60-day extension of FIT filing sought

By MYRNA M. VELASCO
August 27, 2010, 2:58am

The filing for the feed-in-tariff (FIT) to account for renewable energy (RE) capacity wheeled to end-users may skid to October this year as the Department of Energy (DoE) sought for 60-day extension in complying with the process.

The Energy Regulatory Commission (ERC) formally served notice to the DoE-governed National Renewable Energy Board (NREB) last August 12 on the filing for FIT, but the latter moved that it be given more time to lodge application.

“We wrote them (NREB) and gave them 15 days from receipt which was on August 20. However, they asked for 60-day extension,” ERC executive director Francis Saturnino Juan disclosed.

Energy Secretary Rene D. Almendras told prospective investors in Cebu that the main concern rests with the timing on when the new NREB will be reconstituted, the target for the first meeting of which will be September 9 this year.

“I’ve set a target for NREB to make recommendations on the FIT by end of September and make corresponding filing afterwards. The only thing we can do is recommend and it’s the ERC which will set the final FIT,” the energy chief stressed.

In a separate interview, DoE assistant secretary Mario Marasigan acknowledged that they are still finalizing computations for the FIT Allowance (FIT All), albeit, he echoed that the main reason for the filing extension bid would be to give them more time to re-constitute the NREB following the entry of the new administration.

The challenge for the NREB will be to come up with a levelized tariff for FIT All, and this shall be affordable enough to electricity consumers within the prescribed pass-on period of 20 years via the electric bills.

The rules crafted by the ERC provides for a degression structure, which portends that the FIT may be higher in the initial years and will decrease over time as technology improves or the RE market matures.