The Energy Regulatory Commission (ERC) has approved a new Feed-in Tariff Allowance (FIT-All) rate of PHP0.2073 per kilowatt-hour (kWh) for 2025 to ensure continued support for renewable energy (RE) projects under the Feed-in Tariff Program. The new rate will take effect starting November 2025 electricity bills.

The FIT-All is a small universal charge included in every consumer’s electric bill. It serves as a collective fund that pays renewable energy producers—such as wind, solar, hydro, and biomass—a fixed rate for the electricity they generate. The system encourages investment in clean energy while helping stabilize power supply and reduce dependence on imported fuel.

The ERC said it reviewed the application filed by the National Transmission Corporation (TransCo), which administers the FIT-All fund, and conducted public hearings nationwide. The approved rate aims to balance two objectives: ensuring that renewable energy developers are paid on time, and avoiding a larger increase in future power costs due to interest payments on delayed obligations.

“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,” said ERC Chairperson Atty. Francis Saturnino C. Juan. “This move reflects the ERC’s dual commitment to protecting consumer interests and advancing the Philippines’ sustainable energy future.”

The new FIT-All rate covers remaining payables and maintains a small buffer fund to prevent delays in payments to renewable energy developers. According to TransCo’s report as of September 5, 2025, 97.6% of all FIT obligations have been settled, amounting to PHP215.27 billion in payments. The updated rate includes provisions to settle a PHP19.06-billion differential and to build a PHP3.74-billion working capital allowance for timely disbursements.

ERC officials explained that the October decision marks the second FIT-All adjustment for the year. A previous PHP0.035/kWh increase, approved in February and implemented in March, was needed to catch up with earlier payment shortfalls. The new adjustment brings the total increase for 2025 to about PHP0.1235/kWh.

During the press briefing, ERC clarified that maintaining a stable FIT-All rate prevents larger financial strain later on. If payments to renewable plants are delayed, the unpaid amounts accrue interest, which then could eventually raise power rates for all consumers.

To strengthen fund transparency, the Commission has also ordered an immediate audit of the FIT-All fund, directing TransCo, grid operators, and distribution utilities to also make all financial records available for review.

Juan said the new rate and accompanying audit are part of ERC’s continuing effort to promote renewable energy development while ensuring that market mechanisms remain transparent, accountable, and sustainable.

“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. This move reflects the ERC’s dual commitment to protecting consumer interests and advancing the Philippines’ sustainable energy future,” he concluded.

How do you feel about the ERC’s decision to adjust the FIT-All rate in support of renewable energy projects while maintaining oversight on consumer costs?

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