RE feed-in tariff seen to push power rates up

MANILA, Philippines - Electricity rates may increase anew by at least four centavos per kilowatt-hour (kwh) if power regulators approve a tariff for the renewable energy sector, a government filing showed.

The feed-in tariff allowance (FIT-All) will be charged to all electricity consumers in line with government efforts to develop the renewable energy sector.

It will be reflected as a separate line item in the electricity bills of consumers if approved.

The National Transmission Corp. (Transco), the state-owned transmission company, filed a FIT-All of P0.04057 or four centavos per kwh.

In a July 21 filing before the Energy Regulatory Commission (ERC), Transco also sought for a provisional authority effective August 2014.

FIT-All is the rate that will be charged to consumers. This will help develop the renewable energy sector.

“(It) is most respectively prayed of this Honorable Commission that pending hearing on the merits of the present application, provisional authority to collect the FIT-All Fund as provided in the FIT-All guidelines,” Transco said in its petition.

FIT-All will serve as an incentive to renewable energy investors to develop wind, solar, biomass and hydropower projects in the Philippines.

The government has been trying to attract investors into the renewable energy sector amid calls among environmental groups to develop cleaner sources of energy other than coal.

The filing of the FIT-All comes while the Philippines is grappling with a looming power crisis in 2015.

Energy Secretary Carlos Jericho Petilla has proposed the declaration of Section 71 of the Electric Power Industry Reform Act of 2001 (EPIRA), the power reform law.

This would allow the government to tap additional capacity of up to 500 megawatts next year to address the looming shortage.