Philippines Raises FIT-All Rate to PHP0.1189/kWh

The Energy Regulatory Commission (ERC) has approved an increase in the Feed-in Tariff Allowance (FIT-All) rate to PHP0.1189 per kilowatt-hour (kWh) for 2024.

The new rate, which will take effect in the March 2025 billing cycle, is higher than the current PHP0.0838/kWh but lower than the PHP0.1220/kWh initially proposed by the National Transmission Corporation (TransCo).

ERC said the adjustment was necessary due to the depletion of the FIT-All Fund caused by low electricity prices in the Wholesale Electricity Spot Market (WESM).

The FIT-All is a universal charge collected from all on-grid consumers to support payments to renewable energy (RE) developers under the Feed-in Tariff system.

When WESM prices drop, funds available to pay RE suppliers also decline, making it difficult to meet financial obligations under the FIT system.

“The FIT Differential, representing the difference between FIT rates payable to RE and WESM prices, was revised from TransCo’s forecast of PHP13.64 billion to PHP10.12 billion,” ERC said in a statement.

To ensure accuracy, ERC used actual generation data from January to December 2024 instead of relying on TransCo’s forecasts.

The commission also adjusted administration and disbursement allowances based on actual expenses in 2024 rather than projected figures.

While the rate hike will result in a slight increase in electricity bills, ERC said it is necessary to maintain financial stability for RE projects and sustain the country’s renewable energy development.

ERC reiterated its commitment to keeping FIT-All rates fair, transparent, and reflective of market conditions to balance consumer costs and RE investment.