Consumers should prepare for higher electricity costs next month as the Energy Regulatory Commission (ERC) has approved an increase in the feed-in tariff allowance (FIT-All) rate. The adjustment follows the depletion of the FIT-All Fund due to the continued low prices in the Wholesale Electricity Spot Market (WESM).
In a statement, the ERC confirmed that it granted the National Transmission Corporation (TransCo) approval to raise the FIT-All rate to P0.1189 per kilowatt-hour (kWh) from P0.0838 per kWh during its regular commission meeting on February 19.
The FIT-All is a uniform charge applied to all on-grid electricity consumers and is included in electricity bills to support the growth 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.
“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,” it added.
The ERC also noted that the FIT Differential, which represents the gap between FIT rates payable to renewable energy producers and WESM prices, was adjusted to P10,125,029,884 from TransCo’s earlier estimate of P13,541,077,775, based on actual generation data from January to December 2024.
“The ERC is committed to ensuring that FIT payments are sustained to support the continued development of renewable energy projects while balancing the impact on consumers,” the statement concluded.
