Lower power rates seen after FiT-All approval
Credit to Author: Jordeene B. Lagare| Date: Tue, 28 Jan 2020 16:29:10 +0000
CONSUMERS can expect to pay less for electricity soon after the Energy Regulatory Commission (ERC) approved a lower feed-in tariff allowance (FiT-All) that is used to subsidize renewable energy (RE) developers.
In a statement on Tuesday, the power regulator said it authorized the National Transmission Corp. (TransCo) to collect a 2019 FiT-All rate of P0.0495 per kilowatt-hour (kWh).
According to ERC Chairman and Chief Executive Officer Agnes Devanadera, the figure is P0.1976/kWh lower than TransCo’s proposed rate of P0.2471/kWh and P0.1731/kWh lower than the 2018 FIT-All rate of P0.2226/kWh.
“The 2019 FIT-All will result [in] a reduction in the existing FIT-All rate and will increase the consumers’ purchasing power,” Devanadera said.
In computing the 2019 rate, she said they used the actual generation billed and the actual cost recovery rate from January to August 2019, among others.
The approved 2019 rate took into consideration FIT-eligible plants with certificates of compliance for FiT and the run-of-river hydro and biomass plants expected to come in last year.
This is in connection to the Department of Energy’s (DoE) decision to extend the deadline the FiT allocation for biomass and run-of-river hydro until December 31 or its full subscription, whichever comes first.
In its manifestation, TransCo projected under-recovery amounting to P122.7 million, but the ERC used the actual over-recovery reflected in TransCo books worth P6.7 billion as of October 7.
“The approved 2019 FIT-All rate will be charged to all on-grid consumers supplied with electricity through the distribution or transmission network starting the immediately succeeding billing period following TransCo’s receipt of the ERC decision,” she said.
TransCo is yet to receive that decision.
The FiT program, as outlined in the Renewable Energy Act of 2008, aims to accelerate the development of RE sources. These include wind, solar, ocean, run-of-river hydropower and biomass.
The FIT-All is a uniform charge in PhP/kWh payable by all electricity users that is calculated and set annually. Distribution utilities, the National Grid Corp. of the Philippines and retail electricity suppliers are the collecting agents.
The FIT-All Fund is administered by TransCo.