Higher feed-in tariff to support renewables set in November
MANILA, Philippines – Consumers are expected to bear costlier power bills beginning in November, as the Energy Regulatory Commission (ERC) approved another hike to the fixed electricity rate that supports renewable energy producers.
In a media briefing on Monday, the commission said it had given the green light for a new feed-in tariff allowance (FIT-All), set at 21 centavos per kilowatt hour (kWh), higher than the nearly 12 centavos imposed earlier.
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This came just months after the ERC had implemented a 3.5-centavo increase in the FIT-All rate.
The scheme is an initiative meant to provide a guaranteed tariff to emerging clean power sources, such as wind, solar and small hydro plants. This aims to encourage more investments in renewable energy as the government targets to reduce dependence on imported fuel.
Public hearings
The move came following a series of public hearings nationwide on the application filed by the National Transmission Corp. (TransCo), which is tasked to manage the FIT-All fund.
According to ERC chair and chief executive officer Francis Saturnino Juan, the decision was “a careful balance.”
“It secures the growth of renewable energy that our country needs, while keeping electricity rates affordable for every Filipino household and business,” he said.
Protecting consumers
The official explained that if TransCo fails to pay FIT-eligible plants for the power they generate, they have the right to claim interest, which can lead to further upward adjustments in rates.
“This move reflects the ERC’s dual commitment to protecting consumer interests and advancing the Philippines’ sustainable energy future,” Juan added.
Given the cooler weather, the ERC chief is hopeful that the weaker demand could temper the slight increase in FIT-All rates.
Meanwhile, the ERC also approved the application of the Independent Electricity Market Operator of the Philippines (IEMOP) for the setting of the market fee covering 2025 to 2027 for the operation of the Wholesale Electricity Spot Market (WESM).
The fee, set at P0.0071 per kWh, covers the operational, administrative and capital expenditure budgets of Iemop as the Wesm operator and the Philippine Electricity Market Corp. as its governing body. INQ
