CONSUMERS are expected to pay more for electricity next month, as the Energy Regulatory Commission (ERC) has approved a higher rate for the feed-in tariff allowance (FIT-All) following the depletion of the fund due to the sustained low prices in the wholesale electricity spot market (WESM).
The ERC said it approved the National Transmission Corporation’s (TransCo’s) application to hike the FIT-ALL rate to P0.1189 per kilowatt-hour (kWh) from P0.0838 per kWh during its regular commission meeting last Wednesday, February 19.
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.
“In approving the increase, the ERC noted the depletion of the FIT-ALL Fund due to sustained low prices in the Wholesale Electricity Spot Market (WESM),” the statement read.
It added: “The lower-than expected WESM prices adversely affected the fund’s capacity to cover the FIT payments, necessitating adjustments in the FIT-ALL computation to ensure the payments for the supply to consumers coming from renewable energy (RE) FIT-eligible power plants.”
The ERC said the FIT Differential — the difference between FIT rates payable to RE and WESM prices — was revised to P10,125,029,884 from TransCo’s forecast of P13,541,077,775, based on actual generation data from January to December 2024.
“The ERC is committed to ensuring that FIT-ALL rates are fair, transparent, and reflective of actual market conditions,” it said.
The Manila Electric Company (Meralco) this month already raised its household electricity rate by 28.34 centavos to P12.0265 per kWh. (GMA Integrated News)
