ERC suspends FIT-All collections until August

MANILA, Philippines — The Energy Regulatory Commission (ERC) has extended the suspension of the feed-in tariff allowance (FIT-All) collection for another six months or until August to provide consumers relief in their electricity bills.

With the initial three-month suspension of the collection of the FIT-All set to end this month, the ERC re-evaluated the FIT-All Fund balance and found its healthy status, sufficient to cover the FIT-All payment requirements for six more months or from March to August.

The ERC decision is expected to bring relief to the consumers in terms of a lower power rate by P0.0364 per kilowatt-hour (kWh).

The FIT-All is a uniform charge imposed on all on-grid electricity consumers.

It is a component of the electricity bill that ensures the development and promotion of renewable energy in the country.

Collection of the FIT-All was suspended following the issuance by the ERC of a resolution in November last year halting the collection of P0.0364 per kWh FIT-All rate for three months from December 2022 to February 2023.

The suspension was made to help lower electricity rates and temporarily relieve consumer pressure in view of the rising level of inflation and cost of living affecting millions of Filipino households.

The ERC has directed distribution utilities, retail electricity suppliers, and the National Grid Corp. of the Philippines to report to the commission not later than March 31 the status of their implementation of the suspension of the collection of FIT-All charge from December 2022 to February 2023 billing period.

The  directive was issued to ensure correct and timely compliance of the entities as the collection agents.

The ERC, together with the Department of Energy (DOE), is also looking to issue for public consultation in the next few weeks the revised guidelines for the competitive selection process (CSP) as part of its commitment for the realization of least cost pricing.

The CSP is the process wherein a power supplier is chosen to supply electric power requirements of a distribution utility through transparent and competitive bidding.

The CSP policy was issued by the DOE to  speed up power supply procurement.

ERC chair Monalisa Dimalanta earlier said the ERC and the DOE were reviewing the current CSP guidelines “with the intention of making it a more streamlined process and more responsive to the needs of the times.”