On-grid consumers may see a 3.51-centavo increase in their electricity bills starting next month after the Energy Regulatory Commission (ERC) approved a higher Feed-in Tariff Allowance (FIT-All) rate.  

The power regulator said over the weekend that the new rate, set at 11.89 centavos per kilowatt-hour (kWh), is higher than the current 8.38 centavos/kWh but lower than the 12.20 centavos/kWh proposed by the National Transmission Corp. (TransCo).  

The ERC said the adjustment was necessary due to the depletion of the FIT-All Fund, which was affected by lower-than-expected prices in the Wholesale Electricity Spot Market (WESM).  

Despite the increase, ERC Chairperson Monalisa Dimalanta assured that the commission will continue to monitor the fund's status and assess its long-term necessity.  

“It can lead to a higher bill depending on the movement in total generation rates. We can assure the public that we continue to monitor the status of the fund and the payments required to our RE FIT suppliers.  

"If the collection is not needed, such as when WESM prices are high, we can suspend implementation similar to what we did in December 2022,” Dimalanta said.  

TransCo administers the FIT-All fund to pay renewable energy developers under the FIT system.  

The ERC temporarily suspended its collection from December 2022 to January 2024 due to the fund’s healthy status and to ease the financial burden on consumers amid rising electricity costs in 2022. The suspension was among the measures the ERC discussed with distribution utilities to help consumers manage the impact of high inflation.  

In determining the new rate, the ERC revised the FIT Differential — the gap between FIT payments and WESM prices — from TransCo’s initial forecast of P13.64 billion to P10.13 billion, using actual generation data from January to December 2024 instead of projected figures. The commission also based its computations for the Administration and Disbursement Allowances on actual expenses incurred in 2024.