TransCo seeks nod of ERC for higher FIT-All rate in 2025
By Lenie Lectura – August 22, 2024
from Business Mirror
The National Transmission Corp. (TransCo) is seeking the approval of the Energy Regulatory Commission (ERC) for the implementation of a feed-in-tariff allowance (FIT-All) rate of P0.1006 per kilowatt hour (kWh) for 2025.
The FIT-All is a uniform charge in pesos per kWh billed to all on-grid electricity consumers, reflected as a separate component in monthly electricity bills, to cover payments to renewable energy (RE) developers who are assured of a fixed rate per kWh for electricity generated by their projects over 20 years.
The proposed rate is higher than the current FIT-All rate of P0.0838 per kWh.
In its 29-page application, TransCo asked the ERC a FIT-All rate of P0.1006/kWh for 2025 corresponding to the fund requirement of RE plants under the current FIT system and the potential RE plants under Green Energy Auction Program (GEAP).
“The grant of a provisional authority will enable TransCo to fulfill its duties and ensure timely payments of the FITs to FIT-eligible RE developers.
Conversely, a delay in the approval of the proposed 2025 FIT-All rate and the denial of the prayer for provisional authority may lead to possible shortfall in the FIT-All fund, preventing TransCo to promptly and or fully pay the actual FIT revenue to eligible RE plants,” TransCo said in its application.
Under the FIT-All guidelines, any delay or partial payment to eligible RE plants will incur interest which will eventually result in additional charges to end-users.
TransCo is the administrator of the FIT-All fund and is also in charge of settling the FIT claims of qualified RE projects in the solar, wind, biomass and hydro sectors.
Based on filings, TransCo has a surplus of P3,166,406.56 on its FIT-All collections. This means that it is financially capable to settle the current FIT-All claims of the RE developers.
TransCo is required to make an annual determination of the FIT-All rate that will be implemented for the following year and file its application with the ERC not later than the end of July of each year.
The ERC establishes the FIT-All rate on an annual basis, taking into account the projected annual required revenue of the eligible RE plants, previous year’s over or under recoveries, administration costs, forecasted annual electricity sales, and other relevant factors to ensure that no stakeholder is allocated with additional risks in the implementation of the FITs.
