LOWER power transmission rates in May will be reflected in consumers’ electricity billing for June, the National Grid Corp. of the Philippines (NGCP) said on Monday.
Average transmission rates dropped to P1.4492 per kilowatt-hour (kWh) from P1.5983/kWh in April due to lower wheeling and ancillary services rates.
Wheeling rates are base delivery fees charged by the NGCP to transmit electricity from power plants through the high-voltage lines to local distributors.
Ancillary services rates are pass-through fees for reserve power used to balance supply and demand, regulate voltage, and stabilize the grid against fluctuations.
NGCP said its wheeling rates declined by 6.99 percent to P0.5607/kWh in May from P0.6028/kWh in April, while ancillary service rates decreased by 10.73 percent to P0.7220/kWh in May from P0.8088/kWh in April.
The decrease in both rates was in turn caused by billing determinants for the month, the NGCP said.
Billing determinants are specific units of measurement or metrics used by utility companies to calculate electricity charges. They represent how much power is used, when it is used, and how it is priced.
The most common billing determinants include:
– Energy Consumption (kWh) or the amount of electricity used over the billing cycle.
– Demand (kW or kVA) or the peak amount of power drawn at any given time (often a 15-30-minute window). This measures the maximum strain placed on the power grid.
– Time-of-use (TOU) determines when the power is used (e.g., peak vs. off-peak hours).
– Customer charge (per month) or the flat fee applied regardless of usage, covering billing, metering and grid maintenance.
Consumers have been grumbling on social media about their soaring electricity bills these past few months.
NGCP noted that its revenues are capped and regulated by the Energy Regulatory Commission.
