National Transmission Corp. has warned that the delay in the approval of the feed-in tariff allowance rates may lead to the depletion of the FIT-All fund.
“We have challenges that point to regulatory delays that also prioritize the consumer welfare over the welfare of suppliers. We are therefore in search of how to balance the competing challenges and needs of consumers and suppliers,” TransCo president Melvin Matibag said in a statement.
Matibag cited a need to stabilize the FIT-All fund to minimize—if not eliminate—delays by exploring the possibility of tapping the RE Trust Fund as provided for by Section 28 of the Renewable Energy Law, where the RE Trust Fund would be collected and managed by the Department of Energy to enhance greater use of RE resources.
TransCo said it would also ask the DOE to be granted access to the RETF of the RE Law for the sustainable administration of the FIT-All Fund, which supports RE development.
The company is also exploring the possible use of corporate funds as fund administrator, subject to interest-charges in compliance with government rules for the use of GOCC funds, and the Development Partners Green Fund, where the corporation will pursue donation fund and zero-interest global green funds of development partners of the United Nation Framework Convention for Climate Change.
TransCo was assigned to assume the role of FIT-All Fund Administrator under ERC Resolution No. 15, Series of 2012, dated Nov. 19, 2012. TransCo was tasked with the establishment, management, administration and disbursement/settlement (through the trustee bank) of the FIT-All Fund for the benefit of FIT-eligible RE developers.
As administrator, TransCo is tasked to file the rate application before the ERC for the annual FIT-All rate determination.
TransCo recently initiated its first virtual forum on FIT-All where around 130 representatives from 48 renewable energy developers participated in. The forum served as the venue to discuss the issues and concerns on FIT-All fund status and implementation of the FIT.
Matibag said that the forum was an opportunity to set the records straight on FIT and hear the concerns of the developers especially as settlement of FIT revenues was affected by the pandemic.