The National Grid Corporation of the Philippines (NGCP) clarifies that while transmission wheeling rates have decreased by 5.5%, the increase in the transmission component of the September electricity bill is due to higher Ancillary Services (AS) costs from the resumption of the AS Reserve Market.
“NGCP clarifies that while consumers may notice an increase in transmission charges, this is a result of the resumption of the AS Reserve Market. In compliance with directives from the Department of Energy and the Energy Regulatory Commission, NGCP contracts 50% of its AS requirement from firm agreements and 50% from the AS Reserve Market,” said the grid operator in a statement.
NGCP’s transmission wheeling rates saw a 5.5% decline, reducing the cost from Php 0.5038 per kilowatt-hour (kWh) in July to Php 0.4761 per kWh in August, offering savings for power consumers.
Meanwhile, AS rates for the August 2024 billing period surged by 125.92%, rising to Php 0.6127 per kWh from Php 0.2712 per kWh in July. This increase reflects the cost of AS sourced from the reserve market, which resumed on August 5, excluding the settlement of the remaining 70% AS cost from the March 2024 billing period.
On May 9 of this year, the Energy Regulatory Commission (ERC) authorized the temporary cessation of the suspension on settlement amounts in the AS reserve market and granted the 30% Partial Settlement for the March 2024 billing period to offset the increase in the AS charge.
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