Power rates up P0.04/kWh starting Jan. 2015 as ERC OKs TransCo request

Consumers will see their bills go up by P0.04 per kilowatt hour (kWh) in January 2015 after the Energy Regulatory Commission (ERC) allowed state-owned National Transmission Corporation (TransCo) to charge the public for the cost of renewable energy (RE) used under the Feed-In Tariff scheme.

 

In an order dated October 7, the ERC approved TransCo's request last July for the P0.0406 per kWh FIT Allowance to be reflected in end users' bills as a separate item stating Janury 2015 billing.

 

"For this purpose, all distribution utilities, retail electricit suppliers, the National Grid Corporation of the Philippines, are directed to adopt the necessary modifications in their respective billing and collection system," the ERC said.

 

The higher electricity rate is part of the implementation of the Renewable Energy Law promulgated in 2008.

 

In 2012, the ERC approved FIT as an incentive mechanism to "attract new investments in renewable energy" under the RE Law. 

 

The ERC approved rates of P5.90 kWh for hyrdro, P6.63 per kWh for biomass, P8.53 for wind and P9.68 for solar. There is no approved rate for ocean thermal energy yet.

 

Proceeds from FIT will fund the development of renewable energy sources, including wind, solar, biomass and hydropower projects. TransCo is the designated administrator of the FIT Allowance Fund for FIT-eligible renewable energy projects.

 

TransCo is a government agency created under Republic Act No. 9136 or the Electric Power Industry Reform Act (EPIRA) of 2001. It operated and managed the power transmission system that links power plants to the electric distribution utilities nationwide. — RSJ, GMA News