Republic of the Philippines

ENERGY REGULATORY COMMISSION

A world class and independent electric power industry regulator that equitably promotes and protects the interests of consumers and other stakeholders, to enable the delivery of long-term benefits that contribute to sustained economic growth and an improved quality of life.


ERC Authorizes TransCo to Augment Deficient Fund

The Energy Regulatory Commission (ERC) authorized the National Transmission Corporation (TransCo) to transfer from the FIT Differential (FD) sub-account of the Feed-In Tariff Allowance (FIT-All) fund to the Cost Recovery Revenue (CRR) sub-account in order to make full payments to FIT-Eligible RE Developers for the billing period affected by the ERC Advisory released on 17 March 2020, and the DOE Issuance dated 18 March 2020.   The ERC and DOE issuances provided a month-long extension on electricity bill payments due to the implementation of the Enhanced Community Quarantine measures.

“The Commission takes cognizance of the current situation where the remittance of the FIT-All was extended in view of the government’s Enhanced Community Quarantine measures, and the need for TransCo to continue paying its FIT obligations to eligible RE plants.  It is for these reasons that we have resolved to grant authority to TransCo to draw the necessary amounts from the FIT Differential sub-account in order to supplement the deficient Cost Recovery Revenue sub-account.  This will enable TransCo to make full payments to FIT-eligible RE developers for the February and March 2020 billing periods”, ERC Chairperson and CEO Agnes VST Devanadera clarified.

The ERC, in its Order dated 25 March 2020, also directed TransCo to ensure that the amount to be drawn from the CRR sub-account, as supplemented by the FD sub-account, should be equivalent to the amount necessary to address the deficiency for the 05 April 2020 and 05 May 2020 payouts to FIT Eligible Plants. In addition, TransCo was also directed to immediately return in full the amount drawn from the FD sub-account upon collection of the Actual Cost Recovery Revenue (ACRR) from the Philippine Electricity Market Corporation (PEMC) and the Host Distribution Utilities (DUs).  Corollary thereto, TransCo was directed to give a full accounting report within fifteen (15) days, from the time amounts are drawn from the FD sub-account to supplement the CRR sub-account, and to report remittances or deposits made to return the amounts drawn.

“Transferring of the fund will enable TransCo to still timely pay the RE developers, ensuring therefore that no interests will be incurred, thus avoiding unnecessary burden to the consumers in their electricity bills”, Chairperson Devanadera further emphasized.

 


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