NGCP cuts transmission rates by 28.45%, leading to cheaper electricity bills

Consumers in Luzon, Visayas, and Mindanao can expect lower electricity bills this month as the National Grid Corporation of the Philippines (NGCP) announced a significant reduction in its transmission rates.

At a press conference, NGCP's head of Revenue Management, Julius Ryan Datinggaling, revealed that the overall transmission rate has decreased by 28.45% to P1.0904 per kilowatt-hour from P1.5240 per kWh.

The reduction is attributed to improvements in grid conditions due to lower demand and cooler weather, leading to decreases in both wheeling rates and ancillary services (AS) rates.

Specifically, the wheeling rate dropped by 16.35% to P0.4605 per kWh from P0.5505 per kWh, while the AS rate fell by 36.07% to P0.5175 per kWh from P0.809 per kWh.

Datinggaling clarified that for May's electric bill, NGCP will charge only 46 centavos per kWh for delivery service, with ancillary services making up the majority of transmission costs.

As a result, Manila Electric Co. (Meralco) is reducing its household rate by 75 centavos per kWh due to lower generation and transmission charges.