Electricity transmission charges rise due to ancillary services cost increase

The National Grid Corporation of the Philippines (NGCP) announced on Wednesday that transmission charges for electricity consumers across the country have increased this month.

Despite a decline in the wheeling rate to P0.5252 per kilowatt-hour from P0.5422, overall transmission costs rose due to an increase in ancillary services (AS) rates to P0.6975 per kWh from P0.6640 per kWh.

The AS charge covers expenses for grid stability and reliability and includes the second tranche of a settlement related to AS cost from March 2024, which was deferred by the Energy Regulatory Commission (ERC).

Consumers will see an increase in their transmission charges with NGCP emphasizing that it does not profit from these costs and only passes them through.

NGCP is working closely with the Department of Energy (DOE) to prepare for the upcoming hot season, aiming to stabilize power supply-demand balance during peak periods.

The corporation expects Luzon to have the highest demand this year at 14,769 megawatts, compared to Visayas and Mindanao's projected demands of 3,111 MW and 2,789 MW respectively.