Transmission operator National Grid Corp. of the Philippines (NGCP) said Thursday power consumers can expect a decrease in overall transmission charges in the electric power bills this month.
NGCP said that while transmission wheeling rates, or charges for its primary service of delivering power slightly increased, ancillary services (AS) rates for the September billing period decreased, with P0.5680 per kilowatt-hour compared to P0.6127 per kWh in July.
Ancillary service charges refer to the cost for AS sourced from the AS reserve market and those for AS providers with bilateral contracts with NGCP.
The reserve market started commercial operations on Jan. 26, 2024, allowing merchant AS providers to be alternative source of AS.
The merchant AS providers are the generators certified by NGCP as qualified to provide ancillary services, and do not have ASPA with NGCP.
“Of the overall transmission charge, only 49 centavos is charged by NGCP for the delivery of its services to power consumers. This month’s transmission charge is comprised mainly of AS charges remitted directly to power generators providing ancillary services to the grid,” NGCP said in a statement.
NGCP said it does not earn from AS nor benefit from the increase in prices.
The AS cost is a pass-through cost, and generating companies benefitted from this increase. AS are support services used to balance and stabilize the grid during power supply-demand imbalance.
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