THE Energy Regulatory Commission (ERC) has extended indefinitely the suspension of Feed-in Tariff Allowance (FIT-All) collection beginning next month.
This marks the third consecutive suspension of FIT-All collection since late November last year.
The ERC, in an advisory, said the suspended FIT-All collection is extended for September “until otherwise lifted by the Commission.”
The suspension is originally set to expire by the end of August 2023.
In February, the ERC extended the suspension of the collection of FIT-All until August this year.
The first time that the FIT-All collection was suspended was in November 2022, covering December 2022 to February 2023 to ease the burden of consumers amid high inflation.
The FIT-All is a uniform charge imposed on all on-grid electricity consumers, and is a component of the electricity bill, that ensures the development and promotion of renewable energy (RE) in the country.
The prevailing FIT-All rate is P0.0364 per kWh.
The continued suspension of FIT-All means a reduction of P0.0364 per kWh, which could translate to a reduction of about P7.28 in the monthly bills of typical households consuming 200 kilowatt-hours.
“This decision introduces remedies to ease the financial burden on consumers at the midst of escalating costs of electricity,” the ERC said.
“With the said ERC issuance, the consumers enjoy the benefit of reduced power cost for almost a year now,” the regulator said.
The agency said the “move comes at a crucial time when inflation and the cost of living have been affecting numerous Filipino households.”
Distribution utilities (DUs), the National Grid Corporation of the Philippines (NGCP), and retail electricity suppliers (RES) serve as collecting agents of FIT-All and remit it to the FIT-All Fund, administered by the TransCo.
The FIT-All Fund covers payments to renewable energy developers under the FIT-All mechanism, aimed at spurring the development of emerging renewable power sources such as wind, solar, run-of-river hydro, and biomass facilities. (GMA Integrated News)
