NGCP transmission rates up in July

Power consumers will have to pay more for transmission this month, due mainly to higher ancillary services rates, the National Grid Corporation of the Philippines said Monday.

According to the NGCP, it will charge P0.46 per kilowatt-hour (kWh) for the delivery of its services this month, largely due to higher ancillary service rates or the pass-through costs for power supplied by providers to stabilize the grid during power-supply imbalance.

This comes as the ancillary service rates in June grew by 9.32% to P0.6182 per kWh from P0.5655 per kWh, bringing the overall average transmission rates up 5.49% to P1.2113 per kWh from P1.1482 per kWh in the previous month.

The ancillary service costs for Visayas for June includes the sixth and last tranche of the settlement of the remaining 70% ancillary services from the reserve during the March 2024 billing period, which was deferred.

The NGCP clarified, however, that it does not earn from ancillary services and does not benefit from the movement in prices, as these are remitted directly to generating companies it has bilateral contracts with, and to the Independent Electricity Market Operator of the Philippines (IEMOP).

NGCP’s transmission wheeling rates, or charges of the NGCP for its primary service of delivering power, also increased 0.39% to P0.4611 per kWh in June.

The Manila Electric Company (Meralco) earlier announced a P0.4883-per-kilowatt-hour increase in its household rate this month, due to higher generation charges amid the increase in world fuel prices. This could translate to an increase of about P98 for typical customers consuming 200 kWh. —AOL, GMA Integrated News