• Transco asks ERC to approve 2016 FIT-All

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    The National Transmission Corp. (TransCo) wants to charge electric consumers an additional 10 centavos per kilowatt-hour (kwh) next year.

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    TransCo has filed a petition before the Energy Regulatory Commission (ERC) asking for the approval of P0.1025 per kwh feed-in tariff allowance (FIT-All).

    Transco said the grant of a provisional authority would allow it to enforce the proposed rate adjustment while the ERC reviewed the petition. It also asked for permanent approval “or in the alternative, such other amount as may be found by the Commission to be consistent with the FIT-All guidelines.”

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

    Mandated by the Renewable Energy Law, FIT-All serves as an incentive for further investments in renewable energy (RE) sector. The FIT-All is a uniform charge billed to all on-grid electricity consumers, reflected as a separate component in their monthly bills.

    Under FIT system, RE projects are guaranteed a rate for the electricity they produce per kilowatt-our (kWh) that will be held constant for the next 20 years.

    In October 2014, the ERC approved TransCo’s application for a P0.0406 per kwh FIT allowance charged to customers starting January 2015.

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

    Based on the provisions of RE 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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    1 Comment

    1. The cost of energy has been decreasing all year and yet… here we see another loophole to extract more money from the consumer. EPIRA has always been a fiesta of funding for electrical power producer’s and providers. EPIRA via FIT-All has never resulted in a rate decrease for consumers.