Transmission charges on May electricity bills are set to decline after the National Grid Corporation of the Philippines (NGCP) reported lower transmission rates for the April billing period.
In a statement on Wednesday, NGCP said the overall average transmission rate dropped 8.8 percent to P1.5983 per kilowatt-hour (kWh), from P1.7526/kWh in March, driven by lower transmission wheeling and ancillary services (AS) charges.
The reduction will be reflected in electricity bills nationwide, as distribution utilities — including Manila Electric Co. and electric cooperatives — pass on NGCP transmission charges to consumers.
Transmission wheeling rates, or the fees NGCP charges for delivering electricity through the power grid, declined 14.16 percent to P0.6028/kWh from P0.7022/kWh in the previous billing cycle.
Meanwhile, ancillary services charges, which cover reserve power tapped to stabilize the grid during supply-demand imbalances, fell 5.02 percent to P0.8088/kWh from P0.8516/kWh in March.
“For the May electric bill of the end consumers, NGCP charges only 60 centavos per kWh for the delivery of its services,” NGCP said.
The grid operator noted, however, that ancillary services continue to account for the bulk of transmission-related charges passed on to consumers.
“NGCP does not earn from AS rates, as these are remitted directly to generating companies, and it does not benefit from any movement in their prices,” it added.
Transmission wheeling charges represent the cost of using NGCP’s transmission network to deliver electricity from power plants to distribution utilities, while ancillary services are procured to maintain grid stability and ensure a reliable power supply during fluctuations in demand and supply.