Households can expect to pay more for electricity starting in November, as the Energy Regulatory Commission (ERC) on Monday, October 20, announced a higher feed-in tariff allowance (FIT-All) rate, following the application of the National Transmission Corporation (TransCo).
According to the ERC, the FIT-All rate — a uniform charge collected on consumers to pay renewable energy producers — will be increased by 8.84 centavos to P0.2073 per kilowatt-hour (kWh) from the previous rate of P0.1189 per kWh.
The new rate takes into account the required funds to settle a P19.06-billion FIT differential and build a P3.74-billion working capital allowance, which serves as a buffer to ensure timely payments to the renewable energy products.
It covers outstanding payments, and maintains a small buffer fund to prevent delays in future payments to renewable energy producers.
The ERC said the decision was made after it conducted public hearings across the country and reviewed the application of TransCo, which manages the Fit-All Fund.
“This decision is a careful balance. It secures the growth of renewable energy that our country needs while keeping electricity rates affordable for every Filipino household and business,” ERC chairperson and chief executive officer Saturnino Juan said on Monday.
“This move reflects the ERC’s dual commitment to protecting consumer interests and advancing the Philippines’ sustainable energy future,” he added.
The ERC added: “The approved rate is a balance: it ensures there is enough money to pay RE producers on time, while also minimizing the additional cost passed on to consumers in the form of interest payments to these RE producers.”
Earlier this month, the Pangilinan-led Manila Electric Company (Meralco) already announced upward adjustments due to the increase in generation charges for October. (GMA Integrated News)
