Monday, September 16, 2013

NGCP’s transmission charge decreases

The country’s transmission service provider, National Grid Corporation of the Philippines (NGCP) clarifies that it did not increase its transmission charge or its Power Delivery Service (PDS) charge billed to its power customers.

According to NGCP’s latest customer bulletin, its PDS rate for Luzon Grid, which covers the franchise areas of Meralco, decreased by Php 1.11 per kilowatt/month. It is, however, the Ancillary Service (AS) charge that increased by 42% last August.

“The AS charges are “pass through charges” which we bill and collect on behalf of generation companies or AS providers. It is similar to generation charges billed by distribution utilities, which are also “pass through charges.” Distribution utilities bill for these services, but remit them directly and entirely to the generators. It is the same for NGCP and AS. It is this charge which increased for the month of August.” reiterated NGCP Spokesperson Atty. Cynthia D. Perez-Alabanza.

AS charge forms a part of NGCP’s billing statement that is remitted directly and entirely to generation companies that provide the AS. NGCP does not earn profits from this. NGCP merely collects then remits its collections entirely to the AS providers.

“NGCP is committed to actively find ways to ease the cost of transmission charges. NGCP’s charges were, in fact, designed and approved by the ERC to decrease over the 3rd regulatory period which covers the years 2011 to 2015,” stated Alabanza.

NGCP is a privately owned corporation in charge of operating, maintaining, and developing the country’s power grid. It transmits high-voltage electricity through “power superhighways” that include the interconnected system of transmission lines, towers, substations, and related assets. It continues to perform its mandate as a transmission service provider in full compliance with the rules and regulations of the ERC and existing laws governing its operations.

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