MANILA, Philippines — Electricity consumers served by private distribution utilities and electric cooperatives may see higher transmission charges in their August 2026 power bills following a significant increase in ancillary service (AS) rates, according to the National Grid Corporation of the Philippines (NGCP).
The overall average transmission rate for the July 2026 billing period rose by 22.22% to P1.7560 per kilowatt-hour (kWh), from P1.4367/kWh in June. The higher rate will be reflected in electricity bills issued by distribution utilities and electric cooperatives this August.
The increase was largely driven by the sharp rise in ancillary service charges, which climbed by 30.85% to P1.0391/kWh in July from P0.7941/kWh in June.
Ancillary services are power reserves and related services procured to help maintain grid stability and reliability, particularly during periods when electricity supply and demand are out of balance.
NGCP said the increase in AS charges does not translate into additional earnings for the transmission grid operator.
The company explained that ancillary service charges are pass-through costs that are remitted directly to generation companies with bilateral contracts with NGCP, as well as to the Independent Electricity Market Operator of the Philippines (IEMOP) for ancillary services sourced through the Reserve Market.
Meanwhile, NGCP’s transmission wheeling rate—the charge for transporting electricity through the transmission network—also increased, although at a more modest pace, from P0.5044/kWh in June to P0.5436/kWh in July.
NGCP emphasized that ancillary service charges account for the bulk of the overall transmission rate and that the company does not benefit from changes in AS prices.
“As System Operator, NGCP’s responsibility is to ensure grid stability and reliability, especially during periods of supply-demand imbalance. NGCP does not earn from Ancillary Service charges. These payments are remitted to the service providers that supply the reserves needed to keep the power system secure and reliable,” the company said.
The latest adjustment highlights the role of ancillary services in maintaining the reliability of the Philippine power grid, particularly as system operators manage fluctuations in electricity supply and demand.
For consumers, the higher transmission rate will form part of the pass-through charges included in electricity bills for August, with the actual impact varying depending on the rates and consumption of individual distribution utilities and electric cooperatives.