POWER consumers should prepare for higher electricity bills in July 2025, as the National Grid Corporation of the Philippines (NGCP) announced that increased ancillary service (AS) rates will be the main factor driving the rise.
While overall transmission rates have also increased slightly, it is the surge in AS charges — up by over 9% — that will significantly impact household and business power expenses.
For the June 2025 billing period, the combined average transmission rate rose by 5.49% to P1.2113 per kWh from P1.1482 per kWh in May. This increase was primarily driven by a 9.32% hike in ancillary service rates, which jumped from P0.5655 per kWh in May to P0.6182 in June.
Ancillary services are costs passed through to consumers to stabilize the grid during supply-demand imbalances.
These charges are remitted directly to generating companies with bilateral contracts with NGCP, as well as to the Independent Electricity Market Operator of the Philippines (IEMOP) for services sourced from the Reserve Market.
The higher AS cost for Visayas in June included the final tranche of the settlement for the remaining 70% of AS from the Reserve Market during the March 2024 billing period, a recovery deferred by the Energy Regulatory Commission (ERC).
NGCP explained that it does not earn from AS charges nor benefits from fluctuations in their prices, as these are pass-through costs.
Meanwhile, NGCP’s transmission wheeling rates saw a modest increase of 0.39%, from P0.4593 per kWh in May to P0.4611 per kWh in June. These rates represent what NGCP charges for delivering power across the grid.
Looking ahead, NGCP clarified that for the July 2025 billing period, the transmission delivery charge remains at P0.46 per kWh.
However, it is the ancillary service costs that will constitute the bulk of the transmission charges, meaning consumers can expect higher overall power bills this month due to the elevated AS rates.