NGCP’s Transmission Rates up due to New Mar, Under-Recovery

Ruth Palo

Editor

posted on 1 month ago — updated on 1 second ago

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The Energy Regulatory Commission’s (ERC) approval of NGCP’s Maximum Allowable Revenue (MAR) and Under-Recoveries (UR) from 2016 to 2022, along with the decrease on the energy consumption from June to July 2025 Billing Period, resulted in an increase in NGCP's Transmission Rates in the July 2025 Billing Period which will be translated by the Distribution Utilities in the electric bills of their end consumers effective August 2025.

From PhP0.4611/kWh in June 2025 Billing Period, Transmission Rates rose to PhP0.5923/kWh or an increase of PhP0.1312/kWh.

Ancillary Services Rates, on the other hand, went down from PhP0.6182/kWh in June to PhP0.5872/kWh in July, a decrease of PhP0.0310/kWh.

Overall average Transmission Rates for the July 2025 Billing Period have increased to PhP1.3233/kWh, up by 9.25% from June’s PhP1.2113/kWh.

The ERC earlier approved a UR fixed rate of PhP0.0384/kWh to be implemented for 84 months, or until the UR amount of PhP28 Billion is fully collected.

In addition, the ERC allowed NGCP to recover the MAR increase of PhP6.62 Billion, raising the previously approved MAR from PhP 51.47 Billion to PhP 58.10 Billion, translating to an anticipated increase of PhP0.0629/kWh.

The ERC approval forms part of NGCP’s Fourth Regulatory Period Reset, covering years 2016–2022. The third reset, covering 2010–2015, took place more than a decade ago.

The approved increase will help finance NGCP’s efforts to further strengthen the power grid.