The National Grid Corporation of the Philippines (NGCP) on Wednesday announced a 2.03 percent increase in its wheeling rate for the January billing period, affecting consumers when they receive their February electricity bills.
In a briefing, NGCP confirmed that the rate for delivering grid power beyond its own boundaries has risen from P0.5315 per kilowatt-hour (kWh) in December 2024 to P0.5422 per kWh in January. According to Ryan Datinggaling, NGCP head of revenue management, the hike is due to lower electricity consumption in January. NGCP operates on a fixed revenue system, meaning when demand is low, the rate per kWh must adjust to meet revenue targets.
In addition, ancillary service (AS) rates, which are included in the wheeling rate, saw a more significant increase of 12.02 percent, from P0.5928 per kWh in December 2024 to P0.0712 per kWh in January this year. Datinggaling explained the jump was partly due to the first tranche of payments for uncollected amounts from the AS reserve market, which was suspended by the Energy Regulatory Commission (ERC) in March last year due to its impact on power rates. The uncollected funds will now be recouped over a period of months, contributing to the rate increase.
AS rates are crucial for ensuring grid reliability, as they provide reserve power in case of emergency such as power plant failures or transmission issues. These costs, which NGCP passes on to consumers, are contracted from both firm agreements and the AS reserve market in compliance with regulations.
The adjustments highlight the upward pressure on electricity cost in the Philippines as fluctuating consumption patterns and regulatory changes continue to influence power rates. Consumers can expect slightly higher electricity bills as a result of these increases.
