Consumers may have to pay 10 centavos more per kWh of electricity
MANILA, Philippines — Consumers might need to pay more for electricity following the partial lifting of the suspension on settling transactions in the reserve power market, according to National Grid Corp. of the Philippines.
In a briefing on Thursday, NGCP said the recent directive of the Energy Regulatory Commission would translate to an increase of more than 10 centavos per kilowatt-hour (kwh).
Last March, the regulator suspended the billing and settlement at the reserve market to temper spikes in electricity rates.
On Wednesday, the ERC announced the partial lifting of the trading restrictions imposed on the reserve market to allow generation companies to recover a portion of their costs in providing power reserves.
READ: ERC eases WESM trading curbs
In ERC Case No. 2023-002 RC, the regulator explained that power generators would be able to recoup P1.7 billion or an initial 30 percent of P5.7 billion worth of trading transactions at the Wholesale Electricity Spot Market for the March billing period.
Based on this order dated May 9 order of the ERC, the amount is subject to adjustments pending NGCP’s submission of the list of noncompliant generators.
NGCP spokesperson Cynthia Perez-Alabanza said the grid operator estimates a hike of at least 10 centavos on the cost of a kWh of electricity, based on the latest ERC order.
She said the amount to be collected from consumers will vary among distribution utilities and electric cooperatives.
“When NGCP charges [power firms], we do it per grid. So, it’s one charge per grid. That’s one for Luzon, one for Visayas, one for Mindanao. But in the case of consumers, we do not bill them to consumers,” she said. INQ
