By Juzel L. Danganan
MANILA, Jan 7 (PNA) — Energy Regulatory Commission (ERC) Executive Director Francis Saturnino Juan said its office will comply with the Supreme Court’s orders regarding the Feed-In-Tariff (FIT) allowance charge.
“We will await the Court’s action and comply with its directives to ERC,” Juan told PNA in a text message Wednesday.
On Jan 6, Atty. Remigio Michael Ancheta filed a petition before the Supreme Court (SC), which requests the Energy Regulatory Commission (ERC) to stop its previous order allowing National Transmission Corp. (TransCo) to charge an additional Php0.04 per kilowatt hour (kWh).
The SC petition said ERC committed grave abuse of discretion after issuing the FIT Rules and Guidelines, which required an advance collection to pay RE developers.
It estimates the FIT-All fund will total Php 230.12 million per month, resulting in Php 2.7 billion this 2015, based on Transco’s national sales forecast for this year at 68.01 trillion kWh.
Under the FIT system, the FIT all charge serves as payment for Renewable Energy (RE) developers, which will be administered by Transco.
Through an order dated Oct 7, 2014, it was backed by the ERC to result in a pass-on charge to Manila Electric Company (Meralco) customers.
The FIT all is under the FIT system, which is under the “Renewable Energy Act of 2008 (RE Law)” that aims to encourage RE investments in the country.
Renewable Energy Management Bureau (REMB) Director Mario Marasigan maintained the FIT all charge is not Php 8, but is only Php .04 kilowatts per hour (kWh).
However, the REMB head confirmed a typical household consuming 200 kWh per month will reach a total FIT all charge of 8 pesos. It varies depending on the monthly consumption.
Meanwhile, Marasigan refused to comment whether RE investments in the country will be affected, if the SC blocks the FIT charge.
The National Renewable Energy Program (NREP) targets to install 15,304 Megawatts (MW) worth of RE capacity by 2030, which may lessen foreseen expected reserve deficits in the coming years.
The ERC was tasked under the Electric Power Industry Reform Act (EPIRA) to focus on ensuring consumer education and protection and to promote competitive operations in the electricity market.
Meanwhile, TransCo operates and manages the country’s power transmission system that links power plants to the electric distribution utilities nationwide.
It was awarded to the National Grid Corporation of the Philippines (NGCP) on Dec 2007, after it won the bid through an auction held by the Power Sector Assets and Liabilities Management (PSALM), which was tasked by EPIRA to privatize National Power Corporation (Napocor) and TransCo assets. (PNA)