Transmission rates rise slightly as power reserve costs increase

Electricity consumers can expect a slight increase in transmission rates, reflecting the rise in the cost of reserve power, according to the National Grid Corp. of the Philippines (NGCP). Julius Ryan D. Datingaling, NGCP head of business and regulatory development, said the overall transmission rate increased by 0.77% to P1.4604 per kilowatt-hour (kWh) in June, as reported by BusinessWorld.

The NGCP attributed the adjustment primarily to higher ancillary service costs, which are charges for maintaining reserve power to ensure grid stability. The transmission rate component specifically for ancillary services rose, contributing to the overall increase. The new rate of P1.4604/kWh is up from the previous month's P1.4492/kWh.

The slight hike comes amid ongoing discussions on power sector costs and their impact on consumer bills. The NGCP continues to manage the grid's transmission system, and fluctuations in reserve costs periodically influence the final rates paid by end-users across the country.