ERC approves PHP 0.2073 FIT-All for 2025

The Energy Regulatory Commission approved a new Feed-in Tariff Allowance rate of PHP 0.2073 per kilowatt-hour for 2025 to ensure continued support for renewable energy projects under the Feed-in Tariff Program, with the rate taking effect starting November 2025 electricity bills.

The FIT-All is a small universal charge included in every consumer’s electric bill and serves as a collective fund that pays renewable energy producers—such as wind, solar, hydro, and biomass—a fixed rate for the electricity they generate to encourage clean-energy investment, stabilize supply, and reduce dependence on imported fuel.

The ERC said it reviewed the application filed by the National Transmission Corporation, which administers the FIT-All fund, and conducted public hearings nationwide to balance timely payments to developers with the need to avoid larger future power costs from interest on delayed obligations.

“This decision is a careful balance. It secures the growth of renewable energy that our country needs, while keeping electricity rates affordable for every Filipino household and business,” said ERC Chairperson Atty. Francis Saturnino C. Juan.

“This move reflects the ERC’s dual commitment to protecting consumer interests and advancing the Philippines’ sustainable energy future.”

The new FIT-All rate covers remaining payables and maintains a small buffer fund to prevent delays in payments to renewable energy developers, according to the Commission.

According to TransCo’s report as of September 5, 2025, 97.6% of all FIT obligations have been settled, amounting to PHP 215.27 billion in payments.

The updated rate includes provisions to settle a PHP 19.06 billion differential and to build a PHP 3.74 billion working capital allowance for timely disbursements.

ERC officials explained that the October decision marks the second FIT-All adjustment for the year after a previous PHP 0.035/kWh increase approved in February and implemented in March to catch up with earlier payment shortfalls.

The new adjustment brings the total increase for 2025 to about PHP 0.1235/kWh, the Commission added.

During the press briefing, ERC clarified that maintaining a stable FIT-All rate prevents larger financial strain later on because delayed payments to renewable plants accrue interest that can eventually raise power rates for all consumers.

To strengthen fund transparency, the Commission ordered an immediate audit of the FIT-All fund and directed TransCo, grid operators, and distribution utilities to make all financial records available for review.

Juan said the new rate and accompanying audit are part of ERC’s continuing effort to promote renewable energy development while ensuring that market mechanisms remain transparent, accountable, and sustainable.

“This decision is a careful balance. It secures the growth of renewable energy that our country needs, while keeping electricity rates affordable for every Filipino household and business. This move reflects the ERC’s dual commitment to protecting consumer interests and advancing the Philippines’ sustainable energy future,” he concluded.

The FIT framework guarantees eligible renewable projects a fixed tariff for a set period while the FIT-All spreads costs across all consumers, and the mechanism has been used internationally to accelerate clean-energy deployment and investment certainty.