
However, the grid operator acknowledged that generation outages continue to pose challenges, particularly in the Visayas.
Visayas On Yellow Alert
On Monday, NGCP placed the Visayas grid under a yellow alert from 4 p.m. to 9 p.m. after available capacity narrowed relative to projected demand.
Data from the grid operator showed available capacity at 2,581 megawatts (MW) against a peak demand of 2,482 MW, resulting in a thinner operating margin.
A yellow alert is declared when the operating reserve falls below the level required to meet contingency requirements, indicating tighter supply conditions, though not necessarily a power shortage.
NGCP said the alert was triggered by high demand projections and the continued unavailability of several large generating units in the region. Among the affected facilities were TVI 1, TVI 2, PEDC 3, and KSPC 1, all of which contributed to reduced available capacity.
The company reported that 953.1 MW of generation capacity remained unavailable to the grid. Several power plants have been on forced outage for different periods, while others continue to operate at reduced or derated capacities.
Even with these constraints, NGCP expressed confidence that the broader power system can remain stable if generating units return to service as scheduled and no major unexpected disruptions occur.
Source:
https://manilastandard.net/business/314753432/ngcp-announces-lower-transmission-rates-for-june.html
https://business.inquirer.net/595457/transmission-rates-drop-in-consumers-june-power-bills
