The Energy Regulatory Commission (ERC) of the Philippines has approved a request from state-owned National Transmission Corp. (TransCo) to increase the feed-in tariff allowance (FIT-All) from PHP 0.1189/kWh to PHP 0.2073/kWh.

The FIT-All is a levy on electricity consumers that helps fund incentives for renewable energy producers under the country’s Feed-in Tariff Program. ERC described the new rate as a “balance” between ensuring timely payments to renewable energy developers and minimizing the additional financial burden on consumers.

“It ensures there is enough money to pay renewable energy producers on time, while also minimizing the additional cost passed on to consumers in the form of interest payments to these producers,” ERC said in a statement.

The adjustment accounts for funds needed to settle a PHP 19.06 billion FIT differential and establish a PHP 3.74 billion working capital allowance, which serves as a financial buffer to guarantee prompt payments to renewable energy producers.

As of early September, the ERC reported that 97.6% of FIT obligations had been paid, amounting to PHP 215.27 billion.

To strengthen transparency and accountability, ERC also announced an immediate audit of the FIT-All fund’s management. All related entities—including grid operators and distribution utilities—have been instructed to make their financial records available for review.

According to data from the International Renewable Energy Agency (IRENA), the Philippines’ cumulative solar capacity surpassed 2.9 GW by the end of 2024, reflecting the country’s growing commitment to renewable energy expansion.