The Energy Regulatory Commission said Monday it approved a new feed-in tariff allowance of P0.2226 per kilowatt-hour, representing a reduction of P0.0337 per kWh from the current rate of P0.2563 per kWh.
The agency granted National Transmission Corp. a FIT-All rate of P0.2226 per kWh, which was also P0.0706 lower than the latter’s proposed rate of P0.2932 per kWh.
“This reduction in the FIT-All will mitigate the impact of the impending increase in rates due to the expected increase in electric power demand and dwindling power supply in the coming summer months,” ERC chairperson Agnes Devanadera said.
FIT-All is a uniform charge in peso per kWh collected from all electricity users. It is calculated and set annually. The latest rate was based on the 2018 power generation.
Distribution utilities, National Grid Corp. of the Philippines and retail electricity suppliers serve as collecting agents and the proceeds go to the FIT-All Fund which is being administered by TransCo.
The FIT-All mechanism was established pursuant to the Renewable Energy Act of 2008 which aims to spur the development of renewable power sources such as wind, solar, run-of-river, hydro and biomass facilities.
It is an incentive scheme that gives priority to renewable energy producers.
“The new FIT-All rate shall be charged to all on-grid consumers supplied with electricity through the distribution or transmission network starting the immediately succeeding billing period following TransCo’s receipt of the ERC decision,” Devanadera said.
The lower FIT-All will be implemented in the next billing cycle from receipt of TransCo of the decision. The actual implementation could start in April or May.
The ERC’s approval which was embodied in a decision issued in relation to ERC Case No. 2017-079 RC authorized TransCo to collect the FIT-All rate from all consumers.
TransCo president Melvin Matibag said the agency was expecting to wipe out the FIT-All backlog by April and update its remittance payment to renewable energy developers.
Dina Dizon, head of TransCo’s feed-in tariff team, said the company would now be able to pay the renewable energy developers after it received approval for its 2017 feed-in tariff allowance application.