NGCP announces higher transmission rate

Power consumers across Luzon, Visayas, and Mindanao grids should brace for higher transmission charges to be reflected in their electricity bills this month.

In an advisory on Wednesday, the National Grid Corporation of the Philippines (NGCP) announced that its overall transmission rate increased by 7.09% to P1.4171 per kilowatt-hour (kWh) from P1.3233 per kWh month-on-month.

The hike was on the back of increases in both the ancillary services (AS) rate and the transmission wheeling rate.

The AS charge, in particular, rose by P0.078 per kWh from P0.5872 per kWh to P0.6659 per kWh month-on-month.

The NGCP said the AS charge is a pass-through cost for power supplied by AS providers with bilateral contracts with NGCP and from the reserve market to stabilize the grid during power supply-demand imbalances.

AS serves as an available generation capacity for dispatch for contingency in case transmission or power generation problems occur.

It forms part of the total electricity bill as an AS charge, which covers the expenses for grid stability and reliability, and is directly remitted to generating companies by the NGCP.

The NGCP said it does not earn from AS and does not benefit from changes in AS prices.

Meanwhile, the grid operator said its transmission wheeling rate, or the fee it charges for delivering power through its grid, increased by P0.0047 per kWh from P0.5923 per kWh to P0.5970 per kWh month-on-month.

The NGCP said that of the overall transmission service rate, it only charges power consumers P0.5970 per kWh for its service, “while AS remains the biggest component of transmission-related costs.” —VBL, GMA Integrated News