Suspension of FIT-All collection possible until yearend, says ERC

MANILA, Philippines — The Energy Regulatory Commission (ERC) is optimistic that the suspension of the feed-in tariff allowance (FIT-All) collection could be maintained throughout the year, which will help lower electricity bills of consumers.

ERC chairperson Monalisa Dimalanta said there is a possibility that the ongoing suspension of the FIT-All collection could be sustained until yearend.

“It seems that it can be sustained for the year,” Dimalanta said.

“But we continue to monitor since we do not want the fund to be depleted. But it looks like it is possible,” she said.

The FIT-All charge is a standardized fee applied to all on-grid electricity consumers.

It forms a critical component of the electricity bill, facilitating the development and promotion of renewable energy sources in the country.

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

Collection of the FIT-All has been suspended by the ERC since December last year to provide consumers relief in their electricity bills.

Last August, the ERC extended anew the suspension of the FIT-All collection “until otherwise lifted by the commission.”

Collection of the FIT-All was initially suspended following the issuance by the ERC of a resolution in November last year halting the collection of P0.0364-per-kilowatt-hour FIT-All rate for three months from December 2022 to February 2023.

An extension was further made after the ERC re-evaluated the FIT-All Fund balance and found its healthy status, sufficient to cover the FIT-All payment requirements for six more months or from March to August.

The ERC earlier said the extension comes at a crucial time when inflation and the cost of living have been affecting most Filipino households.

As the administrator of the FIT-All fund, TransCo is mandated to ensure that the fund is sufficient to pay all renewable energy producers regularly.