What NGCP charges you: A breakdown of costs of power delivery
MANILA, Philippines — The National Grid Corporation of the Philippines (NGCP) recently provided detailed information about transmission charges included in consumers' electricity bills.
These charges cover the delivery and balancing of high-voltage electricity from generators to distribution utilities, ensuring power supply across the country.
Among the components that make up electricity bills, the transmission charge accounts for approximately 3.5% of the total cost. This means, for every peso spent on electricity, consumers contribute around P0.04 toward the transmission charge.
These components are:
- Distribution charge - 19.12%
- Ancillary services - 1.54%
- Transmission charge - 3.5%
- Generation charge - 56.19%
- Others - 19.65%
Significantly, the generation charge, comprising the largest proportion, represents the cost of electricity production. In contrast, the transmission charge covers the expenses associated with delivery of electricity.
"Transmission charge is the cost of delivering and balancing high-voltage electricity from the generators to the distribution utilities," as explained in the NGCP chart.
The transmission charge includes various components such as the Power Delivery Service charge, System Operator charge, Metering Service Provider charges, as well as Connection and Residual Subtransmission charges. Together, these charges facilitate the transmission of electricity across the grid and its delivery to distribution utilities.
The Ancillary Services charge, meanwhile, is a pass-through fee collected by the grid operators and directly remitted to service providers.
The release of the breakdown followed questions that hounded the NGCP, particularly at the Senate, which scrutinized the company's performance in the years since it was privatized in 2009, rates it charges to consumers and unfinished projects.
As the backbone of the country's power transmission system, NGCP plays a crucial role in ensuring uninterrupted electricity flow from generators to distribution utilities.
In earlier statements, the NGCP said it has infused more than P300 billion in the transmission system, resulting in lower transmission charges compared to when it was under government-run.
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