ERC plans to extend suspension of feed-in tariff allowance collection

By Alena Mae S. Flores – October 18, 2023, 9:00 pm
from manilastandard.net

The Energy Regulatory Commission plans to extend the feed-in tariff allowance (FIT-All) suspension until the end of the year, its top official said.

“I think we can still do it for the year, but we continue to monitor because we do not want the fund to be depleted but I think it can still be done,” ERC chairperson Monalisa Dimalanta said in a recent forum.

The FIT-All charge is a standardized fee applied to all on-grid electricity consumers. It forms a critical component of the electricity bill, facilitating the development and promotion of renewable energy sources.

“From our simulations based on certain assumptions of WESM (Wholesale Electricity Spot Market) prices, yes it FIT-ALL Fund is sufficient. We regularly monitor because WESM prices have an impact on amounts charged against the fund,” Dimalanta said.

“Before it gets depleted, if necessary, we will need to lift the suspension of collection of the FIT Allowance so we will start building up the fund again to pay the RE developers supplying power as part of the FIT program,” she said.

The ERC again suspended the FIT-All collection for the third time in September. It said the decision introduced remedies to ease the financial burden on consumers amid the escalating costs of electricity.

“We take it one month at a time so we cannot say definitely it won’t be lifted,” Dimalanta said.

The ERC said it suspended the FIT-All collection to provide relief through reduced power cost in the amount of P0.0364 per kilowatt-hour.

“With the said ERC issuance, the consumers enjoy the benefit of reduced power cost for almost a year now. This move comes at a crucial time when inflation and the cost of living have been affecting numerous Filipino households,” the regulator said.