National Grid Corp. of the Philippines said Thursday power consumers will benefit from the reduction of ancillary services charges by as much as 40 percent.
National Grid, operator of the countryâ€™s power transmission network, said it asked the Energy Regulatory Commission to approve its ancillary services procurement agreements with Trans-Asia Power Generation Corp., Trans-Asia Oil and Energy Development Corp. and Panasia Energy Inc.
The company said the ancillary service rates under the application with the ERC were significantly lower and cheaper than the current ancillary charges.
National Grid said the new contracting methodology, rates and payment structure to be applied on all prospective ASPAs were designed to lower the overall cost of ancillary services by as much as 40 percent and ensure the availability of ancillary service capacity for the reliability and security of the grid.
The Electric Power Industry Reform Act defines ancillary services as those â€œthat areÂ necessary to support the transmission of capacity and energy from resources to loads whileÂ maintaining reliable operation of the transmission system in accordance with good utilityÂ practice and the Grid Code.â€
Ancillary services stabilize electricity supply and prevent systemwide blackout. These regulateÂ the electricity coming into homes so that lights do not flicker.
National Grid bills and collects ancillary service charges from its direct customers, including electric cooperatives and distribution utilities then remits them directly and entirely to the ancillary service providers.
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