MANILA, Philippines — The Energy Regulatory Commission (ERC) is suspending the collection of Feed-In Tariff Allowance (FIT-All) for three months to lower electricity rates.
ERC Chairperson Monalisa Dimalanta yesterday said the commission has deliberated on the matter and a resolution to suspend FIT-All charges is currently being crafted.
Dimalanta said current FIT-All rate, which is being collected by the National Transmission Corp. (TransCo) from on-grid consumers to pay renewable energy
developers, is less than P0.04 per kilowatt-hour.
“So it will be suspended temporarily for three months. Hopefully, that will help cushion and reduce slightly our electricity rates,” she said.
Dimalanta said the aim is for the resolution to be issued soon in order for the suspension to take effect starting next month up to February.
The suspension, however, will not affect the renewable energy developers’ viability as the FIT-All fund has available balance to service its obligations during the period.
“But to make sure that we still are able to pay renewable energy developers in full, we will monitor monthly the status of the fund because there are funds to pay them,” Dimalanta said.
“After the three months, we will review again. If the fund is still healthy, then we will see if we can extend. But if not, then we will have to resume the collection after February,” she said.
Dimalanta said the ERC is also exploring other means to lower electricity rates.
Reflected as a separate component in monthly electricity bills, the FIT-All is a uniform charge billed to all on-grid electricity consumers to cover payments to renewable energy developers under the FIT system.
Collections are then placed in the FIT-All Fund managed by TransCo.