The Energy Regulatory Commission (ERC) has granted the National Transmission Corporation (TransCo) provisional authority to collect a higher Feed-in Tariff Allowance (FIT-All) rate starting this month. The rate will rise to P0.3359 per kilowatt-hour (kWh) from the existing P0.2011 per kWh, marking an increase of P0.1348 per kWh. This adjustment covers the approved working capital allowance (WCA) rate update.
FIT-All is a charge collected from all electricity consumers to fund the premium payments for renewable energy projects that qualify for government incentives. The rate is reviewed annually and may be adjusted up or down based on assessments. TransCo manages the FIT-All fund as its administrator.
The ERC said the adjustment is needed to ensure steady and timely payments to eligible renewable energy plants under both the feed-in-tariff scheme and the Green Energy Auction. Data shows the current rate generates around P1.80 billion in average monthly collections, while the fund faces average monthly obligations of roughly P1.90 billion. This gap has created an ongoing cash flow shortfall, leaving the existing rate insufficient to meet payments and maintain the required working capital allowance.
Regulators noted the provisional approval is meant to protect the financial stability of the FIT-All Fund, but it does not represent a final decision on the rate change. The ERC will continue reviewing evidence from ongoing proceedings and may revise, confirm, or cancel parts of the adjustment later. Any over-collected or under-collected amounts from this provisional rate will be corrected, refunded, or recovered once the final ruling is issued.
