Manila: The Energy Regulatory Commission (ERC) has announced an increase in the Feed-in Tariff Allowance (FIT-All) aimed at bolstering renewable energy (RE) projects, effective November 2025. The new rate will be PHP0.2073 per kilowatt-hour (kWh), compared to the current rate of PHP0.1189/kWh under the Feed-in Tariff program.

According to Philippines News Agency, the ERC explained that the FIT-All is a minor charge included in every electricity consumer's bill. This charge accumulates into a collective fund that compensates FIT-eligible renewable energy producers, such as those harnessing wind, solar, and small hydro plants, by offering a fixed, guaranteed price for their energy.

The ERC further elaborated that the program's objective is to encourage more investment in clean energy. This initiative is intended to stabilize the power supply, reduce reliance on imported energy sources, and contribute to environmental protection.

The decision to increase the rate came after several public hearings across the country and was based on a thorough assessment of the National Transmission Corporation's (TransCo) application. TransCo is responsible for managing the FIT-All fund.

The ERC highlighted that the approved rate strikes a balance by ensuring sufficient funds are available to pay RE producers promptly, while also minimizing the additional cost burden on consumers. This approach helps avoid interest payments to RE producers.

The new rate will address outstanding payments and maintain a buffer fund to avert delays in future payments to RE producers. It accounts for the required funds to settle a PHP19.06-billion FIT differential and to establish a PHP3.74-billion working capital allowance, which acts as a buffer to ensure timely payments to the RE producers.