ERC set to issue order on feed-in tariff rate collection

Manila Standard Today
By Alena Mae S. Flores | Oct. 23, 2014 at 11:01pm

The Energy Regulatory Commission is set to issue an order for the collection of feed-in tariff allowance by state-owned National Transmission Corp. amounting to P0.04057 per kilowatt-hour covering 2014 and 2015.

ERC executive director Francis Saturnino Juan told reporters the commission already completed the hearings and deliberations on TransCo’s application but the decision remained to be finalized.

The decision is expected to translate into higher rates on power bill of power consumers.

“We’re finalizing the order. It will contain what the commission has decided. The commission will take into account in it determination the effectivity [of the FIT-All],” Juan said.

ERC earlier said FIT-All would be collected and placed in a fund to be administered by TransCo. FIT-All, once approved, will become another line item in the bill of all power consumers similar to the universal charge.

FIT-All is the fund that will be used to pay for the renewable energy developers who qualified under the feed-in tariff scheme.

The ERC approved feed-in tariff rates as follows: run of the river hydro (P5.90 per kWh); biomass (P6.63 per kWh ); wind (P8.53 per kWh); and solar (P9.68 per kWh).

The feed-in tariff system guarantees all eligible renewable energy plants the applicable rates for a period of 20 years.

“The grant of a provisional authority will allow TransCo to perform its duties to pay the renewable energy developers on time the FIT rate to which they are entitled to thereby allowing their continued operations,” TransCo said in its petition.

TransCo, in its filing, however, set the administration and disbursement allowance at zero pending its negotiations with the prospective trustee banks.

TransCo asked ERC to allow it to file a disbursement allowance once negotiations with a trustee bank was concluded.

The company was previously evaluating the proposal of two government-owned financial institutions, namely Land Bank of the Philippines and Development Bank of the Philippines for the selection of the trustee bank of the FIT-All fund. source