SC upholds DoE, ERC, NREB authority on RE fixed tariff system

The Supreme Court (SC) upheld the authority of the Department of Energy (DoE), the Energy Regulatory Commission (ERC), and the National Renewable Energy Board (NREB) to implement the fixed tariff system for renewable energy (RE).

In a 118-page decision, the SC affirmed Sections 6 and 7 of Republic Act No. 9513, which aim to foster the growth of renewable energy sources.

Section 6 establishes Renewable Portfolio Standards, mandating power suppliers and distribution utilities to source a minimum share of their electricity from renewables, while Section 7 introduces the Feed-In Tariff (FIT) System with incentives for renewable energy developers.

The SC also upheld the advance collection of the FIT Allowance, which is a separate charge on consumers used to support the program, clarifying that it aligns with the law's objective to accelerate the development and use of renewable energy.

Agencies such as ERC and NREB issued resolutions approving tariff rates and guidelines for the FIT System, addressing growing complexities in modern-day energy matters.