ELECTRICITY consumers in the Davao Region and across the country will experience a slight increase in their power bills this April, following a nationwide hike in transmission charges announced by the National Grid Corporation of the Philippines (NGCP).
The increase, driven primarily by rising Ancillary Service (AS) costs, marks a notable jump in the overall cost of delivering electricity to homes and businesses.
In a statement issued Tuesday, April 15, 2025, NGCP revealed that AS charges, fees associated with securing reserve power to maintain grid reliability, have risen significantly, impacting the final rates passed on to end-users. The grid operator clarified that these costs are not retained by NGCP but are transferred directly to generating companies and AS providers.
"For the April 2025 bills of end consumers, NGCP charges only 55 centavos per kilowatt-hour (kWh) for the delivery of its services. The bulk of transmission charges is for AS, which is remitted directly to AS providers," the company said.
AS charges for the March 2025 billing cycle increased by 16.05 percent, reaching P0.8094/kWh from P0.6975/kWh in February. This jump also incorporates the third and final tranche of a deferred recovery tied to unsettled AS costs from March 2024, which the Energy Regulatory Commission (ERC) had previously approved for staggered implementation.
Transmission wheeling rates, the base fee NGCP collects for transporting electricity through its high-voltage network — also rose by 4.81 percent, climbing from P0.5252/kWh in February to P0.5505/kWh in March.
In total, NGCP reported an 11.51 percent increase in transmission-related charges, pushing the overall rate to P1.5240/kWh from the previous month’s P1.3668/kWh. These adjustments apply uniformly across all regions served by the grid, including Mindanao.
NGCP underscored that while it facilitates the flow of electricity, it does not profit from the elevated AS charges. Instead, these increases reflect higher market rates for reserve power and previously approved cost recoveries that are now being implemented.
As electricity costs continue to fluctuate, industry observers advise consumers to monitor billing updates closely and explore energy efficiency measures to help manage rising expenses. The ERC, meanwhile, is expected to maintain oversight of these adjustments to ensure transparency and consumer protection. DEF