Consumers may face higher electricity rates next month as the National Grid Corporation of the Philippines (NGCP) starts recovering the remaining deferred payments for contracted ancillary services.
In a GMA News Online article, the Energy Regulatory Commission (ERC) said it had previously approved the recovery of Php 3.05 billion in unpaid charges for power reserves, with collections staggered across February and March 2024.
In a statement released by the Commission, it was noted that higher charges were recorded for the December 2024 billing period, reflecting increases in both transmission wheeling and Ancillary Services (AS) rates. AS rates rose by 4%, reaching Php 0.5928/kWh compared to Php 0.5699/kWh in November.
Moreover, transmission wheeling rates increased to Php 0.5315/kWh from Php 0.4957/kWh, driving overall transmission charges to Php 1.2584/kWh in December, up from Php 1.1966/kWh the previous month. These adjustments signal additional costs for electricity consumers nationwide.
“Of the overall transmission charge, only 53 centavos is charged by NGCP for the delivery of its services to power consumers. This month’s transmission charge is still comprised mainly of AS charges remitted directly to power generators providing ancillary services to the grid,” said NGCP.
The remaining Php 3.05 billion collection will be spread over three months for Luzon and Visayas, while Mindanao customers will see the increase over six months.
The ERC estimates the additional cost will impact Luzon and Visayas consumers by Php 0.124 per kilowatt-hour (kWh) and Mindanao consumers by Php 0.033 per kWh.
A partial suspension of these payments was lifted in May 2024, allowing generators to recover Php 1.7 billion. The deferral stemmed from a suspension of the power reserve market, which initially caused a spike in electricity rates earlier this year.
However, NGCP’s head of Revenue Management Julius Ryan Datinggaling confirmed that these remaining deferred payments would appear in consumers’ next billing cycles.
Ancillary services, which ensure grid stability during power generation or transmission issues, are included in electricity bills as AS charges.
“AS are support services used to balance and stabilize the grid during power supply-demand imbalance,” said NGCP.
In other developments, concerns over State Grid Corporation of China’s 40% ownership in NGCP were addressed during a press briefing. NGCP spokesperson Cynthia Alabanza clarified that the corporation complies with constitutional limits on foreign ownership of public utilities, with Filipino shareholders holding the remaining 60%.
The NGCP consortium includes Monte Oro Grid Resources Corporation, Calaca High Power Corporation, and the State Grid Corporation of China. Filipino shareholders, led by Henry Sy Jr. and Robert Coyiuto Jr., retain majority control.
As electricity bills rise, understanding ancillary service charges and grid operations can help consumers make informed decisions about their energy usage. Stay updated by engaging with Power Philippines.
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