towards Sheldeen Joy Talavera, Reporting
Consumers could see higher electricity bills starting next the moon as the ruling power Commission (Erc) allowed a New-to-Red-in Tariff Supply (Fit-All) to renewable engineering payments (Re).
At a press conference on Monday, the ECR Chairman and CEOefICER FRANCIS SATURININO C. Juan said the Commission approved a new rate of P0.2073 per kilowatt-hour (kWh), higher than the P0.1189 per kWh previously set.
“Under the rules of the tax supply system issued by Erc, the relevant plants are guaranteed to be paid the agreed price. And if they are already committed and this is responsible,” said Mr. Juan.
FIT-All is not a uniform fee charged to all electricity consumers on the grid to support the development and promotion of renewable energy.
Payments are made to FIT-TONKE, a fund established and managed by the National Transfer Corp. (Trankco). The fund goes towards paying eligible developers who have received fixed amounts of electricity produced by their projects.
As the administrator, Trampco is tasked with submitting an application before the ERC to determine the appropriate annual amount.
Erc said it has conducted a nationwide public hearing and “carefully reviewed” the request from Transco.
“This decision can be carefully considered. It protects the growth of renewable energy that our country needs, while maintaining the level of electricity available to every house in the PhilippinesTake care of business,” said Mr. Juan.
According to erc, the new price includes outstanding payments and keeps a small buffer fund to prevent delays in future payments for producers.
Funds are needed to settle the difference of P199.06 billion ready to reconcile the P3.74 billion project, which serves as a buffer to ensure timely payments to producers.
The ERC orders an immediate audit to ensure that the FIT-TIL FUND is properly managed. All parties involved, including grid operators and energy distributors, are directed to make their records available for this review.
The National Association of Electrical Consortium (Nasesecore) has called for full transparency and accountability on FIT-FADE-FADE
In a statement posted BusinessworldThe consumer group asked the erc to release the annual audit of the FIT-TORD fund and provide detailed explanations of the calculations used to determine any deficit that requires adjustment of the measure.
Nasecore also called on the Regulator to consider other means of refinancing without putting too much financial pressure on consumers.
“Transparency is not an option; it is a legal and moral obligation. If Erc fails to issue audit books and be credible,” Nasesecore President Patnilo L. Ilagan said.
One is leaving
Erc has also approved the proposed investment of the electricity market of the Philippines (IEMOP) covering the period 2025 to 2027 to improve the performance of the electricity market (wesm).
The new market fee of P0.0071 per kWh per KWH is the cost of commenting and using the Wesm, which will be collected from generators that move to the spot market.
The approved amount covers the operational, administrative, and operating budget of Iemop both as the market operator and the Philippine Electricity Market Corp. (PEMC), which is the governing body of Wesm.
According to the erc, the market capital ensures a “reliable and transparent Wesm,” as it provides cost forecasts to producers and ensures the integrity of critical market functions such as prices, payments, and data reporting.
Distribution includes critical development and cyberses development.
“This approval is a key step in the continued evolution of the electricity market. It ensures Iemop and PEMC can operate stably and fulfill their capacity, the balancing requirements that require consumer response,” said Mr Juan. “This decision is part of our ongoing efforts to develop a secure, competitive, and consumer-friendly energy industry.”
Wesm is where power companies can buy power when their long-term power supply is insufficient for customers’ needs.
