Written by Madelaine B. Miraflor Published on 19 November 2012
The National Grid Corp. of the Philippines (NGCP), the country’s system operator and transmission service provider, said that there has been no increase in its transmission charges
The firm’s spokesperson and adviser for external affairs, lawyer Cynthia Alabanza, denied reports on the involvement of NGCP with the higher cost of electricity, which particularly said that the hike is caused in part by higher transmission charges and ancillary services costs incurred by NGCP from generators.
“NGCP’s annual maximum allowable revenue [MAR], which is billed in the form of transmission rates, is being fixed and approved by the Energy Regulatory Commission [ERC] on a yearly basis,” Alabanza said.
In a statement, NGCP said that its transmission charges are for power delivery service, system operations (SO), and metering services which recover, respectively, the cost of conveying electricity to or from the grid, the cost of SO services like communications and SCADA (Supervisory Control and Data Acquisition), and the cost metering facilities including software and hardware, while Ancillary Service (AS) charges are pass-through charges that are not part of NGCP’s revenues.
“Please note that the 39 percent increase in AS rates in Luzon [the comparison being made between September 2012 and October 2012 billing periods] is due to the increase in the market clearing prices for this type of service, which is a factor beyond our control,” Alabanza added.
AS, however, does not form part of NGCP’s approved transmission rate as it forms part of the revenue of the generators that provide the AS service.
Alabanza specified that “NGCP does not earn profits from the provision of ancillary services. source
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