Beginning in August, the National Grid Corporation of the Philippines (NGCP) will impose an increase of up to 13 centavos per kilowatt-hour (kWh) in transmission charges. The adjustment, approved by the Energy Regulatory Commission (ERC), is tied to an earlier under-recovery and will be collected over 84 months until mid-2032, according to NCGP Assistant Vice President and Public Relations Head Cynthia Perez-Alabanza.
NGCP maintained that the higher rates would have only a “very minimal” effect on consumers. Perez-Alabanza said the adjustment corresponds to about ₱400 billion in investments, framing the increase as relatively small in proportion.
NGCP said the approved adjustment would support ongoing efforts to reinforce the country’s power grid. The company pointed out it has been investing in transmission upgrades since 2016, adding that the increase will “help strengthen our systems” and sustain service improvements.
(Also read: Green Energy Grows in W. Visayas—But Can the Grid Keep Up?)
Previous increases
Between late 2024 and mid-2025, NGCP adjusted its transmission fees at least five times, driven mainly by fluctuations in ancillary service (AS) costs, with wheeling rates also playing smaller roles. AS refers to backup and support services that keep the power grid stable, while wheeling rates are the fees charged for delivering electricity through transmission lines.
In September and October 2024, AS charges fell 7.3%, slightly easing transmission fees amid offsetting wheeling increases. Then in February 2025, rates jumped as AS climbed 12% to ₱0.664/kWh, and wheeling ticked up to ₱0.5422/kWh, which increased overall transmission.
In March 2025, transmission charges climbed again as ancillary service costs went up, offsetting a small dip in wheeling fees. The trend continued in April, with both components rising further and pushing overall charges to their highest level so far at ₱1.3668/kWh.
By May 2025, transmission costs eased by 43 centavos as both AS and wheeling rates declined, bringing bills down for consumers. However, by July, rates edged upward again by 5.49%, with higher AS costs and a slight wheeling increase driving overall charges to ₱1.2113/kWh.
Necessary or excessive?
Rate hikes help finance critical investments and cover under-recovered operational costs. According to this article, the NGCP’s rate reset is a regular regulatory process meant to assess a utility’s performance and spending plans, striking a balance between fair consumer pricing and financial sustainability. NGCP, which has managed the national transmission grid since 2009, operates under a 50-year franchise granted by Congress.
On its website, NGCP emphasized that most of the increases come from ancillary service (AS) costs, which are pass-through expenses that do not generate profit for the company.
Furthermore, the ERC oversees NGCP’s spending, with capital projects reviewed to ensure only necessary and cost-efficient costs are passed on to consumers.
But the agency’s track record leaves more to be desired. In fact, earlier this year, the Maharlika Investment Corporation, which manages the government’s Maharlika Investment Fund, acquired a 20% stake in Synergy Grid and Development, the firm that owns 40% of NGCP. The move was intended to inject more oversight and accountability into the grid operator and help ensure projects are completed as promised.
Over the years, several weaknesses of NGCP have been pointed out.
- Transmission delays leading to the Panay blackout
For years, NGCP has faced criticism for delays in completing key infrastructure projects most notably the Panay–Negros–Cebu interconnection, which was originally scheduled for completion in December 2020 but was only energized in April 2024. Lawmakers say these delays played a major role in the massive Panay Island blackout in early January 2024, arguing that the outage could have been prevented had the backbone project been ready on time.
- Questionable spending
From 2016 to 2022, regulators found that NGCP billed consumers billions in costs that went beyond power transmission. These included ₱2.4 billion for public relations and corporate social responsibility projects and ₱46.2 million in charitable donations. Authorities have since pressed the grid operator to justify why such spending should be shouldered by the public.
Scrutiny has also turned to NGCP’s payroll. Financial statements showed that salaries and benefits reached ₱20.9 billion from 2016 to 2020, making it one of the company’s largest expenses. With a workforce of about 4,700, this translated to an average of ₱4.4 million per employee annually—or roughly ₱371,000 each month—raising questions about compensation levels in a monopoly whose revenues ultimately come from electricity consumers.
Critics have questioned NGCP’s financial management, citing generous dividend payouts and unusual expenses. Lawmakers noted billions distributed to shareholders despite project delays, while Senator Risa Hontiveros flagged ₱8.7 billion spent on janitorial and security services from 2009 to 2022. These costs were passed on to consumers even as power supply issues persisted.
- Cost pass-throughs
In December 2024, ERC fined the grid operator ₱15.8 million for unjustified delays across 34 transmission projects. During hearings, officials from the National Transmission Corporation
(TransCo) revealed that NGCP had completed only 29% of its 258 targeted projects, with some delays exceeding nine years.
Additionally, the so-called “as-spent” recovery model allowed NGCP to pass costs onto consumers, even for uncompleted work, adding around ₱0.80 per kWh to transmission rates. Critics argue this penalizes consumers while shielded by regulatory loopholes.
- National security concerns
NGCP’s 40% ownership by China’s State Grid has fueled fears over national security. Lawmakers have warned of possible cyber risks and remote access to the country’s power backbone, pressing for a full audit. NGCP has denied these potential threats.
According to Bas Umali, national coordinator of Kuryente.org, the NGCP has been negligent in its mandate to secure reliable ancillary power and maintain a stable transmission system. He wrote, “Yet it has continued to charge all of consumers transmission charges for the service it has failed to deliver, for ancillary charges it has failed to contract, and for the electricity infrastructure it has not yet built.”
(Also read: MORE Power Secures 6.6 MW Solar Boost in New Renewable Deal)
Proving Its Worth
To regain public trust, NGCP must go beyond rate increases and deliver on reliability, speed, and accountability. Despite frequent hikes, the grid operator has repeatedly fallen short—its delayed projects and lack of transparency have frustrated both lawmakers and citizen groups.
Concretely, NGCP needs to accelerate stalled infrastructure projects and prove its service value. Critics argue that without visible improvements, rate hikes amount to paying for empty promises and failed delivery.
Ultimately, NGCP’s fate hinges on action, not words. For consumers, proof of NGCP’s worth won’t come from press releases or projections—but from lights that stay on, bills that stop climbing, and projects that finally get finished.
Sources:
https://pia.gov.ph/ngcp-to-raise-transmission-charges-by-13-centavos
https://www.philstar.com/business/2024/10/11/2391590/ngcp-transmission-rates-down-october-billing
https://www.pna.gov.ph/articles/1254246
https://powerphilippines.com/ngcp-cleared-to-begin-p28-b-cost-recovery-in-august-erc
https://www.ngcp.ph/article?cid=16979
https://opinion.inquirer.net/180534/burden-of-fixing-the-ngcp
https://mb.com.ph/2024/1/9/ngcp-project-delays-caused-massive-panay-blackout-solon-says
https://newsinfo.inquirer.net/1839983/risa-hits-questionable-pass-on-charges-of-ngcp
https://www.pna.gov.ph/articles/1242494