NGCP keeps low rates amid public worries about rising power costs

Insider Spotlight:

• NGCP says it accounts for only 2.98 percent of power bills.
• Transmission charge is Php 0.52/kWh—lower than pre-2009 rates.
• Power outages down by over 84 percent since privatization.
• Grid capacity doubled; over 40,000 circuit km added since 2009.
• ERC oversight intensifies amid pricing concerns.

The National Grid Corporation of the Philippines (NGCP) has asserted that its transmission charges represent just 2.98 percent of a typical consumer’s electricity bill, amid ongoing scrutiny of power costs and regulatory oversight.

In an infographic released on Monday, June 30, 2025, the operator of the country’s power transmission system broke down the components of a May 2025 electric bill, with generation (50.21 percent) and distribution (21.98 percent) making up the lion’s share of costs. 

Transmission charges under NGCP accounted for 0.52 pesos per kilowatt-hour—lower than the 0.74 pesos per kWh charged before privatization in 2009.

The grid operator emphasized improvements in service reliability, noting that power interruptions have declined by 84.57 percent since it assumed control of the national transmission system in 2009.

This is seen as a key metric in defending its role amid recurring calls for performance reviews and regulatory reforms.

The statement also highlighted infrastructure investments. Since 2009, NGCP said it has constructed or upgraded 40,495 circuit kilometers of transmission lines and 5,475 megavolt amperes (MVA) of substation capacity. It added that transmission line length rose by 1,357 km since privatization, while generation capacity accommodated by the grid more than doubled to 24,537 megawatts (MW) as of 2024.

“NGCP has transformed the country’s transmission network with major investments totaling hundreds of billions of pesos,” the company’s vice chair Henry Sy Jr. said in a message relayed to InsiderPH. “We've nearly doubled the grid’s capacity to receive and deliver power — and there’s still available room to accommodate more.”

Henry Sy Jr.

NGCP's vice chair stressed that transmission charges account for less than 3% of consumers' total power bill.

“Even with these upgrades, our rates have gone down,” he added. “Today, NGCP’s share in your electricity bill is less than 3 percent.”

NGCP highlighted its cost efficiency and infrastructure improvements concerns over high electricity prices and calls for stronger oversight. The Energy Regulatory Commission recently launched reviews of transmission projects and pricing mechanisms, citing public interest.

NGCP, a privately owned consortium operating under a 25-year franchise, continues to face scrutiny over delayed projects and its role in national energy security.

— Edited by Daxim L. Lucas