CAGAYAN de Oro City— Electricity consumers served by private distribution utilities and electric cooperatives may see higher transmission charges in their August 2026 power bills, driven mainly by a sharp increase in ancillary service (AS) rates, according to the National Grid Corporation of the Philippines (NGCP).
NGCP spokesperson for Northern Mindanao Elizabeth Ladaga said AS rates rose 30.85%, from ₱0.7941 per kilowatt-hour (kWh) in June to ₱1.0391/kWh in July.
Ancillary services are used to help keep the power system stable when electricity supply and demand do not match.
The costs are passed on to consumers and are paid to power generators providing these services.
NGCP said it does not earn from ancillary service charges.
The payments are remitted directly to generation companies with bilateral contracts with NGCP and to the Independent Electricity Market Operator of the Philippines (IEMOP) for services sourced from the Reserve Market.
Meanwhile, NGCP’s transmission wheeling rate—the fee for delivering electricity through the transmission grid—increased from ₱0.5044/kWh in June to ₱0.5436/kWh in July.
As a result, the equivalent average transmission rate for distribution utilities and electric cooperatives rose 22.22%, from ₱1.4367/kWh in June to ₱1.7560/kWh in July.
The July rate will be reflected in electricity bills issued this August.
NGCP said the increase is largely due to ancillary service charges, which are necessary to maintain grid stability and reliability, particularly during periods when power supply and demand are imbalanced.
“As System Operator, NGCP’s responsibility is to ensure grid stability and reliability, especially during periods of supply-demand imbalance,” the company said.
NGCP added that it does not benefit financially from changes in ancillary service prices because the payments go to the service providers supplying the reserves needed to keep the power system secure and reliable.
For consumers, the increase means transmission charges will account for a larger portion of their August electricity bills, although the actual impact on each customer's total bill will depend on the rates and charges imposed by their respective distribution utility or electric cooperative. (Ben Balce, Editorial Lead)
