Eastern visayas: The National Grid Corporation of the Philippines (NGCP) has expressed support for a Senate resolution that seeks to investigate the rising electricity rates and consumer complaints regarding "bill shock." The NGCP believes this probe could address enduring issues within the power sector. According to Philippines News Agency, NGCP spokesperson Cynthia Alabanza highlighted the significance of the inquiry, stating that it would unite key stakeholders in the power industry to scrutinize the causes of escalating electricity costs. "The Senate inquiry will help identify multilateral solutions to the problem involving power generation companies, the transmission sector, and distribution utilities. I believe the Department of Energy is doing its best to address this," Alabanza remarked during a briefing in Eastern Visayas. Sen. Panfilo Lacson initiated the investigation with Senate Resolution No. 511 on July 14. The resolution directs the Senate committee to examine if current regulations sufficien tly protect consumers from excessive and unreasonable electricity charges. Lacson also pointed to complaints regarding irregularities in meter readings and system loss charges, which include losses due to meter tampering, illegal connections, and jumpers. He emphasized that these losses are ultimately borne by legitimate consumers, raising questions about the adequacy of incentives for power distribution utilities to reduce electricity pilferage and enhance operational efficiency. The resolution aims to reinforce transparency, accountability, and consumer protection within the power sector. Alabanza noted that the largest portion of consumers' electricity bills is allocated to power generation companies. For the June 2026 billing period, generation charges accounted for approximately 54.84 percent of the bill, with 18.27 percent going to distribution utilities, 4.41 percent to ancillary services, and 19.23 percent to other charges, including taxes and lifeline subsidies. NGCP's transmission charges constitut ed only 3.25 percent of the June 2026 electricity bill. NGCP operates the country's state-owned power grid under a 50-year concession granted by the government, having assumed transmission operations and related facilities nationwide in 2009. Alabanza clarified, "Only a minimal amount goes to NGCP since we operate under a revenue cap. We only collect what the Energy Regulatory Commission allows." Higher electricity rates have also been attributed to the temporary shutdown of several power plants, which has compelled electric cooperatives to procure more expensive electricity from the Wholesale Electricity Spot Market (WESM). Electric cooperatives in Eastern Visayas reported that the spike in WESM prices was due to the temporary shutdown of power plants, constrained power supply in the Visayas grid, and sustained high electricity demand, resulting in several yellow and red alert declarations and increased electricity prices in the spot market. Preliminary billing statements from the Independent Electricity Market Operator of the Philippines, the WESM operator, show that the latest billings for 11 electric cooperatives in Eastern Visayas amounted to PHP1.187 billion. Nearly 48 percent of this, or PHP573.53 million, was attributed to Line Loss and Congestion Charges (LLCC). Consequently, a small household with a monthly consumption of 51 kilowatt-hours will face an additional PHP205 on their July 2026 bill due to the LLCC increase.
