The National Grid Corporation of the Philippines (NGCP) on Thursday attributed the increase in transmission charges pushing power prices in Metro Manila higher this month to ancillary service (AS) charges at the Reserve Market (AS-RM).
In a statement, the NGCP said the transmission wheeling rate or what the company charges for delivering power, has gone down 5.5 percent to P0.4761 per kilowatt-hour in August this year from P0.5038 per kWh the previous July.
The NGCP said the ancillary service rate in the August billing period increased by 125.92 percent to P0.6127 per kWh compared to only P0.2712 per kWh in July.
The AS represents available reserve power for quick dispatch in meeting contingies such as when a generation unit trips or a transmission interconnection problem occurs.
The AS rate is the cost sourced from the AS-RM which resumed last August. The charge does not include the settlement of the remaining 70 percent in AS cost under the March 2024 billing period prior to its temporary suspension.
The previous May, the Energy Regulatory Commission (ERC) ordered the partial lifting of the suspension in the AS-RM and approved the 30 percent partial settlement for the March 2024 billing period.
“The NGCP clarifies that while consumers may notice an increase in transmission charges, this is a result of the resumption of the AS Reserve Market,” the company said.
In compliance with Department of Energy and the ERC directives, the NGCP contracts 50 percent of its AS requirement from firm agreements and the other 50 percent from the AS-RM.
