Ancillary Services Drive March Transmission Rate Increase in the Philippines
The National Grid Corp. of the Philippines (NGCP) announced on Wednesday, April 15, 2026, that ancillary services were the primary driver behind the rise in transmission rates for the March billing period. During a briefing, Julius Ryan Datingaling, NGCP head for Revenue Management, provided detailed insights into the rate adjustments affecting consumers across the country.
Rate Increases and Breakdown
The overall transmission rate for March increased by 4.26 percent, reaching P0.0716 per kilowatt-hour (kWh), up from P1.6810/kWh in February. Ancillary services, which include pass-through charges for grid stability, frequency control, and reserves, accounted for the bulk of this increase at P0.8516/kWh. Meanwhile, the transmission wheeling rate, representing the cost of delivering power through the grid, also rose to P0.7022/kWh from P0.6677/kWh in the previous month.
Regional Variations in Rate Changes
By grid, Luzon experienced an increase of P0.0335/kWh, Visayas saw a rise of P0.3416/kWh, and Mindanao recorded an uptick of P0.0073/kWh. These variations highlight the differing impacts across regions, with Visayas showing the most significant change due to local grid conditions and service requirements.
Clarification on Revenue and External Factors
NGCP spokesperson and head of Corporate Communication and Public Affairs, Cynthia Alabanza, clarified that the company does not profit from these rate increases. She explained that NGCP operates under a revenue cap predetermined by the Energy Regulatory Commission (ERC), ensuring that any adjustments are strictly tied to operational costs. Alabanza emphasized that transmission rates are not fuel-dependent, meaning external factors such as the Middle Eastern conflict have no impact on these charges. This regulatory framework aims to protect consumers from unnecessary price fluctuations while maintaining grid reliability and stability across the Philippines.
