THE National Grid Corp. of the Philippines (NGCP) said it is taking a “wait-and-see” approach to the fifth rate reset round as it has yet to receive a final copy of the regulator’s review of the fourth regulatory period (4RP).
“The fifth regulatory period is delayed. It has been filed with the ERC (Energy Regulatory Commission), and we await that,” NGCP Spokesperson Cynthia P. Alabanza said in a briefing on Wednesday.
“Then, perhaps after that regulatory period, for the sixth, perhaps we can start considering it as forward-looking. But we do plan to make the appropriate filings for the sixth regulatory period which will begin in 2028,” she added.
Last month, the ERC said that it has completed the deliberations on NGCP’s 4RP, covering the 2016 to 2022 period.
However, Ms. Alabanza said that the grid operator has only received a notice of the decision and not the official copy.
“We need to assess the issuance as a whole to be able to see whether that will be supportive of the infrastructure requirements of the country or not,” Ms. Alabanza said.
Hearings are ongoing for the 5RP, covering 2023-2027, she said.
Under the Electric Power Industry Reform Act, the ERC is tasked with establishing a methodology for setting transmission and distribution wheeling rates. The rates must be set in a way that allows the recovery of “just and reasonable costs and a reasonable return on rate base” to enable the entity to operate viably.
The rate reset process is usually a forward-looking exercise that requires the regulated entity to submit forecast expenditures and proposed projects over a five-year regulatory period. The ERC assesses the actual performance of the entity and adjusts rates as needed.
Julius Ryan D. Datingaling, head of business and regulatory development at NGCP, said average transmission rates declined 28.45% to P1.0904 per kilowatt-hour (kWh).
Ancillary services charges decreased 36.07% to P0.5175 per kWh, while transmission wheeling rates — what NGCP charges — fell 16.35% to P0.4605 per kWh.
“For the May 2025 electric bill of the end consumers, NGCP charges only 46 centavos per kWh for the delivery of its services,” Mr. Datingaling said. — Sheldeen Joy Talavera