Power consumers may see higher electricity bills this August as transmission rates rise due largely to a sharp increase in ancillary service (AS) charges.
The AS rate jumped 30.85%, from P0.7941/kWh in June to P1.0391/kWh in July, according to the National Grid Corporation of the Philippines (NGCP).
Meanwhile, the transmission wheeling rate slightly increased from P0.5044/kWh to P0.5436/kWh.
As a result, the equivalent average transmission rate for distribution utilities and electric cooperatives rose 22.22% to P1.7560/kWh for the July billing period, which will be reflected in consumers’ August electricity bills.
NGCP stressed that it does not earn from ancillary service charges. The payments are remitted directly to generation companies providing ancillary services and to the Independent Electricity Market Operator of the Philippines (IEMOP) for reserves sourced from the Reserve Market.
“As System Operator, NGCP’s responsibility is to ensure grid stability and reliability, especially during periods of supply-demand imbalance,” the grid operator said.
NGCP added that ancillary service charges account for the bulk of the overall transmission rate and are intended to support the reliability and security of the power system.IMT
