ELECTRIC CONSUMERS are always at the receiving end of power rate hikes, primarily attributed to a long list of alibis that could hardly be comprehended by the Filipino consumers.
Over the last seven months, distribution companies like Meralco imposed power rate hikes six times.
The commonly used justification — higher cost of electricity bought through the Wholesale Electricity Spot Market (WESM). Other “compelling reasons” include system losses, generation charge, distribution fees, oil price increases on account of either through increases of electric distribution rates, generation charge, fuel price hikes, deterioration of the peso and operational inefficiencies.
What’s more interesting is this — whenever a refund is made (usually very negligible) what comes next is a very substantial hike in electric bills that consumers can’t even feel the impact of the reimbursement from overcharges.
For the current month, we — the hapless consumers — were advised to brace for a 30 percent increase on account of transmission rate hike in July 2026 of 22.22% that will be billed to electric distributors (monopolistic Meralco) and to the provinces through the electric coops.
The National Grid Corporation of the Philippines – a consortium 60 percent owned by local groups including Monte Oro Grid Resources Corp. and Calaca High Power Corporation (associated with the Henry ‘Big Boy’ Sy and Coyiuto families), alongside the government’s Maharlika Investment Corp., with the remaining 40% held by the State Grid Corporation of China) — said the transmission rate for the July 2026 billing period to be billed by distribution utilities and electric cooperatives this month increased by 22.22% to P1.7560 per kilowatt-hour (kWh), up from the prior month’s P1.4367 per kWh.
The NGCP attributed the increase in the overall transmission charge due to “sharp increase” in ancillary services (AS) rates.
AS rates — pass-through costs for power supplied by power generators who provide ancillary services during supply-demand imbalance — increased by 30.85%, from P0.7941 per kWh in June to P1.0391 per kWh in the July billing period.
The grid operator clarified that it does not earn from AS and does not benefit from any change in AS prices, as these are remitted directly to generation companies with bilateral contracts with NGCP, and to the Independent Electricity Market Operator of the Philippines (IEMOP) for AS sourced from the Reserve Market.
Meanwhile, NGCP said its transmission wheeling rate, or the fee for delivering power through the transmission grid, also rose from P0.5044 per kWh in June to P0.5436 per kWh in July.
“As system operator, NGCP’s responsibility is to ensure grid stability and reliability, especially during periods of supply-demand imbalance. NGCP does not earn from Ancillary Service charges. These payments are remitted to the service providers that supply the reserves needed to keep the power system secure and reliable,” NGCP said.
Transmission charge seen on Meralco bills is for the cost of delivering electricity from power suppliers – usually located in other provinces or in remote areas outside of Meralco franchise area – to its distribution system, Meralco earlier said. This is paid to the NGCP, the transmission service provider.
Sovereign wealth fund, Maharlika Investment Corp.and Synergy Grid and Development Philippines Inc. acquired 20 percent stake in NGCP in January 2025 to give the government more influence over the country’s power grid operations.
The agreement signing was witnessed by President Ferdinand R. Marcos Jr. in Malacañang and was signed by MIC President/CEO Rafael Consing Jr. and SGP chairman Henry Sy Jr.
The deal will be MIC’s first investment since its inception in July 2023.
Under the deal, MIC will purchase preferred shares in SGP, granting the government a 20 percent stake in the company, which holds a significant 40.2 percent effective ownership in NGCP, the operator of the country’s power grid.
Consing noted that the deal will also provide the government with board seats in both SGP and NGCP. The government would have 2 out of 9 seats in SGP board, after the total seats are increased from seven to nine. At NGCP, the government gains representation through two out of 15 board seats, following an increase in the total seats from 10 to 15,” Consing explained.
The investment is seen as a crucial step for the government to regain control over the nation’s vital power infrastructure.
Since 2009, the NGCP has had full control over the management and operation of the country’s nationwide transmission system under a 25-year concession granted by Congress. The agreement allows for the possibility of a 25-year extension.
Consing emphasized that this investment is important for protecting the country’s power supply from external threats and ensuring that the government has a voice in key decisions made by the NGCP.
The National Transmission Corporation, a government agency created under the Electric Power Industry Reform Act of 2001, owns the country’s transmission assets, while the NGCP operates the grid itself.
Congress has yet to find a solution to the systems losses that are being charged to consumers, and now here comes another round of price hikes in our electricity bill. Hayzz a never-ending string of reasons to kill the consumers.