DEVANADERA
The Energy Regulatory Commission (ERC) has extended the moratorium on the imposition of interest on the partial or delayed payment of the actual feed-in-tariff (FIT) revenue to eligible renewable energy (RE) plants.
ERC said the moratorium is extended for another six billing periods or until April 2022 to cushion the impact of additional costs to consumers amid the continuing effects of the pandemic to livelihood.
“Hence, eligible RE plants shall not impose any interest or penalty for any partial or delayed payment of the actual FIT revenue to them by the National Transmission Corp., during the said extension period of the moratorium,” said Agnes Devanadera, ERC’ chairperson and chief executive officer, in a statement.
Devanadera said the ERC’s decision was anchored on the projected shortfall in the FIT allowance (FIT-All) fund starting November 2021 to cover the payments of eligible renewable energy plants.
FIT-All is sourced from all electricity consumers to pay the premium of FIT eligible power plants; the government is allowed to yearly evaluate the said charge whether to increase or decrease it as needed.
However, its collection was suspended by the ERC in March last year to provide economic relief to over 19.16 million electricity consumers in the country.
The ERC assured then that the suspension of its collection will not affect payment to FIT eligible RE projects as there is an available balance to service obligations.
The ERC also defended that its current extension of the moratorium is legal especially that FIT Rules specified that the regulatory body may allow an exemption from any provision of rules if good causes are found to be of public interest and is not contrary to law or any other related regulations.
