The National Grid Corp. of the Philippines recorded a 7.09 percent increase in average transmission rates for the August billing period, citing higher ancillary services (AS) expenses from the reserve market.
The average transmission rate rose to P1.4171 per kilowatt-hour (kWh) in August from P1.3233/kWh in July. AS charges accounted for most of the adjustment, climbing by P0.0787/kWh to P0.6659/kWh from P0.5872/kWh.
NGCP’s transmission wheeling rate, on the other hand, tallied only a slight uptick, reaching P0.5970/kWh from P0.5923/kWh month-on-month.
NGCP said the higher AS charges reflected increased spot market volumes and rising prices, with oil-based generating plants contributing to the cost escalation.
“NGCP does not earn from AS and does not benefit from changes in AS prices,” the grid operator said.
It added that AS payments are remitted either to generating companies with bilateral contracts with NGCP or to the Independent Electricity Market Operator of the Philippines for reserves sourced through the market.
“For August 2025, NGCP charges only about P0.5970/kWh for its transmission service, while Ancillary Services remain the biggest component of transmission-related costs,” the company said.
