The Energy Regulatory Commission (ERC) approved the National Transmission Corp.’s (TransCo) application a feed-in tariff allowance (FIT-All) of P0.1189 per kilowatt-hour effective the March 2025 billing.
“We can assure the public that we continue to monitor the status of the fund and the payments required to our RE FIT suppliers. If the collection is not needed, such as when WESM [Wholesale Electricity Spot Market] prices are high, we can suspend implementation similar to what we did in December 2022,” ERC chairperson Monalisa Dimalanta said.
The FIT-All is a uniform peso per kWh charge billed to all on-grid electricity consumers who are supplied with electricity through the distribution or transmission network.
TransCo files its FIT-All application with the ERC annually in its capacity as the FIT-All fund administrator tasked with the establishment, management/administration and disbursement/ settlement of the FIT-All Fund.
The fund is used to pay the FIT of renewable energy developers, as mandated under the Renewable Energy Act of 2008.
The law mandated establishing a FIT system for electricity produced from wind, solar, ocean, run-of-river, hydropower and biomass. The FIT system guarantees all eligible renewable energy plants an entitlement for the applicable FITs for 20 years.
Developers of Renewable Energy for AdvanceMent (DREAM) president Jay Layug thanked the ERC for its continuing implementation of RE Law through the issuance of the adjusted FIT-All for 2024. DREAM is the umbrella organization of all renewable energy associations in the Philippines.
“This further cements the confidence of the RE developers and the private sector in the Philippine EE industry. This ERC move is consistent with the recent Supreme Court decision in promulgated last August 13, 2024 upholding the constitutionality of the Renewable Energy Act of 2008 and the FIT System towards encouraging development of renewable energy resources as tools to effectively prevent or reduce harmful emissions and thereby balance the goals of economic growth and protection of health and environment,” Layug said.