ERC extends suspension of FIT-All collection
MANILA -The Energy Regulatory Commission (ERC) has again suspended the collection of a uniform charge collected from power consumers as electricity rates continue to escalate.
According to the commission, the collection of feed-in-tariff allowance (FIT-All) will remain suspended in September “until otherwise lifted,” extending the benefit of reduced power rates for consumers for at least a year.
“This move comes at a crucial time when inflation and the cost of living have been affecting numerous Filipino households,” the ERC said in a statement on Tuesday.
FIT-All is a P0.0364-per-kilowatt-hour charge included in the electricity bills of all power consumers that serves as an incentive for developers of clean energy technologies and encourage the private sector to help increase the share of renewables in the Philippine energy mix.
It is among the financial incentives provided by the Renewable Energy Act of 2008 to promote the use of emerging renewable power sources such as wind, solar, run-of-river hydro and biomass.
Renewable energy currently contributes 22 percent to the country’s total power capacity, with the national government aiming to increase this to 35 percent by 2030 and 50 percent by 2040.
The ERC first suspended FIT-All collections in November 2022 for three months. This was extended for another six months until August this year.
When asked whether the FIT-All Fund is sufficient to pay eligible renewable energy developers amid the indefinite suspension, ERC Chair Monalisa Dimalanta said it would depend on the prevailing Wholesale Electricity Spot Market (WESM) prices.
“[It’s] enough for about two to three months, depending on how WESM prices will go. If WESM prices go high, there is less need to get from the fund. If WESM prices go low, [the FIT-All] fund gets used up,” Dimalanta said.
The FIT-All rate is computed and set annually. Distribution utilities, grid operator National Grid Corp. of the Philippines and retail electricity suppliers serve as collecting agents.