Republic of the Philippines

ENERGY REGULATORY COMMISSION

A world class and independent electric power industry regulator that equitably promotes and protects the interests of consumers and other stakeholders, to enable the delivery of long-term benefits that contribute to sustained economic growth and an improved quality of life.


ERC Issues Final Decision on 2016 FIT- Allowance

The Energy Regulatory Commission (ERC) issued its final approval of the petition of the National Transmission Corporation (TransCo) for a Feed-in Tariff Allowance (FIT-All) for Calendar Year 2016.  The additional FIT-All adjustment to be collected from all on-grid customers is PhP0.0590/kWh, from the current rate of PhP0.1240/kWh.  The adjustment will take effect in the immediately succeeding billing period following TransCo’s receipt of the ERC Decision.      

The FIT-All is a uniform charge that is calculated annually and is applied to the kilowatt-hours billed to all on-grid consumers that are supplied with electricity through the distribution or transmission network.  The FIT-All mechanism was established pursuant to the Renewable Energy Act of 2008 which aims to spur the development of renewable power sources such as wind, run-of-river hydro, solar, and biomass facilities. 

The ERC took cognizance of the need to update the FIT-All rate in order to address the inability of the FIT-All Fund to pay in full the claims of FIT-eligible Renewable Energy (RE) Generators.  As of April 25, 2017, the total FIT revenue claim was about PhP24.3 Billion, of which only 72.69% has been paid, while the total unpaid claims amounted to some PhP6.6 Billion.  As a result, the FIT-All Fund incurred late payment interest charges equivalent to PhP230 Million.

The ERC also noted several factors that contributed to the insufficiency of the fund to pay the FIT revenues, among others the 30% growth in the generation capacity of FIT-eligible generators from December 2016 until March 2017.  Consequently, the FIT differential claim has increased and will continue to increase.  In addition to that, there is a growing disparity between the Forecast Cost Recovery Rate (FCRR) and the Actual Cost Recovery Revenue (ACRR) due to the downward trend in the market prices brough about by the Merit Order effect. Moreover, collection efficiency of the FIT-All Collection Agents have deteriorated, thus contributing to the deficiency in the FIT-All fund.  

“It is crucial to adjust the FIT-All rate being charged to all end-users to enable TransCo to pay FIT-eligible RE plants and stop the ballooning interest to be charged by RE generators from the unpaid claim due to the delay in the disbursement of the FIT,“ Officer-In-Charge (OIC) Commissioner Alfredo J. Non explained.  


 

Today at ERC
Thursday, June 22, 2017

Hearing Schedules
Time:
10:00
Case No.:
2017-014 RC [JU] [EX] [PT] [EV]
Applicant:
MERALCO & Solar Philippines Tanauan Corporation (SPTC)
Venue:
ERC Hearing Room
Title:
Application for the Approval of the Power Supply Agreement (PSA) Between Manila Electric Company (MERALCO) and Solar Philippines Tanauan Corporation (SPTC) with Motion for Confidential Treatment of Information
Time:
10:00
Case No.:
2016-209 RC [JU] [EX] [PT] [EV]
Applicant:
SAMELCO II & SMEC
Venue:
SAMELCO II’s principal office at Paranas, Samar
Title:
Application for Approval of the Power Supply Agreement (PSA) Between Samar II Electric Cooperative, Inc. (SAMELCO II) and San Miguel Energy Corporation (SMEC), with Prayer for the Issuance of Provisional Authority
Time:
13:00
Case No.:
2017-027 RC [JU] [EX] [PT] [EV]
Applicant:
MERALCO
Venue:
ERC Hearing Room (15th Floor)
Title:
Application for Authority to Implement the Proposed Capital Expenditure Program for Regulatory Year (RY) 2018, with Prayer for Provisional Authority
Time:
14:00
Case No.:
2016-056-CC 
Applicant:
Danilo S. Laguna
Venue:
ERC Conference Room, 10th Floor, Pacific Center Building, San Miguel Avenue, Pasig City
Title:
Danilo S. Laguna vs. Manila Electric Company
Time:
15:30
Case No.:
2016-161 RC [EV]
Applicant:
MERALCO
Venue:
ERC Hearing Room (15th Floor)
Title:
Application for Approval of Emergency and/or Urgent Major Capital Expenditure (CAPEX) Projects

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