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Energy Regulatory Commission (ERC) has approved the National Transmission Corporation’s (TransCo’s) application a higher rate for the feed-in tariff allowance (FIT-All) resulting in an increase in electricity rate in March.

In a statement, ERC said the depletion of FIT-ALL fund due to the sustained low prices in the wholesale electricity spot market (WESM) hike FIT-ALL rate to P0.1189 per kilowatt-hour (kWh) from P0.0838 per kWh.

“The lower-than expected WESM prices adversely affected the fund’s capacity to cover the FIT payments, necessitating adjustments in the FIT-ALL computation to ensure the payments for the supply to consumers coming from renewable energy (RE) FIT-eligible power plants,” ERC said during the regular commission meeting last Wednesday, February 19.

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The ERC said the FIT Differential — the difference between FIT rates payable to RE and WESM prices — was revised to P10,125,029,884 from TransCo’s forecast of P13,541,077,775, based on actual generation data from January to December 2024.

“The ERC is committed to ensuring that FIT-ALL rates are fair, transparent, and reflective of actual market conditions,” it said.

The Manila Electric Company (Meralco) this month already raised its household electricity rate by 28.34 centavos to P12.0265 per kWh.