ERC: No Interest On Delayed FIT Payments For 6 Months

BY LENIE LECTURA – MAY 5, 2021
from Business Mirror

The Energy Regulatory Commission (ERC) has imposed a moratorium on interest for delayed payment of FIT (Feed-in-Tariff) revenue owed by the government to renewable energy (RE) players.

In a public advisory, the ERC declared a six-month moratorium on the imposition of interest for the partial or delayed payment of the actual FIT revenue to the eligible RE power facilities.

The moratorium takes effect from the relevant billing period wherein the interest or penalty had first been incurred, if such moratorium has not yet been in place.

During the period of the moratorium, eligible RE plants shall not impose any interest or penalty for any partial or delayed payment of the actual FIT revenue to them by the National Transmission Corp. (TransCo).

This move is meant to promote public interest due to the severe effects of the Covid-19 pandemic, said the ERC.

Under the rules, when payments are delayed for the RE developers, they are entitled to interest. With the ERC advisory, if TransCo incurs delay in paying the RE players, no interest will be imposed. “Bottom line, savings for the consumers. Under the rules also, those interest are pass on to consumers,” said ERC Commissioner Rexie Digal.