The National Transmission Corp. (TransCo) and the Independent Electricity Market Operator of the Philippines, Inc. (IEMOP) signed a memorandum of agreement (MOA) to establish a structured system to administer the feed-in-tariff allowance (FIT-All) and Green Energy Auction Allowance (GEA-All) funds.
The MOA basically reinforces TransCo’s role as the administrator for both funds, specifically handling the collection and remittance of Wholesale Electricity Spot Market (WESM) proceeds. IEMOP is the WESM operator.
At the same time, the MOA boosts coordination and data sharing between TransCo and IEMOP to ensure transparency and accuracy in national renewable energy (RE) programs.
‘The agreement establishes a comprehensive operational framework for the administration of both the FIT-All Fund and the GEA-All Fund, particularly in the collection and remittance of WESM proceeds. It reinforces TransCo’s mandate… while clearly defining the roles and responsibilities of both organizations in ensuring the efficient implementation of these RE support mechanisms,’ the state firm said.
The MOA aligns with the Renewable Energy Market (REM) Rules, which require TransCo to provide data necessary for FIT allocation and support the issuance and verification of Renewable Energy Certificates (RECs).
The MOA was signed by TransCo President and CEO Joseph Omar A. Castillo and IEMOP President and CEO Robinson P. Descanzo.
‘The partnership underscores the shared commitment of TransCo and IEMOP to strengthening institutional collaboration, promoting transparency and accountability in the administration of RE funds, and ensuring the effective implementation of the country’s renewable energy policies,’ they said.
The FIT-All is a uniform charge billed to all on-grid electricity consumers, reflected as a separate component in monthly electricity bills, to cover payments to RE developers who are assured of a fixed rate per kilowatt hour for electricity generated by their projects over 20 years.
Meanwhile, GEA-All is a uniform charge collected from electricity consumers to fund payments to RE developers participating in the government’s Green Energy Auction Program, supporting the country’s transition toward a cleaner and more sustainable energy future.
Last month, the ERC announced that it extended the temporary suspension of the collection of the GEA-All for the July and August billing months as part of its efforts to help ease electricity costs for Filipino consumers amid prevailing economic challenges.