TACLOBAN CITY – Consumers can expect higher electricity bills this month as the National Grid Corporation of the Philippines’ (NGCP) transmission rates rose by 9.25%, following the Energy Regulatory Commission’s (ERC) approval of rate adjustments and under-recovery charges.
From P0.4611 per kilowatt-hour (kWh) in the June 2025 billing period, NGCP’s transmission rates climbed to P0.5923/kWh in July, an increase of P0.1312/kWh. While ancillary service rates dropped slightly from P0.6182/kWh to P0.5872/kWh, the overall average transmission rate still increased from P1.2113/kWh in June to P1.3233/kWh in July.
This adjustment will be reflected in consumers’ August bills as distribution utilities pass on the higher charges.
The ERC’s decision includes two major components: under-recoveries (UR): A fixed rate of P0.0384/kWh will be collected over 84 months to recover P28 billion in uncollected transmission charges from 2016 to 2022, and maximum allowable revenue (MAR): NGCP was allowed to recover an additional P6.62 billion, increasing the MAR from P51.47 billion to P58.10 billion. This translates to an additional P0.0629/kWh in transmission charges.
These adjustments form part of NGCP’s Fourth Regulatory Period Reset, which covers 2016–2022. The previous reset, covering 2010–2015, was implemented more than a decade ago.
According to the ERC, the approved rate increases will enable NGCP to fund projects aimed at improving and expanding the country’s power transmission network. The grid operator has repeatedly emphasized the need for infrastructure investments to address power reliability concerns and meet growing demand.
The increase in transmission rates comes despite a noted decrease in energy consumption from June to July 2025, which typically helps temper rate hikes. However, the approved recovery charges and MAR adjustments outweighed the effect of lower usage.
Industry observers note that while the ERC’s ruling ensures NGCP can recover past costs and fund grid upgrades, it will put additional strain on households and businesses already dealing with high electricity prices due to fuel and generation cost pressures.
(LIZBETH ANN A. ABELLA)
