ERC defers collection of FIT-All charges until Aug 2023
Energy Regulatory Commission (ERC) / STOCK
The Energy Regulatory Commission (ERC) has extended the suspension of feed-in-tariff allowance (FIT-All) collection for another six months starting March this year to provide additional relief to electricity users.
This means power distributors won’t be collecting from their customers the FIT-All charges amounting to P0.0364 per kilowatt-hour from March to August.
“In view of the rising level of inflation and cost of living affecting millions of Filipino households, the ERC re-evaluated the FIT-All Fund balance and found its healthy status, which can sufficiently cover the FIT-All payment requirements for six more months,” said the regulator in a statement on Thursday.
To recall, in November last year, the agency ordered the suspension of FIT-All collection from December last year to February this year to help households saddled with increasing prices of basic goods and services.
FIT-All is a uniform charge levied on consumers and used as an incentive to power generators to develop more environment-friendly energy sources. Among the components of the electricity bill, it seeks to encourage developers to build renewable energy facilities nationwide by assuring them a fixed rate.
The ERC directed distribution utilities, retail electricity suppliers and grid operator National Grid Corporation of the Philippines to report not later than March 31 the status of its implementation of the suspension of the collection of FIT-All charges in the past three months.
“The directive was issued in order for the commission to ensure correct and timely compliance of these said entities, as the collection agents,” it added.
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