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 Extends Suspension of FIT-All Interest Imposition

The Energy Regulatory Commission (ERC) resolved to extend the moratorium on the imposition of interest or penalty for the partial or delayed payment of the actual Feed-in Tariff (FIT) revenue to the eligible Renewable Energy (RE) Plants. The ERC’s decision was anchored on its projection of a shortfall in the Feed-In Tariff –Allowance (FIT-All) fund starting November 2021 to cover the payments to the eligible Renewable Energy (RE) Plants.

“We have decided to extend the moratorium on the imposition of interest for the partial or delayed payment of the actual FIT revenue for another six (6) billing periods starting from November 2021 to April 2022. Hence, eligible RE Plants shall not impose any interest or penalty for any partial or delayed payment of the actual FIT revenue to them by the National Transmission Corporation (TransCo) during the said extension period of the moratorium”, ERC Chairperson and CEO Agnes VST Devanadera averred.

ERC’s decision to extend the moratorium on FIT-All interest or penalty is its way of showing support to the government’s directive to start opening the economy, and the need to help the public to recover from the severe effects of the Corona Virus Disease 2019 (COVID-19) pandemic in order to avert further hardships and burden to electricity consumers.  

The FIT Rules has specified that: “Where good cause appears, the ERC may allow an exemption from any provision of these Rules, if such is found to be in the public interest and is not contrary to law or any other related rules and regulations.”  

“We are temporarily relaxing the application of our FIT Rules only for the said moratorium period or until April 2022. If the moratorium on the FIT-All will not be extended, the consumers will bear the brunt of paying these penalties and interests should the FIT-All Fund be insufficient to pay the eligible generators,” ERC Chair Devanadera further explained.


 


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