Higher transmission charges due to reopening of reserve market—NGCP

By Alena Mae S. Flores – September 12, 2024, 7:05 pm
from manilastandard.net

The National Grid Corp. of the Philippines (NGCP) said Thursday the increase in transmission charges in the September 2024 power bills were due to higher ancillary services (AS) rates stemming from the reopening of the AS Reserve Market (AS-RM).

NGCP said transmission wheeling rates, or what the company charges for its primary service of delivering power, went down by 5.5 percent from P0.5038 per kilowatt-hour (kWh) in July to P0.4761 per kWh in August.

It said AS rates for the August billing period increased by 125.92 percent to P0.6127/kWh from P0.2712/kwh in July, which pertains to the AS sourced from the reserve market, which resumed on Aug. 5. It does not include the settlement of the remaining 70 percent AS cost for the March billing period, it said.

The ERC ordered the partial lifting of the suspension on settlement amounts in the AS RM on May 9 and approved the 30 percent partial settlement for March billing period to mask the spike in AS charge.

“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 grid and transmission operator said.

Meanwhile, NGCP said it expects to complete the Cebu-Bohol 230 kV Interconnection Project by the end of the year.

The Cebu-Bohol interconnection project, with a transfer capacity of 600 megawatts, will significantly boost supply reliability in the Bohol Grid by providing direct access to bulk generations from Cebu, in addition to the existing Leyte-Bohol submarine cable.

The full completion of the project is expected to resolve congestion in the Leyte-Bohol 138 kV interconnection, which will unburden consumers from high electricity prices in the area.

NGCP already energized the transmission connection between Bohol and Cebu in July, specifically the Dumanjug-Corella 230 kV Line 1 and Dumanjug 70 MVAR.