Transmission rates up in November billing

POWER CONSUMERS will be charged higher transmission rates in their electricity bills for November due to the increase in the cost of power reserves used to maintain reliable operations, the National Grid Corp. of the Philippines (NGCP) said.

In a briefing on Tuesday, Julius Ryan D. Datingaling, NGCP head of business and regulatory development, said overall transmission rates rose 7.91% to P1.5105 per kilowatt-hour (kWh).

“The increase in rates generally is due to the ancillary service (AS) reserve,” Mr. Datingaling said.

AS charges, or power reserves tapped by grid operators to support the transmission of power and to maintain reliable operations, increased 15.23% to P0.7542 per kWh. AS suppliers are under contract to provide standby power when required, entailing higher costs.

Meanwhile, transmission wheeling rates rose 0.57% to P0.5953 per kWh. These reflect the cost of delivering electricity from power generators to the distribution system.

NGCP reiterated that it does not earn from AS as these are remitted directly to generation companies with bilateral contracts with the company, and to the spot market operator for AS sourced from the reserve market.

“The increase in effective transmission wheeling rates has no effect on NGCP’s revenue as its income is cap-limited by the Energy Regulatory Commission,” NGCP Assistant Vice-President Cynthia P. Alabanza said.

The NGCP officially started operations as a power transmission service provider in 2009. — Sheldeen Joy Talavera