NGCP looking to lower transmission costs

MANILA, Philippines - Transmission service provider National Grid Corp. of the Philippines (NGCP) is looking to lower the cost of electricity used to maintain power stability.

Lower ancillary charge, which is completely passed on to consumers, will result in savings for the end-users, officials said last week.

“We are bringing down the prices for ancillary services so we are rationalizing it,” NGCP president and CEO Henry Sy Jr. told reporters.

“I think in very short time, you will see that we will be saving a lot of money for the consumer,” he added.

Ancillary service charge, which is used to maintain reliable grid operation and power quality, are completely passed on to consumers and are not part of NGCP’s revenues.

Ancillary service firms provide a specific amount of power used to regulate and maintain stability in the grid.

“Starting in 2011, we searched for more sources for ancillary services,” NGCP spokesperson Cynthia Perez-Alabanza said in a phone interview.

“We invited them to know what services they can provide so we can get competitive prices,” Alabanza said, adding that the goal is to broaden the supplier base of NGCP.

Under the Electric Power Industry Reform Act of 2001, the system operator is mandated to secure ancillary service providers, which are power generators.

NGCP bills and collects ancillary services charges from end-users before remitting it to the power generators, from which these ancillary services are taken.