The Energy Regulatory Commission (ERC) has approved a 74.3 percent increase in the feed-in tariff allowance (FIT-All) rate, which will result in higher electricity bills for households starting in November.
The FIT-All rate will rise to P0.2073 per kilowatt-hour (kWh), an increase of P0.0884 from the current P0.1189 per kWh.
This adjustment, following a P0.0351 per kWh increase in March, is necessary to cover a P19.06-billion FIT differential and establish a P3.74-billion working capital allowance for the National Transmission Corporation (TransCo), which manages the FIT-All Fund.
ERC chairman and CEO Francis Saturnino Juan stated that these difficult decisions are necessary to uphold policies regarding the implementation of the FIT system as mandated by law.
FIT-All is a uniform charge imposed on all on-grid consumers for the power generation output of FIT-eligible renewable energy (RE) sources.
The collected FIT-All charges are remitted to TransCo to settle outstanding payments to RE producers and maintain a buffer to avoid delays in future disbursements, as failing to pay may result in claims for interest.
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