Published
By MYRNA M. VELASCO
The Energy Regulatory
Commission (ERC) has finally issued a decision reducing to ₱0.0495 per kilowatt
hour (kwh) the feed-in-tariff allowance (FIT-All) line item in the electric
bills being paid for by Filipino consumers.
That will be a
substantive reduction of ₱0.1731 per kwh from the prevailing FIT-All charge of
₱0.2226 per kwh, according to the regulatory body.
And if referenced on
the original application of fund administrator National Transmission
Corporation (TransCo) at ₱0.2471 per kwh, the total reduction decided upon by
the ERC was at a scale of ₱0.1976 per kwh.
The new lower FIT-All
charge shall be reflected in the bills of consumers “starting the immediately
succeeding billing period following TransCo’s receipt of the decision,”
according to ERC Chairperson Agnes T. Devanadera.
She stressed that “the 2019 FIT-All will result to a reduction in the existing
FIT-All rate and will increase the consumers’ purchasing power.”
Devanadera further
explained that “in computing the 2019 FIT-All rates, (the ERC) made use of the
actual generation billed and the actual cost recovery rate from January to
August 2019.”
The regulatory body
also stipulated that “the 2019 FIT-All considered the FIT-eligible plants with
certificate of compliance (FIT-COC) and the 2019 forecasted incoming
run-of-river hydro and biomass plants.”
It further stressed
that such was “in view of the extension by the Department of Energy (DOE) for
the installation target for run-of-river hydro and biomass up to December 31,
2019, or its full subscription whatever comes first.”
In its filing, TransCo
manifested an under-recovery of ₱122.7 million; but the ERC said, it opted to
factor in “the actual over-recovery reflected in the books of TransCo as of
October 7, 2019 amounting to ₱6.7 billion.”
The FIT-All is a subsidy charge collected from all consumers that will be used
to incentivize the renewable energy (RE) installations that qualified into the
FIT perks system instituted by the government.
“The FIT-All is a
uniform charge in peso-per-kilowatt hour payable by all electricity users that
is calculated annually,” the ERC has emphasized.
The entities serving as
collecting agents are the distribution utilities, the National Grid Corporation
of the Philippines (NGCP) as well as the retail electricity suppliers (RES),
which in turn will be remitting the collections to TransCo, being the fund
administrator.
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