ERC cuts feed-in tariff allowance
The Energy Regulatory Commission (ERC) has slashed the feed-in tariff allowance (FIT-All) rate, which covers payments to renewable energy developers, amid the surplus in collection.
ERC chairperson and chief executive officer Agnes Devanadera said the approved FIT-All is lower by P0.1976 per kilowatt hour (kWh) from TransCo’s proposed rate of P0.2471 per kWh.
“The ERC, in computing the 2019 FIT-All rates, made use of the actual generation billed and the actual cost recovery rate from January until August 2019, among others,” Devanadera said.
The ERC considered the FIT-eligible plants with certificate of compliance for FIT and the 2019 projected incoming run-of-river (ROR) hydro and biomass plants.
This is in view of the Department of Energy’s extension of the installation target for ROR hydro and biomass up to end2019 or its full subscription, whichever comes first.
And while TransCo estimated an under-recovery of P122.7 million in its application, the ERC used the actual overrecovery reflected in the books of TransCo, which reached P6.7 billion as of Oct. 7.
Latest data from TransCo showed it already had P8.5 billion in the FIT-All fund as of Dec. 5.
“The approved 2019 FITAll rate will be charged to all on-grid consumers supplied with electricity through the distribution or transmission network starting the immediately succeeding billing period following TransCo’s receipt of the ERC decision.
The 2019 FIT-All will result to a reduction in the existing FIT-All rate and will increase the consumers’ purchasing power,” Devanadera said.
The FIT-All is a uniform charge billed to all on-grid electricity consumers, reflected as a separate component in monthly electricity bills, to cover payments to renewable energy developers under the FIT system such as wind, solar, run-of-river hydro, and biomass facilities.
It was established pursuant to the Renewable Energy Act of 2008 which aims to spur the development of emerging renewable power sources such as wind, solar, run-of-river hydro and biomass facilities.