NGCP Transmission Rates Rise 9.25% in August After ERC Approval of MAR, Under-Recovery

**** by: Edjun Mariposque

****

August 13, 2025

2–4 minutes

The National Grid Corporation of the Philippines (NGCP) has implemented higher transmission rates this August 2025, following the Energy Regulatory Commission’s (ERC) approval of its Maximum Allowable Revenue (MAR) adjustment and recovery of under-collections from 2016 to 2022.

From PhP0.4611/kWh in June 2025 billing, transmission rates increased to PhP0.5923/kWh in July, or an additional PhP0.1312/kWh. Ancillary services rates, however, decreased from PhP0.6182/kWh in June to PhP0.5872/kWh in July, a drop of PhP0.0310/kWh.

Overall, average transmission rates rose to PhP1.3233/kWh for the July billing period — up 9.25% from June’s PhP1.2113/kWh — and will be reflected in consumer electric bills this month through distribution utilities.

The ERC-approved under-recovery rate of PhP0.0384/kWh will be collected over 84 months until the PhP28 billion total is recovered. NGCP was also granted recovery of a MAR increase from PhP51.47 billion to PhP58.10 billion, equivalent to an added PhP0.0629/kWh.

These adjustments are part of NGCP’s Fourth Regulatory Period Reset, covering 2016 to 2022. The ERC last conducted a reset more than a decade ago, for the period 2010 to 2015.

According to NGCP, the approved rate adjustments will help finance ongoing projects to strengthen the country’s power grid.

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