TransCo submits application for higher FIT-All rate

By Alena Mae S. Flores – July 31, 2022, 7:30 pm
from manilastandard.net

State-run National Transmission Corp. is seeking an approval from the Energy Regulatory Commission for a higher feed-in tariff allowance of P0.2382 per kilowatt-hour in 2023.

This would translate into an increase of P0.1399 per kWh from the 2022 rate of P0.0983 per kWh.

TransCo included in its application the collection P0.2381 per kWh FIT-All rate of eligible renewable energy plants. It is computed based on the FIT All and P0.0001 per kWh for the funding requirement of potential RE plants under the Green Energy Auction Program held in June.

TransCo administers the feed-in tariff fund, which is used to pay the FIT of renewable energy developers, as mandated under the Renewable Energy Act of 2008. The law establishes the FIT system for electricity produced from wind, solar, ocean, run-of-river, hydropower and biomass projects.

It guarantees all eligible renewable energy plants an entitlement for the applicable FITs for 20 years.

The FIT-All is a uniform charge billed to all on-grid electricity users and is set annually by the ERC. Power customers are now paying an FIT-All rate of P0.0983 per kWh.

“The grant of a provisional authority will allow TransCo to perform its duties and to make a timely payment of the FITs to FIT-eligible RE developers to which they are entitled, thereby allowing their continued operations,” TransCo said.

TransCo sought an approval to collect a total of P17.499 billion to pay for FIT differentials, including the previous years starting from 2014, working capital allowance of P4.2712 billion for FIT plants and P13.4 million for GEAP plants, administration allowance of P23 million and disbursement allowance of P2.165 million.