• Transco to apply for 22-centavo FIT-All rate for 2017

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    THE National Transmission Corporation (Transco) will apply for a Feed-in-Tariff Allowance (FiT-All) rate of around 23 centavos per kilowatt hour (kWh) for 2017, a top energy official said on Wednesday.

    Transco will file the rate application next week after the Energy Regulatory Commission (ERC) granted its request for an extension of 30 days from October 31, or until December 1 this year, to file its 2017 FiT-All rate application.

    “I don’t want to burden the consumers to pay the FiT allowance but it is already there,” Energy Secretary Alfonso G. Cusi told reporters on Wednesday.

    Cusi said that the rate application will be around P0.22 per kWh.

    TransCo is a government agency created under Republic Act 9136 or the Electric Power Industry Reform Act (EPIRA) of 2001 and was designated as administrator of FIT-All. It is also required to make an annual determination of the FIT-All rate.

    Under the Renewable Energy Law, FIT-All serves as an incentive for further investments in the renewable energy (RE) sector. FIT-All is a uniform charge billed on all on-grid electricity consumers who are supplied with electricity sourced from qualified renewable energy generators.

    In 2016, the ERC granted Transco’s petition to collect a FIT-All rate of 12 centavos per kWh, while in 2015 the commission approved a rate of 10 centavos per kWh and 4.06 centavos per kWh in 2014.

    The ERC is mandated to conduct periodic reviews to adjust the rate for foreign exchange fluctuations and inflation.

    Based on the provisions of the Renewable Energy Law, renewable energy plants will only receive payment for actual electricity generated, thus eliminating the costly provisions of past take-or-pay contracts that added stranded costs to the consumer’s electricity bill regardless of whether that electricity was used or not.

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