ERC Approves Adjustment in Collection of FIT-All

22 February 2025/ERC-Planning and Public Information Service (PPIS)

PASIG CITY—The Energy Regulatory Commission (ERC) approved the National Transmission Corporation (TransCo)’s application for the Feed-in Tariff Allowance (FIT- All) for 2024, setting the rate at PhP0.1189/kWh. The collection of the adjusted FIT-All will take effect starting March 2025 billing.

During its Regular Commission Meeting on 19 February 2025, the Commission approved a rate lower than the PhP 0.1220/kWh applied for by TransCo, but higher than the current Php0.0838/kWh FIT-All being collected from on-grid consumers.

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 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 payments for the supply to consumers coming from renewable energy (RE) FIT-eligible power plants.

The FIT Differential, representing the difference between FIT rates payable to RE and Wholesale Electricity Spot Market (WESM) prices, was revised from TransCo’s forecast of PhP13,641,077,775 to PhP10,125,029,884. The ERC used actual generation data for January to December 2024, rather than forecasted figures, to ensure a more accurate assessment.

In addition, the ERC’s computations for the Administration Allowance and Disbursement Allowance were based on actual expenses incurred in 2024, rather than TransCo’s projected figures.

The ERC is committed to ensuring that FIT-All rates are fair, transparent, and reflective of actual market conditions. ### See less