ERC defers FIT-All collection
MANILA, Philippines — The Energy Regulatory Commission (ERC) has deferred the collection of Feed-In Tariff Allowance (FIT-All) for one month to lower the electricity rates and provide relief to consumers amid the spread of the coronavirus disease 2019 or COVID-19.
The ERC also said the Wholesale Electricity Spot Market (WESM) will continue to operate amid the government’s declaration of a State of Public Health Emergency throughout the country.
The National Transmission Corp. (TransCo) collects P0.0495 per kilowatt-hour (kwh) from on-grid consumers to pay the renewable energy developers.
“The Commission ordered the suspension of the FIT-All collection to provide some economic relief to the majority of electricity consumers who are mostly daily wage earners,” ERC chairperson and CEO Agnes Devanadera said.
“With the ongoing lockdown situation, most of them were imposed a forced unpaid leave, reduced working hours, or no work-no pay arrangement. The FIT-All suspension will mean a P0.04 per kwh reduction in the electricity bill,” she said.
The ERC estimates that at least 19 million electricity consumers in Luzon, Visayas, and Mindanao will benefit from the reduced electricity rates due to the suspension of FIT-All collection.
This, however, will not affect renewable energy developers’ viability as the FIT-All fund has available balance to service its obligations for the said period of suspension.