Power transmission rates down in January

MANILA, Philippines —  Consumers can expect lower overall transmission charges for the second straight month in January due to a decrease in the cost of backup power, the National Grid Corp. of the Philippines said.

NGCP revenue management head Julius Ryan Datingaling said the average transmission rate dropped to P1.3455 per kilowatt-hour in the December supply period from the previous month’s P1.3547 per kWh.

“The downward movement is generally due to the decrease in ancillary service (AS) costs,” Datingaling said at a press conference yesterday.

The latest adjustment will be reflected in consumers’ electricity bills this month.

According to Datingaling, AS rates declined to P0.5971 per kWh in December from P0.6217 per kWh a month earlier.

AS charges cover the cost of backup power purchased by the NGCP to support grid reliability. The NGCP does not earn from AS costs, as such charges are directly remitted to generation companies providing power reserves to the grid.

The decline offset the uptick in transmission wheeling rates – what the NGCP charges for its primary service of delivering power – which increased to P0.6058 per kWh from P0.5894 per kWh on a monthly basis.

Transmission charges, which cover the cost of transporting electricity from power plants to distribution networks, account for around 10 percent of consumers’ bills.

Meanwhile, delays in the delivery of renewable energy projects may threaten the country’s power supply, raising the risk of shortages during the summer months, the Department of Energy said.