The Energy Regulatory Commission (ERC) approved the application for Feed-in Tariff Allowance (FIT-All) of the National Transmission Corporation (TransCo), and set the rate at P0.1189 per kilowatt-hour.
The collection of the 2024 adjusted FIT-All will take effect starting the March 2025 billing.
The Commission approved a rate lower than the P0.1220/kWh applied for by TransCo, but higher than the current P0.0838/kWh FIT-All being collected from on-grid consumers.
In approving the increase, the ERC noted the depletion of the FIT-All Fund due to sustained low prices in the Wholesale Electricity Spot Market (WESM).
The lower-than-expected WESM prices adversely affected the fund’s capacity to cover the FIT payments, necessitating adjustments in the FIT-All computation to ensure payments for the supply to consumers coming from renewable energy (RE) FIT-eligible power plants, the ERC said in a statement.
The FIT differential, representing the difference between FIT rates payable to RE and WESM prices, was revised from TransCo’s forecast of P13,641,077,775, to P10,125,029,884.
The ERC used actual generation data for January to December 2024, rather than forecasted figures, to ensure a more accurate assessment, it added.
Its computations for the Administration Allowance and Disbursement Allowance were also based on actual expenses incurred in 2024, rather than TransCo’s projected figures, the ERC stressed, adding that “it is committed to ensuring that FIT-All rates are fair, transparent, and reflective of actual market conditions.” ||
