ELECTRICITY consumers across the country should prepare for higher power bills this month, as a significant surge in ancillary service (AS) costs has pushed up overall average transmission rates for August 2026.
According to data from the National Grid Corporation of the Philippines (NGCP), the equivalent average transmission rate for distribution utilities and electric cooperatives rose by 22.22%, climbing to ₱1.7560 per kilowatt-hour (kWh) for the July billing period from ₱1.4367/kWh in June.
This increase will be reflected in consumers’ August electricity statements.
The main driver behind the uptick is a 30.85% jump in ancillary service rates, which went from ₱0.7941/kWh in June to ₱1.0391/kWh in July.
AS fees represent pass-through costs paid to power generation companies providing grid stabilization during supply-demand imbalances.
Meanwhile, NGCP’s actual transmission wheeling rate—the fee charged for delivering electricity through the national grid—saw only a slight adjustment, moving from ₱0.5044/kWh to ₱0.5436/kWh.
NGCP reiterated that the bulk of the transmission charge is tied directly to ancillary services, stressing that it does not profit from these fluctuations.
“As System Operator, NGCP’s responsibility is to ensure grid stability and reliability,” the firm stated. “These payments are remitted directly to service providers and the Independent Electricity Market Operator of the Philippines (IEMOP) to supply reserves needed to keep the power system secure.”
The rate announcement comes alongside fresh supply pressure on regional power grids.
On Friday, August 14, NGCP placed the Visayas grid under red and yellow alerts after multiple power plant outages sidelined 829 megawatts (MW) of capacity, creating a severe supply deficit against a forecasted peak demand of 2,511 MW.
Major disruptions were caused by the ongoing unavailability of Therma Visayas Inc. Units 1 and 2, alongside maintenance and emergency shutdowns at GNPK Units 1 and 2, which also restricted power imports from Mindanao.
Mindanao experienced a brief yellow alert earlier in the day due to 661.4 MW in forced plant outages, though normal grid conditions were restored by early afternoon.
