TransCo seeks higher FIT-All next year

MANILA, Philippines — State-run National Trans­mission Corp. (TransCo) is seeking to increase the feed-in tariff allowance (FIT-All) next year.

In a filing with the Energy Regulatory Commission (ERC), TransCo is asking the Energy Regulatory Commission (ERC) to approve its proposed FIT-All rate for 2021 amounting to 18.81 centavos per kilowatt-hour (kwh).

While it is higher compared with the current FIT-All rate of 4.95 centavos per kwh, the proposed rate is lower than the proposed 2020 rate of 22.78 centavos per kwh.

The FIT-All rate sought for is in consideration of the pending approval of the 2020 FIT-All rate, TransCo compliance monitoring department manager Dinna Dizon said in a text message.

“The computation for 2021 is assuming that the 4.95 centavos per kwh would still be the prevailing rate,” she said.

TransCo said the proposed FIT-All 2021 rate would cover existing and projected eligible renewable energy capacities, which include 525.95 megawatts for solar, 400 MW for wind plants operational after the Renewable Energy Act of 2008, 33 MW for pre-RE Law wind plants, 251.46 MW for biomass, and 204.15 MW for run-of-river hydropower plants under the RE Act plus 75.88 MW for pre-RE Act plants.

Meanwhile, the 2021 FIT-All rate does not factor in the ERC suspension of FIT-All collections due to the COVID-19 pandemic.

“The suspension is not a big factor… It’s more that the 4.95 centavos per kwh is really already insufficient,” Dizon said.

The power regulator ordered the deferral of the FIT-All charge in April and May in consideration of the enhanced community quarantine.

Despite a low FIT-All rate being charged to consumers, TransCo is still able to pay RE developers.

“So far we’re still able to make full payment to the RE developers, but we need a higher FIT-All to avoid future deficits,” Dizon said.

FIT-All is a uniform charge billed to all on-grid electricity consumers, reflected as a separate component in their monthly electricity bills to cover payments to renewable energy developers under the FIT system.

The FIT-All collections are remitted to the FIT-All Fund established and administered by TransCo which keeps the fund in a government financial institution.

Distribution utilities (DUs), the National Grid Corp. of the Philippines (NGCP), and Retail Electricity Suppliers (RES) serve as collecting agents, and the proceeds go to the FIT-All Fund which is being administered by the TransCo.

The FIT-All mechanism was established pursuant to the Renewable Energy (RE) Act of 2008 which aims to spur the development of emerging renewable power sources such as wind, solar, run-of-river hydro, and biomass facilities.