The lower transmission charges, coupled with the expected cut in spot market prices, are expected to cushion the overall electric power bills of consumers this month. 

While transmission wheeling rates—the charges the National Grid Corp. of the Philippines (NGCP) imposes for delivering power—have slightly increased, ancillary service (AS) rates for September have decreased.

The AS rate stands at P0.5680 per kilowatt-hour (kWh), down from P0.6127 per kWh in August.

As a result, this will be reflected in the transmission charges for the October billing.

Ancillary service charges cover the cost of services sourced from the AS Reserve Market and providers with bilateral contracts with NGCP. 

These services help balance and stabilize the grid during power supply and demand imbalances.

“Of the overall transmission charge, only 49 centavos is charged by NGCP for the delivery of its services to power consumers. This month's transmission charge is comprised mainly of AS charges remitted directly to power generators providing ancillary services to the grid,” NGCP said. 

NGCP also clarified that it does not earn from ancillary services and has not benefitted from the increase in AS prices. 

The AS cost is a pass-through charge, meaning generating companies receive the payments from these rates.

The Manila Electric Co. (Meralco) is set to announce the official power rates this month. 

Meralco Vice President and Head of Corporate Communications Joe R. Zaldarriaga said early this week that initial indications for the October billing suggest a potential reduction in electricity rates.

He said the reduced charges in the Wholesale Electricity Spot Market due to lower demand are expected to break the power rates hike that customers endured in the past three months.