The Philippine Electricity Market Corporation (PEMC) and the National Transmission Corporation (TransCo) have adopted new rules governing the collection and disbursement of Feed-in Tariff Allowance (FIT-ALL) Fund.
PEMC president Melinda L. Ocampo and TransCo president Roland T. Bacani signed on Wednesday a Memorandum of Agreement (MOA) to implement the guidelines issued by the Energy Regulatory Commission (ERC).
Under the Guidelines, the PEMC was designated as collection agent and remit proceeds to FIT-All Fund the Wholesale Electricity Spot Market (WESM).
The WESM began commercial operations in Luzon in June 2006 and in the Visayas in December 2010. It is a centralized venue for buyers and sellers to trade electricity as a commodity where its prices are based on actual use (demand) and availability (supply).
TransCo was designated as the FIT Allowance administrator and was tasked to enter into a framework agreement with the PEMC. The agreement shall set out the procedures and accountabilities of the parties in the remittance of WESM proceeds to the FIT-All Fund.
Ocampo said they have been coordinating with TransCo and WESM participants to ensure seamless implementation of the collection and remittance procedures.
This is in accordance with the purposes of the WESM Rules to encourage the use of renewable sources of energy.
“This MOA proves PEMC’s commitment that we are one with the government in its drive to accelerate the utilization of renewable energy resources and its increase in our energy mix toward the achievement of energy security and independence,” said Ocampo.
TransCo, for its part, has been steadfast in pursuing its mandates under the FIT-All Guidelines, taking into consideration consumer interest and investor confidence.
“We at TransCo have been relentless in our effort to ensure information dissemination so that we are able to elicit the understanding of power consumers and other stakeholders on the implementation of the FIT Allowance and, in the process, help promote widespread utilization of renewable energy,” said Bacani.
Starting February this year, consumers were charged with FIT-ALL amounting to four centavos per kilowatt hour (kWh), the application for 2014 to 2015.