ERC approves hike in FIT-All charge

The feed-in-tariff allowance (FITAll) item in the electric bills that is being used to subsidize renewable energy (RE) projects will increase by R0.0733 per kilowatt hour-(kWh), according to a decision by the Energy Regulatory Commission.

That will then hike the overall RE subsidy rate in the electric bills to R0.2563 per kWh from what is currently billed at R0.1830 per kWh.

Nevertheless, the ERC ruling emphasized that such will just cover calculated FIT-All pass-on rate for calendar year 2017, excluding yet any adjustments that may have already been incurred in the initial 4-5 months this year.

“The Commission authorizes National Transmission Corporation (TransCo) to collect the FIT-All equivalent to R0.2563 per kWh, which is equivalent to R0.0733 per kWh increase from the current R0.1830 per kWh FIT-All rate,” the ERC ruling has stipulated.

The regulatory body explained that the adjusted FIT-All factored in the actual total billing of the RE developers in 2017 at R13.880 billion; plus the under-recovery of R4.428 billion in 2016, as reflected in the books of TransCo.

State-managed TransCo is the duly designated FIT Fund administrator, hence, it takes charge of settling the FIT claims of qualified RE projects. TransCo has estimated R26.150-billion total FIT payout to all RE developers this 2018.