ERC approves higher renewable energy charge

The Energy Regulatory Commission (ERC) has approved a new rate for the feed-in tariff allowance (FIT-All) of P0.2073 per kilowatt-hour (kWh), effective with consumers’ November electricity bills.

The new rate represents an increase of P0.0884 per kWh from the current FIT-All rate of P0.1189 per kWh. However, the approved rate is significantly lower than the P0.3675 per kWh proposed by the National Transmission Corp. (TransCo), which manages the FIT-All fund.

ERC chairperson and chief executive Francis Saturnino Juan SAID the decision is “a careful balance” that “secures the growth of renewable energy that our country needs, while keeping electricity rates affordable for every Filipino household and business.”

He said the move “reflects the ERC’s dual commitment to protecting consumer interests and advancing the Philippines’ sustainable energy future.”

The FIT-All is a uniform peso-per-kWh charge applied to all on-grid electricity consumers. The approval aims to ensure continued financial support for renewable energy (RE) projects under the feed-in tariff program, established by the Renewable Energy Act of 2008.

This law mandated a FIT system for electricity generated from wind, solar, ocean, run-of-river hydropower, and biomass, guaranteeing eligible RE plants entitlement to applicable FITs for twenty years. The system is designed to encourage investment in clean energy, stabilize power supply, reduce dependence on imported energy sources and protect the environment.

The approved rate is a balanced approach designed to ensure timely payments to RE producers while minimizing the additional cost to consumers from interest payments.

The new rate covers outstanding payments and maintains a small buffer fund, considering the required funds to settle a P19.06-billion FIT differential and build a P3.74-billion working capital allowance to guarantee timely payments.

TransCo reported that as of Sept. 5, 2025, 97.6 percent of FIT obligations, amounting to P215.27 billion, were paid, with a small portion outstanding.  The FIT-All balance stood at P9 million.

Following a review of TransCo’s application, which included public hearings, the ERC has ordered an immediate audit to guarantee the proper management of the FIT-All fund. Grid operators and power distributors have been directed to make their records available for this review.