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Transmission rates rise slightly as power reserve costs increase

ELECTRICITY CONSUMERS can expect a slight increase in transmission rates, reflecting the rise in the cost of reserve power, according to the National Grid Corp. of the Philippines (NGCP).
Julius Ryan D. Datingaling, NGCP head of business and regulatory development, said the overall transmission rate increased by 0.77% to P1.4604 per kilowatt-hour (kWh) in June billing period.
“The AS (ancillary services) cost and the energy consumption for all the grids have increased,” Mr. Datingaling said in a briefing on Wednesday.
AS charges, or power reserves deployed by grid operators to support the transmission of power and to maintain reliable operations, increased 10.18% month on month to P0.7955 per kWh in June.
Transmission wheeling rates declined 9.79% month on month to P0.5058 per kWh in June. These reflect the cost of delivering electricity from power generators to the distribution system.
Rates rose 1.07% on Luzon and 1.33% in Mindanao, while rates decreased 1.19% in the Visayas.
“As the system operator, NGCP’s priority is to ensure the grid remains resilient during supply-demand imbalances. NGCP does not profit from AS charges, as these are remitted directly to the providers who help us maintain the continuous flow of electricity across the country,” the company said.
Amid the reoccurring yellow alerts in the Visayas, NGCP Spokesperson Cynthia P. Alabanza said its services are heavily dependent on power reserves delivered by suppliers.
“NGCP really can’t do anything… But as you can see, we are also customers of the power plants that provide electricity. They are the same power plants that provide ancillary services,” Ms. Alabanza said.
“So when these power plants go out, there’s a very big likelihood that the suppliers of NGCP for ancillary services are also affected,” she added. — Sheldeen Joy Talavera

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