The National Grid Corporation of the Philippines (NGCP) is urging the country's energy regulators to approve the unbundling of transmission charges on electricity bills. The grid operator argues this step is crucial for improving cost transparency, helping consumers distinguish between pass-through fees and the company's own service charges.
Breaking Down the Bill: Wheeling vs. Pass-Through Costs
NGCP explained that the current transmission charge on power bills combines several components. The core fee is the transmission wheeling charge, which covers the cost of delivering electricity through the national grid. Intertwined with this are pass-through costs like Ancillary Services (AS) charges and the Feed-in Tariff Allowance (Fit-All).
AS charges are payments made to power generators that provide reserve capacity to balance sudden supply and demand shifts. NGCP emphasizes that these costs do not accrue to the company; they are fully collected and passed on to AS providers as mandated by regulation. The Fit-All, meanwhile, is a charge applied to support renewable energy developers and is remitted to the state-owned National Transmission Corporation (TransCo).
The Drive for Clarity Amid Fluctuating Rates
The push for unbundling comes as transmission rates have seen notable monthly movements, largely influenced by AS costs. NGCP reported that for the November 2025 billing period, the average transmission rate decreased to P1.3547 per kilowatt-hour from P1.5105 in October.
The company attributes recent volatility to the shift to all-firm AS contracts and the launch of the Ancillary Services Reserve Market. "Over the past year, AS rates formed the bulk of transmission charges," NGCP stated, highlighting how these external costs significantly impact the final amount consumers see each month.
Expected Impact on Consumers and Policymakers
By separating these items, NGCP believes consumers will gain a clearer understanding of what drives their electricity expenses. "It is only proper that these be clearly separated," the company said. This transparency would allow households to see exactly how much they are paying for the physical delivery of power versus mandatory pass-through fees that NGCP merely administers.
Furthermore, the move would aid policymakers and regulators in making more informed assessments of the energy sector's cost structure. The unbundling would definitively show which portions of the bill are subject to market fluctuations for ancillary services and which represent the fixed cost of using the grid infrastructure.
NGCP's proposal underscores a growing call for detailed breakdowns in utility billing, empowering Filipino electricity users with the knowledge to parse their consumption costs effectively.
