The Energy Regulatory Commission (ERC) approved an increase in the feed-in tariff allowance (FIT-All), citing an insufficient buffer fund to support renewable energy (RE) producers. In a 13-page order promulgated on July 31, the ERC authorized the National Transmission Corp. (TransCo) to collect an additional P0.1348 per kilowatt-hour (kWh) starting August, as reported by BusinessWorld.
The FIT-All is a uniform charge passed on to electricity consumers, used to compensate RE developers under the feed-in tariff system. The ERC said the existing buffer fund had become insufficient to meet guaranteed payments to eligible plants, prompting the adjustment to ensure continued support for renewable energy capacity. The new rate takes effect with the August billing cycle, adding to the generation charge already shouldered by consumers.
TransCo, as system operator and administrator of the FIT-All fund, will implement the collection. The increase underscores the rising cost of subsidizing renewable energy as the country expands its use of solar, wind, and other RE sources to meet clean energy targets.