ERC OKs 42 percent hike in FIT-All rates

MANILA, Philippines — Consumers can expect additional charges in their power bills next month after the Energy Regulatory Commission (ERC) approved higher rates for the feed-in tariff allowance (FIT-All).

In a recent commission meeting, the ERC set a new rate of P0.1189 per kilowatt-hour, reflecting a 42-percent increase from the current P0.0838 per kWh FIT-All collection.

The adjusted rate, which will take effect starting with the March billing, is lower than the P0.122 per kWh applied for by state-run National Transmission Corp. (TransCo).

A component of the electricity bill, FIT-All is a uniform charge imposed on all on-grid power consumers to support the development and promotion of renewable energy (RE) in the country.

In approving the increase, the ERC cited the depletion of the FIT-All Fund due to “sustained low prices” in the Wholesale Electricity Spot Market (WESM), the centralized venue for electricity trading.

“The lower-than-expected WESM prices adversely affected the fund’s capacity to cover the FIT payments,” the ERC said, noting that the adjustment would ensure continued payments for electricity supplied by FIT-eligible RE plants.

FIT is a scheme that offers guaranteed payments on a fixed rate per kWh for emerging RE facilities, excluding any generation for own use.

Under existing FIT rules, all eligible RE plants are eligible for the applicable FIT rate for a period of 20 years.

According to the regulator, the FIT differential – which is the difference between FIT rates payable to RE and WESM prices –  was revised to about P10.13 billion from TransCo’s forecast of around P13.64 billion.