ERC approves P28B rate hike, increases transmission charges by P0.10 per kWh

Electricity consumers in the Philippines will face higher bills after the Energy Regulatory Commission (ERC) completed the fourth regulatory period rate reset for National Grid Corporation of the Philippines (NGCP), allowing the grid operator to recover nearly P30 billion in under-recoveries.

The ERC finalized its deliberations on NGCP's 4th RP spanning from 2016 to 2022, adopting a Maximum Allowable Revenue (MAR) of P335.78 billion and a Weighted Average Cost of Capital (WACC) of 11.33%.

The commission allowed NGCP to recover an additional P28.29 billion in under-recoveries during a special meeting on April 11, 2025, resulting in an average increase of P0.1013 per kilowatt-hour (kWh) in transmission charges for consumers.

The ruling will take effect over the next seven years and covers both the basic transmission charge increase of P0.0629 per kWh and an additional P0.0384 per kWh corresponding to under-recovered portions of the increased MAR.

ERC Chairperson Monalisa Dimalanta and Commissioner Catherine Maceda dissented from the majority's resolution, citing concerns with the 'As spent' approach used in setting NGCP’s recovery period.