Ancillary Service Charge FAQ
1. What is the Ancillary Service Charge?
The Ancillary Service Charge is the cost of Ancillary Services (AS) which are services necessary to support the transmission of capacity and energy from resources to loads, while maintaining reliable operation of the transmission system.
2. Why are customers charged an Ancillary Service Charge? Does this go to Meralco?
Customers are billed Ancillary Service Charge to cover the cost of ancillary services procured by the National Grid Corporation of the Philippines (NGCP). This is a pass-through charge that is paid to NGCP by distribution utilities (DUs), and collected from its customers, in accordance with ERC rules. Meralco only acts as collecting agent of the Ancillary Service Charge for NGCP.
3. What changes can I expect in my bill regarding the Ancillary Service Charge? Where can I find this in my bill?
Previously, the cost of Ancillary Services forms part of the Transmission Charge. Beginning August 2026, it will be shown as a separate line-item as “Ancillary Service Charge” in compliance to the ERC resolution, separate from the Transmission Charge which will cover the other transmission costs of NGCP (e.g. costs associated for conveying electricity from power plants to Meralco).
Back of Bill
4. Will the separation of the Ancillary Service Charge from the Transmission Charge impact my bill?
No. Presenting the Ancillary Service Charge as a separate line item will not, by itself, increase your total electricity bill. It is not a new or additional charge, but a representation of an existing transmission-related cost previously included under the Transmission Charge.
5. Will the Ancillary Service Charge change every month?
Yes, the Ancillary Service Charge will be adjusted every month to reflect the monthly ancillary service costs from National Grid Corporation of the Philippines (NGCP), in accordance with the ERC Resolution.
6. How will this change affect how I read my bill?
With the separation of Ancillary Service Charge, you can now see which portion of your bill will go to generation facilities who provided Ancillary Services, as procured by the NGCP.
7. Will this change take effect? Is it permanent?
Yes, the separation of Ancillary Service Charge will be in effect unless directed by ERC otherwise.
8. Who determines the Ancillary Service Charge?
The monthly Ancillary Service Charge is determined by the Distribution Utilities, such as Meralco, in accordance with the formula in the ERC Resolution, based on the costs for the ancillary services procured by the NGCP, whether through Ancillary Service Procurement Agreements (ASPAs) or from the Reserve Market.
9. Can I reduce the Ancillary Service Charge in my bill?
The Ancillary Service Charge rate is applied to your consumption. So, the Ancillary Service Charge amount in the electricity bill may be reduced if the consumption is reduced.