THE Philippines’ grid operator is pressing regulators to unbundle transmission charges, a move it says would improve cost transparency for consumers and clarify which portions of electricity bills stem from pass-through costs rather than the company’s own fees.
The National Grid Corp. of the Philippines (NGCP) said separating transmission wheeling charges from ancillary services (AS) and other items would help consumers better understand fluctuations in power bills, as AS costs have driven much of the recent movement in transmission rates.
For the November 2025 billing period, the equivalent average transmission rate fell to P1.3547 kilowatt-hour, down from P1.5105 in October, reflecting changes in both wheeling and AS charges, NGCP said.
Transmission wheeling covers the cost of delivering electricity through the grid, while AS charges are pass-through costs paid to generators that provide reserve capacity to manage supply-demand imbalances. NGCP said AS costs do not accrue to the company and are fully collected and remitted to AS providers in line with regulatory rules.
“Over the past year, AS rates formed the bulk of transmission charges following the shift to all-firm AS contracts and the commercial operations of the Ancillary Services Reserve Market,” NGCP said, adding that these costs can significantly affect monthly rate movements.
Another item included in transmission charges is the feed-in tariff allowance (Fit-All), which NGCP said applies only to consumers directly connected to the grid and is not charged to distribution utilities and electric cooperatives such as Meralco and Visayan Electric. Fit-All collections are remitted to state-owned TransCo.
NGCP said unbundling would clearly distinguish pass-through charges such as AS and Fit-All from transmission wheeling rates, which represent the company’s actual charge for power delivery services.
“It is only proper that these be clearly separated,” NGCP said, arguing that greater transparency would help consumers and policymakers assess the true drivers of electricity costs. / KOC