The Energy Regulatory Commission or ERC has indefinitely extended the Feed-in Tariff Allowance or FIT-All collection suspension to slightly help cut power bills and ease consumers’ burden due rising cost of goods.
The power watchdog, on Tuesday, confirmed the suspension of FIT-all “for September 2023 until otherwise lifted by the Commission.”
“This is the third suspension in a row issued by the ERC to provide relief through reduced power cost in the amount of P0.0364/kWh,” the ERC noted.
The suspension of FIT-All collection is one of the immediate interventions the ERC discussed with the distribution utilities to help consumers cope with the high inflation.
Three billing months
In November 2022, the ERC directed the suspension of FIT-All for three billing months from December 2022 until February.
Through another resolution dated 23 February, the ERC extended the suspension further this August to bring relief to the consumers in terms of a lower power rate by P0.0364 per kilowatt-hour.
The order also directed the Distribution Utilities, Retail Electricity Suppliers, and National Grid Corporation of the Philippines to report the status of its implementation from December 2022 to February suspension of collection.
The FIT-All mechanism was established under the Renewable Energy Act of 2008 to boost the development of clean sources like wind, solar, run-of-river hydro, and biomass facilities.
It is a uniform charge in pesos per kilowatt-hour payable by all electricity users calculated and set annually.
The FIT-All fund collected is being administered by the National Transmission Corporation, to cover payments to renewable energy developers under the FIT system.