NGCP claims small share in electric bills
Published Jun 7, 2020 12:00 am
By Myrna M. Velasco
Private transmission firm National Grid Corporation of the Philippines (NGCP) said its cost-share in the overall electricity tariff passed on to consumers in current bill just accounts for roughly 3 percent only.
“Based on the May 2020 electricity billing by distribution utility from the April 2020 transmission charge, the rate was only P0.04 for every peso spent on electricity, representing 3.93-percent of the electricity for the month,” the company said.
The transmission firm similarly indicated that for year 2019, its tariff had been down to a record low of P0.51 per kilowatt hour. As a regulated power utility, NGCP’s tariffs would have to go through the approval of the Energy Regulatory Commission (ERC) before its pass-on to consumers.
NGCP explained the transmission charge “is the cost of delivering and balancing high voltage electricity from the generators to the distribution utilities,” – or it is like the main backbone or highway where electricity flows so it can go to the load network of power distributors; which in turn will be delivering such electricity to the households and businesses.
On the ancillary services (AS) charge component of the NGCP’s pass-on tariff, the transmission firm noted that this accounted for 4.10-percent. Collections from that charge will be subsequently remitted to the AS providers, which are the power generation companies.
Via an infographic template, NGCP specified that the bulk of the amount paid by consumers in their electricity bills would go to the power plant owners – and that would represent 44.03-percent share in pie.
The other components in the power rates constitute the charges of the power distribution firms at 33.49-percent; then government taxes and other charges (including subsidies) which cover the remaining 14.45-percent.
“The transmission charge has been consistently on its downward trend when compared with the P0.69 kWh charged by the National Transmission Corporation (TransCo) prior to the privatization of the transmission assets in 2009,” the company stressed.
It highlighted that a year prior to its assumption of the management of the country’s power transmission facilities, the transmission charge being passed on by TransCo in 2008 was at P0.69 per kilowatt hour.
“There was an initial seesaw on the transmission tariff upon NGCP’s assumption until successive reductions came in recent years as NGCP brought it down further to P0.51 per kWh as of 2019,” the company conveyed.
NGCP became the operator of the Philippine power transmission assets in January 2009, after winning the 25-year concession deal on the assets’ privatization that had been administered by state-run Power Sector Assets and Liabilities Management Corporation.
“Based on the May 2020 electricity billing by distribution utility from the April 2020 transmission charge, the rate was only P0.04 for every peso spent on electricity, representing 3.93-percent of the electricity for the month,” the company said.
The transmission firm similarly indicated that for year 2019, its tariff had been down to a record low of P0.51 per kilowatt hour. As a regulated power utility, NGCP’s tariffs would have to go through the approval of the Energy Regulatory Commission (ERC) before its pass-on to consumers.
NGCP explained the transmission charge “is the cost of delivering and balancing high voltage electricity from the generators to the distribution utilities,” – or it is like the main backbone or highway where electricity flows so it can go to the load network of power distributors; which in turn will be delivering such electricity to the households and businesses.
On the ancillary services (AS) charge component of the NGCP’s pass-on tariff, the transmission firm noted that this accounted for 4.10-percent. Collections from that charge will be subsequently remitted to the AS providers, which are the power generation companies.
Via an infographic template, NGCP specified that the bulk of the amount paid by consumers in their electricity bills would go to the power plant owners – and that would represent 44.03-percent share in pie.
The other components in the power rates constitute the charges of the power distribution firms at 33.49-percent; then government taxes and other charges (including subsidies) which cover the remaining 14.45-percent.
“The transmission charge has been consistently on its downward trend when compared with the P0.69 kWh charged by the National Transmission Corporation (TransCo) prior to the privatization of the transmission assets in 2009,” the company stressed.
It highlighted that a year prior to its assumption of the management of the country’s power transmission facilities, the transmission charge being passed on by TransCo in 2008 was at P0.69 per kilowatt hour.
“There was an initial seesaw on the transmission tariff upon NGCP’s assumption until successive reductions came in recent years as NGCP brought it down further to P0.51 per kWh as of 2019,” the company conveyed.
NGCP became the operator of the Philippine power transmission assets in January 2009, after winning the 25-year concession deal on the assets’ privatization that had been administered by state-run Power Sector Assets and Liabilities Management Corporation.