The National Transmission Corp. (TransCo) is seeking the green light of the Energy Regulatory Commission (ERC) for provisional authority to implement starting January 2021 a feed-in tariff allowance (FIT-All) rate of P0.1881 per kilowatt-hour (kWh).
“TransCo most respectfully moves for the immediate issuance of a Provisional Authority to timely implement the FIT-All rate of P0.1881/kWh where the FNS (Forecast National Electricity Sales) was computed based on the FIT-All Guidelines.
Or alternatively, the FIT-All rate of P0.2008 per kWh where the FNS is based on Covid-19 scenario, effective January 2021, without prejudice to the final and actual rate pending the final disposition of its present application,” the state firm said in its application filed with the ERC.
The pandemic, it said, has resulted in a decline in electricity consumption this year. By 2021, TransCo said electricity sales could pick up as the economy gradually reopens.
The FIT-All mechanism was established pursuant to the Renewable Energy Act of 2008 which aims to spur the development of emerging renewable power sources such as wind, solar, run-of-river hydro, and biomass facilities.
Basically, the amount is meant to cover payments to renewable energy (RE) developers, who are assured of a fixed rate per kWh for electricity generated by their projects over a period of 20 years.
TransCo was designated as the FIT-All fund administrator. It is also tasked to make an annual determination of the FIT-All rate and file its application with the ERC not later than end of July each year for the FIT-All rate that will be implemented for the following year.
The current FIT-All rate is P0.0495 per kWh. Consumers pay for this.
TransCo said that grant of a PA will allow it to perform its duties to make a timely payment of the FIT Rate to RE developers to which they are entitled thereby allowing their continued operations.