Power consumers should gear up for another electricity rate increase as the Energy Regulatory Commission (ERC) orders the recommencement of additional charges that incentivize renewable energy developers, which cost around 3.64 centavos per kilowatt-hour (kWh).
In a report by Inquirer, the ERC would resume the Feed-in-Tariff Allowance (FIT-ALL) by February’s billing cycle due to the anticipated shortfall in the fund.
According to ERC Chair Monalisa Dimalanta, as of January 5, the remaining FIT-ALL budget was estimated to be approximately Php 2.98 billion, with monthly distributions of Php 2.2 billion going toward aiding RE developers.
The ERC chair went on to say that the commission determined there would be a shortfall in the upcoming February 2024 customer payment cycle after reevaluating the fund’s account.
The FIT-ALL fund was established to encourage RE developers to construct more facilities and be one with the country’s goal to increase the fraction of RE in the energy mix.
The standardized charge of Php 0.0364 per kWh, equivalent to Php 7.28 for a household consuming 200 kWh, was approved in August 2022. However, it was temporarily suspended in December 2022 to alleviate the financial strain on Filipinos at a time of escalating electricity prices.