Filipino consumers should prepare for a modest uptick in their electricity expenses for November 2025. The National Grid Corp. of the Philippines (NGCP) has announced that higher costs for Ancillary Services (AS) are the primary reason for this adjustment.
What Are Ancillary Services and Why Did Costs Increase?
Ancillary Services are vital support functions in the power grid. They ensure stability and reliability, especially when there is an imbalance between electricity supply and consumer demand. These services act as a backup to prevent blackouts and maintain a consistent flow of power.
The cost for these essential services saw a significant jump. In September, the rate was P0.65 per kilowatt-hour (kWh). By October, this had increased to P0.75 per kWh, marking a 15 percent rise. The NGCP was quick to clarify its role in this charge, emphasizing that it does not profit from these payments. The funds collected are passed directly to the power generators or the electricity market operator that provides the ancillary support.
Transmission Charge and Overall Impact
In contrast to the ancillary services charge, the fee for using NGCP's transmission lines saw a minimal change. It increased by less than one percent, moving from P0.592 per kWh to P0.595 per kWh. The NGCP further explained that this slight adjustment does not contribute to its revenue, as its income from transmission is capped by government regulators.
When combined, the overall average transmission cost that distribution utilities charge their customers rose from P1.40 per kWh in September to P1.51 per kWh in October. This represents a 7.9 percent overall increase in this component of the electricity bill.
What This Means for Power Users
This announcement means that households and businesses classified as power users will see the effect of these higher costs reflected in their November billing statements. While the increase is described as small, it adds to the overall cost of living and doing business. Understanding the breakdown of your electricity bill can help you see how charges for grid stability and transmission directly impact your monthly expenses.
