Big drop in grid charges to lower May power bills

Electricity power grid
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CONSUMERS can anticipate a decrease in their May 2025 electric bills due to significantly lower transmission rates for the April 2025 billing period, the National Grid Corp. of the Philippines (NGCP) announced on Wednesday, May 14, 2025.

The overall equivalent average transmission rate for April 2025 has dropped by a substantial 28.45 percent to P1.0904/kWh, down from P1.5240/kWh in March. This reduction is attributed to decreases in both transmission wheeling rates and Ancillary Services (AS) rates.

NGCP’s transmission wheeling rates, the charges for delivering power, saw a 16.35 percent decrease, falling from P0.5505/kWh in March to P0.4605/kWh in April.

“For the May 2025 electric bill of the end consumers, NGCP charges only 46 centavos per kWh for the delivery of its services,” the company explained.

The average AS rates, which are pass-through costs for stabilizing the power grid, also decreased significantly by 36.07 percent to P0.5175/kWh in April, compared to P0.8094/kWh in March.

NGCP clarified that these AS charges are remitted directly to generating companies and the Independent Electricity Market Operator of the Philippines and NGCP does not profit from these costs.

Notably, the AS cost for the Visayas in April included the fourth tranche of the settlement for the remaining 70 percent of AS sourced from the Reserve Market during the March 2024 billing period, the recovery of which was previously deferred by the Energy Regulatory Commission.

The significant reduction in both transmission wheeling rates and AS rates is expected to provide some relief to consumers in their upcoming May electricity bills. / KOC

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