Electricity consumers may see a slight increase in their April bills, as they pay higher transmission fees, just one component of the overall power rate.

At a media briefing on Wednesday, NGCP Head of Revenue Management Julius Ryan Datinggaling said the overall equivalent average transmission rate in March rose 4.26 percent to P1.7526 per kilowatt-hour (/kWh), from P1.6810/kWh in February.

Datinggaling said the increase was largely due to higher Ancillary Service (AS) rates, which climbed to P0.8516/kWh from P0.8275/kWh. These are pass-through costs for power supplied by generators during supply-demand imbalances.

NGCP reiterated that AS accounts for the bulk of transmission charges.

Meanwhile, transmission wheeling rates, or the cost of delivering electricity through the grid, also edged up to P0.7022/kWh from P0.6677/kWh.

“The increase in effective transmission wheeling rates has no impact on NGCP’s revenue, as the company’s allowable revenue is capped by the Energy Regulatory Commission (ERC),” he said.

NGCP, however, reiterated that it does not earn from ancillary service charges, as these are paid directly to power generators and the Independent Electricity Market Operator of the Philippines for reserve power sourced from the market. 

“As previously mentioned, the revenue of NGCP is being taxed by the ERC. Hence, the billing determinant, that is the demand for the energy, will dictate the corresponding transmission rate,” Datinggaling said. 

As system operator, NGCP is mandated to maintain grid stability during supply–demand imbalances. It does not profit from these charges, as they are passed on to service providers that ensure the continuous flow of electricity nationwide.