MANILA, Philippines — The Energy Regulatory Commission (ERC) has ordered renewable energy (RE) developers not to impose interest on the delayed payments for feed-in tariff (FIT) revenue by the National Transmission Corp. (TransCo) by another six months.
The extension of the moratorium will start this month until April next year, ERC chairperson and CEO Agnes Devanadera said.
The ERC’s decision was based on its projection of a shortfall in the FIT allowance fund starting November to cover the payments to the eligible renewable energy (RE) plants.
TransCo has been designated to assume the role of FIT-All fund administrator by the ERC in November 2012, pursuant to RE Act of 2008.
In April, the state-run agency had already owed RE developers P1.2 billion.
“Hence, eligible RE plants shall not impose any interest or penalty for any partial or delayed payment of the actual FIT revenue to them by the National Transmission Corp. (TransCo) during the said extension period of the moratorium,” Devanadera said.
According to the ERC, extending the moratorium on FIT-All interest or penalty is its way of showing support to the government’s directive to start opening the economy, and the need to help the public to recover from the severe effects of the pandemic to avert further hardships and burden to electricity consumers.
Under the FIT Rules, the ERC may allow an exemption “from any provision of these rules, if such is found to be in the public interest and is not contrary to law or any other related rules and regulations.”
“We are temporarily relaxing the application of our FIT Rules only for the said moratorium period or until April 2022. If the moratorium on the FIT-All will not be extended, the consumers will bear the brunt of paying these penalties and interests should the FIT-All Fund be insufficient to pay the eligible generators,” Devanadera said.