Thursday, December 21, 2017

Meralco seeks ERC clarification on FIT



 (The Philippine Star) |

MANILA, Philippines — Manila Electric Co. (Meralco) is asking the Energy Regulatory Commission (ERC) to clarify that feed-in tariff (FIT) payments to renewable energy (RE) developers should be based on meters as these are being charged to consumers.
Meralco said the FIT allowance (FIT-All) that would be paid to RE developers should be based on “pertinent, correct and accurate data/information” which should be approved by the power regulator.
“Meter data is the basis for payment of FIT rates to FIT-eligible RE developers.
In particular, RE developers are paid per kilowatt hour (kwh) generated as reflected in their respective meters. Thus, the accuracy of meter data is crucial when it comes to determining the appropriate FIT to which RE developers are entitled to,” it said.
“Hence all meter data for energy purportedly delivered by RE plants must be counter-checked/verified for the purposing of ensuring their accuracy before the same are considered/included in the calculation of amount of FIT-All that would be approved under the instant application as well as the amount of FIT that will be paid to RE developers,” Meralco said.
The FIT system details perks for power developers for a period of 20 years to invest in the more expensive renewable sector.
Payment to developers come from the collection of FIT-All,a uniform charge billed to all on-grid electricity consumers, reflected as a separate component in their monthly electricity bills.
The National Transmission Corp. (TransCo) is the administrator of the FIT-All fund.
The ERC is currently deliberating on TransCo’s application to raise the FIT-All rate to 22 centavos per kwh from the current 18.3 centavos per kwh approved only last May.
The delay in the approval of the FIT-All rate has caused a backlog in payments to RE developers. As of Oct. 5, TransCo has an outstanding balance of P7.5 billion.
To cover the backlog, TransCo is proposing to borrow the outstanding balance and more from multilateral lenders like Asian Infrastructure Investment Bank (AIIB) and World Bank.
The proposal to borrow has been approved in principle by Energy Secretary Alfonso Cusi and welcomed by Finance Secretary Carlos Dominguez, TransCo president and CEO Melvin Matibag said earlier.

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