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Transmission Rates Decrease for August 2026 Billing Period

San juan city: Transmission rates in the country generally went down for the August 2026 billing period due partly to the drop in ancillary rates, an official of the National Grid Corp. of the Philippines (NGCP) said Thursday. In a briefing, NGCP Revenue Management and Business and Regulatory Development head Julius Ryan Datingaling announced that transmission rates declined by PHP1.5225 per kilowatt-hour (kWh), largely due to the 13.3 percent drop in the overall transmission rate, or by PHP0.2335/kWh. Ancillary service rates decreased by PHP0.2329/kWh, and other charges by PHP0.0224/kWh.

According to Philippines News Agency, NGCP spokesperson lawyer Cynthia Alabanza expressed hope that power plants experiencing forced outages would continue to resume operations to boost capacity and eliminate alerts. The grid operator reported a reduction in red alerts for the Visayas, with only a yellow alert from 5 p.m. to 7 p.m., due partly to the resumption of Therma Visayas, Inc. Unit 2's operation. Alabanza stated, "Kung wala nang karagdagang plantang pumalya, kung hindi biglaang sumirit ang konsumo at matuloy na bumalik yung mga plantang kasalukuyang nakatirik, tuloy-tuloy na dapat ito hanggang sa katapusan ng taon," indicating optimism for a steady improvement until the year's end.

NGCP data shows that 40 red alerts were recorded in the Visayas this year alone due to supply issues, while eight were logged in Mindanao and none for Luzon. Additionally, 105 yellow alerts were recorded in the Visayas, 18 in Mindanao, and one in Luzon. In contrast, 2025 saw no red alerts in any grids but did register seven yellow alerts in the Visayas and one each in Luzon and Mindanao.

The NGCP issues a yellow alert when a grid's capacity falls short of the contingency requirement, while a red alert is declared when supply is insufficient to meet demand and regulatory requirements. The Department of Energy (DOE) has directed the NGCP to employ ancillary services, such as battery facilities, to bolster supply, especially during peak hours. Alabanza noted that several players accredited by the DOE have been engaged, and their equipment is currently under assessment and testing. The utilization of these facilities depends on the testing results and approval by the Energy Regulatory Commission.

Alabanza emphasized that grid alerts should be approached holistically, pointing out that the current low capacity is not due to transmission issues. She explained that NGCP facilities operate with the available supply, underscoring the need to evaluate the energy mix, sources, and distribution system capacity. "You don't put your eggs in one basket. So, there is no single solution to this," she added.