BAGUIO CITY: Consumers of BENECO will be paying P0. 0619 less in power rates this October billing cycle, compared to their September billing.
The decrease in power rate is due to the latest decision from the Energy Regulatory Commission (ERC) on the Feed In Tariff-Allowance (FIT-ALL) rate application of the National Transmission Corporation (TRANSCO), according to BENECO Non-Network Services Department (NNSD) OIC Manager Engr. Fraiser Angayen.
The FIT-ALL is an incentive program of the government where renewable energy companies are paid at a guaranteed fixed price for the energy they generate and contribute to the grid for a period of 20 years.
It is part of the pass on component of the power bill distribution utilities (DU) like BENECO, collect from their consumers and remitted to government thru TRANSCO.
ERC approved the new FIT- ALL rate P0.0364/kWh which is P0.0619 lower compared to the existing P0.0983/kWh.
According to Angayen, the ERC issued the notice of resolution on ERC case 2021-061RC August 30, 2022. It authorized TRANSCO to collect the new FIT-ALL rate starting on the DUs October 2022 billing month.
Its aim is to encourage power generation companies to produce power using renewable sources like hydro, solar, biomass, among others, and wean the industry from fossil fuel like coal to help the environment.
The reduction of FIT rate will be equivalent to a P5.00 reduction for every 100 kWh usage by consumers of electricity.