By
Lenie Lectura - August 26, 2019
THE
Energy Regulatory Commission (ERC) is set to start hearings on the feed-in tariff
allowance (FiT-All) of P0.2278 per kilowatt-hour (kWh) being sought by the
National Transmission Corp. (TransCo).
In its 27-page order,
the ERC scheduled on October 23 a pretrial conference and evidentiary hearing,
with pretrial briefing and expository presentation for Luzon, Visayas and
Mindanao stakeholders scheduled earlier that month.
“Finding the instant
application to be sufficient in form and substance with the required fees
having been paid, the Commission hereby sets the determination of compliance
with the jurisdictional requirements, expository presentations, pretrial
conference and presentation of evidence,” said the ERC.
The FiT-All is a
uniform charge collected annually from all electricity users.
Distribution utilities (DUs), the National Grid Corporation of the Philippines
(NGCP), and retail electricity suppliers (RES) serve as collecting agents, and
the proceeds go to the FiT-All Fund, which is being administered by the
TransCo.
The FiT-All mechanism
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.
Basically,
the amount is meant to cover payments to renewable- energy (RE) developers
who are assured of a fixed rate per kWh for electricity generated by their
projects over a period of 20 years.
TransCo wants to
implement the Fit-All rates starting January 2020.
At
present, FiT-All rate of P0.2226 per kWh is being collected from
consumers. This is the applied FiT-All rate for 2018. The ERC has yet to
approve TransCo’s 2019 FiT-All application amounting to P0.2471 per kWh.
Under the FiT-All
guidelines, TransCo has to make an annual determination of the FiT-All rate and
file an application for the approval of the following year’s FiT-All rate
before the ERC not later than end of July each year.
“TransCo most
respectfully moves for the immediate issuance of a provisional authority
pursuant [PA] to Rule 14, Section 3 of the ERC rules to allow TransCo to timely
implement the FiT-All rate of P0.2278 effective January 2020 without prejudice
to the final and actual rate pending the final disposition of its present
application,” said TransCo. The grant of PA will allow TransCo to perform its
duties to make a timely payment of the FiT rate to RE developers to which they
are entitled, thereby allowing their continued operations.
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