The National Grid Corporation of the Philippines (NGCP) announced a 28.45 percent reduction in transmission rates for the April 2025 billing period, with potential easing effects on electricity costs for millions of consumers. The rate dropped to P1.0904 per kilowatt hour (kWh) from P1.5240 per kWh in March, primarily due to lower transmission wheeling and ancillary service (AS) charges.
The company’s transmission wheeling rate—the core cost of delivering electricity through high-voltage infrastructure—fell 16.35 percent to P0.4605 per kWh, while the AS rate, which covers contingency reserves from third-party power providers, plummeted 36.07 percent to P0.5175 per kWh.
For distribution utility Manila Electric Co. (Meralco), this translated to a P0.2970 per kWh reduction in consumer electricity bills for May.
But while the lower rates offer near-term relief to households and businesses grappling with inflationary pressures, NGCP remains in regulatory limbo over a recent Energy Regulatory Commission (ERC) ruling. The ERC earlier approved a maximum allowable revenue of P335.78 billion for NGCP’s 4th regulatory period (2016–2022), with P28.29 billion in under-recoveries to be amortized over seven years. This equates to an eventual P0.1013 per kWh increase in transmission charges—pending implementation.
NGCP spokesperson Cynthia Alabanza said the company awaits official ERC guidance before it can proceed with collection. “We are on a wait-and-see for now,” she said, noting that these funds are crucial for future transmission upgrades.
The short-term rate reduction could modestly alleviate consumer spending constraints and improve cost structures for energy-intensive industries. However, the unresolved implementation of the ERC’s revenue ruling injects uncertainty into long-term infrastructure financing—raising questions on the viability and pace of critical grid enhancements in an economy facing rising energy demand.
As the regulatory landscape remains fluid, stakeholders are watching closely for how the ERC’s final decision will shape power tariffs and investment flows in the country’s energy infrastructure sector.
