Higher power rates loom in August

Consumers may see higher electricity bills beginning August after the Energy Regulatory Commission (ERC) authorized the National Grid Corporation of the Philippines (NGCP) to start collecting roughly ₱63.45 billion as part of its approved revenues.

In a statement, the ERC said it granted NGCP an annual revenue requirement of ₱374.98 billion for the fifth regulatory period covering 2023 to 2027—lower than the ₱442.60 billion sought by the grid operator.

In its January 30 ruling, the commission directed NGCP to implement the maximum allowable revenue for regulatory year 2023 amounting to ₱63,449,702,720 beginning August 1, 2026, “until otherwise directed.”

ERC officials explained that the adjustment would translate to an additional ₱0.06 per kilowatt-hour (kWh) in transmission charges, to be reflected starting in the August billing cycle and remaining in effect until the approved amount is fully recovered.

NGCP officials were not immediately available for comment.

The ERC said it trimmed the company’s proposed capital expenditures by 17 percent and denied its bid to recover certain real property taxes from consumers.

The regulator maintained that the ruling “strikes a balance between ensuring adequate funding for critical power infrastructure and safeguarding consumers from excessive transmission charges.”

“Only costs and investments that passed regulatory scrutiny were included in the approved revenue cap,” it added.