The feed-in-tariff allowance (FIT-All) line item in the electric bills of Filipino consumers will decrease by ₱0.04 per kilowatt-hour (kWh) this year.
According to a Manila Bulletin report, this calculated reduction was based on a reported decision already being routed for the final approval of the Energy Regulatory Commission (ERC) as well as the promulgation and signature of Commissioner and ERC Chairperson Agnes T. Devanadera.
One of the reported factors that affected this reduction is the increase in clearing prices at the Wholesale Electricity Spot Market (WESM) last year.
The FIT-All is the calculated per-kilowatt-hour charge being passed on to consumers’ electric bills, and the collections being channeled through fund administrator National Transmission Corporation (TransCo) are paid to qualified renewable energy (RE) developers for their perspective installations.
In the previous year’s FIT-All approval of the ERC, it noted that it factored in the discrepancy in the plant capacities used by applicant-TransCo versus the actual capacity of the FIT-eligible plants.
According to documents filed within the commission supporting TransCo’s application for FIT-All to be implemented this year, it was revealed that the targeted payout to RE developers would hover at ₱34.95 B until next year
It was also revealed in the report that the required cost recovery of wind installations would be at ₱3.296 B; solar will be at ₱2.346 B; biomass will be at ₱4.890 B; and hydro at ₱3.350 B.
For FIT differentials, estimated amounts to be retrieved for wind facilities will be at ₱6.987 B; solar at ₱5.351 B; biomass at ₱6.275 B; and hydro at ₱1.936 B.
TransCo also emphasized that it will need to pass-on back-billings on the FIT differential component of the Fit-All charges that were piled up from 2016 to 2019.
For next year, it is anticipated that the FIT-All charge may climb back as the FIT-qualified installations for biomass will increase as anchored on the extended deadline of project completions set forth by Energy Secretary Alfonso G. Cusi.