ELECTRICITY RATES TO HIKE IN MARCH

EXPECT an increase in power rates next month.

This after the Energy Regulatory Commission (ERC) approved higher rates for the Feed-In Tariff allowance (FIT-All).

According to the ERC, it set a new rate of P0.1189 per kilowatt-hour or a 42-percent increase from the current P0.0838 per kWh FIT-All collection.

The increase in power rate, which will take effect  starting with the March billing, is lower than the P0.122 per kWh applied for by state-run National Transmission Corp. (TransCo).

FIT-All , a component of the electricity bill, is a uniform charge imposed on all on-grid power consumers to support the development and promotion of renewable energy (RE) in the country.

In approving the increase, the ERC noted the depletion of the FIT-All Fund due to sustained low prices in the Wholesale Electricity Spot Market (WESM).

It said that the lower-than- expected WESM prices adversely affected the fund’s capacity to cover the FIT payments, necessitating adjustments in the FIT-All computation to ensure payments for the supply to consumers coming from renewable energy (RE) FIT-eligible power plants.

The FIT Differential, representing the difference between FIT rates payable to RE and Wholesale Electricity Spot Market (WESM) prices, was revised from TransCo’s forecast of P13,641,077,775 to P10,125,029,884.

The ERC said it used actual generation data for January to December 2024, rather than forecasted figures, to ensure a more accurate assessment.

The commission further explained that it approved the imposition of the FIT-All charge in February 2015 to support the FIT program.

However, it suspended the collection from December 2022 until January 2024 to alleviate the burden of Filipinos amid the rising cost of electricity.

The ERC lifted the suspension due to the projected deficit in the FIT-All Fund.