TransCo receives additional FIT rate
The Energy Regulatory Commission allowed National Transmission Corp. to collect an additional P0.0590 per kilowatt-hour in feed-in tariff allowance from consumers, bringing the rate to P0.1830 per kWh starting next month.
“Additional amount for FIT All for 2016 is P0.0590. Add that to the approved FIT All for 2015 and an earlier approved P0.1240, gives us an updated FIT-Allowance amount for over P0.18,” ERC commissioner and officer-in-charge Alfredo Non said.
TransCo is currently collecting P0.1240 per kWh from consumers under the FIT-Allowance line item in the power bills as mandated by the Renewable Energy Act.
The rate will be changed to P0.1830 per kWh in June following the ERC approval. The approval followed ERC’s recent decision ordering Manila Electric Co. to refund P0.75 per kilowatt-hour to customers.
The approved Meralco refund, which will also take effect in June, will mitigate the impact of the higher FIT-Allowance.
ERC said it recognized the compelling need to adjust the FIT-Allowance “in order to avert any negative impact on the consumers who are actually subsidizing the growth of the RE industry through the FIT-Allowance Fund.”
ERC granted the adjustment of the FIT-Allowance charge “to all on-grid end-users for an additional amount of P0.0590 per kWh from the P0.1249 per kWh current level.”
“This shall take effect in the immediately succeeding billing period following the receipt of TransCo of the instant decision,” ERC said.
The decision, dated May 9, was signed by Non and the other commissioners, namely Gloria Yap-Taruc, Josefina Asirit and Geronimo Sta. Ana. ERC chairman Jose Vicente Salazar’s signature was not in the order. Salazar is still on 90-day preventive suspension as ordered by Malacañang.
ERC, however, is still conducing hearings on TransCo’s application for a higher FIT-Allowance for 2017.
TransCo sought for a rate of P0.2291 per kilowatt-hour starting 2017, an increase of P0.1051 per kWh from the P0.1240 per kWh rate. TransCo, which manages the FIT-Allowance Fund, filed the application in November.
The FIT-All Fund is the fund used to pay the developers of renewable energy that were given feed-in tariff incentives by ERC.