The National Grid Corp. of the Philippines (NGCP) warns of increased transmission rates reflected in February electricity bills. The reason is the settlement of 70% of the remaining ancillary service (AS) cost for the March 2024 billing period, to be collected from Luzon, Visayas, and Mindanao customers over staggered periods.
THE National Grid Corp. of the Philippines on Wednesday warned of higher overall transmission rates that may be reflected in the February electricity bills of consumers mainly due to the settlement of the remaining 70-percent ancillary service cost for the March 2024 billing period.
For Luzon, Mindanao will be three months, and for Visayas this is within six months. This will be on top of the current AS,” said NGCP spokesperson Atty. Cynthia Alabanza during a news briefing on Wednesday. The grid operator does not earn from AS and does not benefit from the increase in prices. It is a pass-through cost and NGCP said power generating companies benefit from this. NGCP contracts 50 percent of its AS requirement from firm agreements and 50 percent from the AS Reserve Market.NGCP has yet to calculate the AS cost resulting from the 70 percent AS cost. “We are still waiting for the computation of the IEMOP .
It may be recalled that in March 2024, the ERC suspended the implementation of the billing and settlement in the co-optimized energy and reserve in the WESM due to concerns on the implementation of the Price Determination Methodology .
ENERGY RATES TRANSMISSION ANCHORY SERVICE NGCP ELECTRICITY BILLS
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