The Philippine Energy Regulatory Commission (ERC) has lowered the 2019 feed-in tariff (FiT) allowance by 78%, from PHP22.26c/kWh (US$0.44c/kWh) in 2018 to PHP4.95c/kWh (US$0.1c/kWh) in 2019. The National Transmission Corporation, which collects the allowance to subsidize renewable energy developers, had proposed a rate of PHP24.71c/kWh (US$0.48c/kWh). The approved 2019 rate took into consideration FiT-eligible power plants with Certificate of Compliance for FIT (FIT COC) and the run-of-river (ROR) hydropower and biomass power plants that were expected to be commissioned in 2019, as the Department of Energy (DOE) aimed to extend the installation target for run-of-river hydropower and biomass power plants until 31 December 2019.
Feed-in tariffs were introduced as an uniform charge in 2008 in the Philippines to accelerate the development of renewable energies and apply to wind, solar, run-of-river hydro, and biomass power plants. The feed-in tariff allowance is payable by all electricity users and the 2019 feed-in tariff will be charged starting the immediately succeeding billing period following the decision. The lower FiT will result in lowering charges for electricity consumers. In 2018, the average price of electricity was US$15.6c/kWh for households.
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