The transmission component of electricity bills has gone up due to a sharp increase in ancillary service (AS) rates, according to the National Grid Corporation of the Philippines (NGCP).
AS rates-pass-through costs for power supplied by power generators who provide ancillary services during supply-demand imbalance-jumped by 30.85 percent to P1.0391 per kilowatt hour (kWh) in the July billing period from P0.7941 per kWh in June. This is reflected in the August electric bills of consumers.
NGCP said it does not earn from AS and does not benefit from any change in AS prices, as these are remitted directly to generation companies with bilateral contracts with NGCP and to the Independent Electricity Market Operator of the Philippines (IEMOP) for AS sourced from the Reserve Market (RM).
Meanwhile, NGCP’s transmission wheeling rate, or the fee for delivering power through the transmission grid inched up to P0.5436/kWh in July from P0.5044/kWh in June.
Overall, the equivalent average transmission rate for distribution utilities (DUs) and electric cooperatives (ECs) for the July billing period they will charge to consumers this August went up by 22.22 percent to P1.7560/kWh, from June’s P1.4367/kWh.
NGCP reiterates that bulk of the overall transmission rate is attributable to charges for AS.
‘As system operator, NGCP’s responsibility is to ensure grid stability and reliability, especially during periods of supply-demand imbalance. NGCP does not earn from Ancillary Service charges. These payments are remitted to the service providers that supply the reserves needed to keep the power system secure and reliable.’
NGCP holds the sole and exclusive concession and franchise for the operation of the country’s power transmission network, which links power generators and distribution utilities to deliver electricity nationwide. Synergy Grid and Development Philippines Inc., a consortium led by tycoons Henry Sy Jr. and Robert Coyiuto Jr., controls 60 percent of NGCP while State Grid Corp. of China owns the remaining 40 percent.
It announced last month that it is on track to complete 10 projects worth P30.88 billion this year. If successful, these additions will bring the company’s total completed projects for the year to 15, with a combined value of approximately P38 billion.
The projects that are up for completion in the second half of the year are the relocation of steel poles along Hermosa-Duhat 230 kilovolt (kv) transmission line, Nabas-Caticlan-Boracay transmission line, Luzon voltage improvement project-3, New Antipolo 230-kV substation, North Luzon substation upgrading project 1, Tuguegarao-Lal-lo 230-kV transmission line, Amlan-Dumaguete 138-kV transmission line, Panay-Guimaras 138-kV interconnection, Mindanao substation expansion 4, and Nasipit substation bus-in project. These projects are valued at P30.887 billion.