According to a statement by OEDC, the move is in adherence to the order issued on 10 October 2014 by the Energy Regulatory Commission (ERC) under ERC case No. 2014-109 RC granting provisional authority (PA) to the National Transmission Corporation (TRANSCO) to implement the Feed-In Tariff Allowance (Fit-ALL) rate of Php 0.0406/kWh effective in the January 2015 billing of all On-Grid electricity consumers.
The PA given to TRANSCO will allow it to perform its duties as a fund administrator and pay the Renewable Energy (RE) Developers on time their entitled Fit rate, thereby ensuring continued production of RE electricity.
The Fit-ALL is a uniform charge akin to the Universal Charge that is imposed on all On-Grid electricity consumers who are supplied with electricity through the distribution or transmission network. The FIT System was established under Section 7 of Republic Act No. 9513, otherwise known as the Renewable Energy Act of 2008 (RE Law).
The setting of Fit Allowance signals the start of the implementation of the Fit System. ERC anticipates that with the Fit System in place, there will be more and more renewable energy companies investing and, thus, develop the renewable energy industry. It should be viewed with optimism that these changes brought about by the development, utilization and commercialization of RE technologies will have a clean and energized future.
OEDC, as one of the designated “Collection Agents” of the Feed-In Tariff Allowance (FIT-ALL) under FIT rules (“Resolution No. 16, Series of 2010, as amended by Resolution No 15., Series of 2012) is obliged to adhere with the above Order of the ERC for the implementation of the collection of the FIT-ALL System to our customers effective FEBRUARY 2015 billing.