Your April Electricity Bill Might Be a Bit Higherโ€”Whatโ€™s Driving It

April electricity bills may rise slightly as transmission rates increase, driven by higher ancillary service charges, says NGCP. (Image by freepik)

Power consumers across the Philippines may notice a modest uptick in their April 2026 electricity bills, driven mainly by higher transmission-related charges.

The overall transmission rate for the March 2026 billing periodโ€”reflected in April billsโ€”rose by 4.26% to โ‚ฑ1.7526 per kilowatt-hour (kWh), from โ‚ฑ1.6810/kWh in February, according to the National Grid Corporation of the Philippines.

Whatโ€™s pushing rates up?

The biggest factor remains ancillary service (AS) chargesโ€”costs tied to standby power supplied by generators to stabilize the grid during supply-demand imbalances. These charges increased to โ‚ฑ0.8516/kWh in March, up from โ‚ฑ0.8275/kWh in February.

AS charges typically make up the largest portion of transmission costs because they ensure the system can respond quickly to fluctuations in electricity demand or unexpected outages.

Does NGCP benefit from this?

NGCP is clear: it does not earn from ancillary service charges.

The company will pass these costs directly to power providers, including generators with bilateral contracts and the Independent Electricity Market Operator of the Philippines, which manages the reserve market.

โ€œAs the system operator, NGCPโ€™s priority is to keep the grid stable,โ€ the company said, emphasizing that AS payments go to providers that help maintain uninterrupted electricity flow.

What about transmission fees?

The transmission wheeling rateโ€”the fee for delivering electricity through the gridโ€”also inched up to โ‚ฑ0.7022/kWh, from โ‚ฑ0.6677/kWh in February.

Still, NGCP stressed that even this increase does not translate to higher earnings for the company. Its revenue is capped by the Energy Regulatory Commission, which regulates how much it can collect.

See also  Dispute Resurfaces Over Commercial Fishing In Municipal Waters

Bottom line

While the increase is relatively small, it highlights how grid stability costsโ€”especially ancillary servicesโ€”continue to drive transmission charges. For consumers, that means slightly higher bills, even if the grid operator itself does not directly profit from these adjustments.

About The Author

Leave a Reply

Your email address will not be published. Required fields are marked *