SC upholds gov’t authority to implement fixed tariff for renewable energy

The Supreme Court (SC) has affirmed the authority of the Department of Energy, the Energy Regulatory Commission (ERC), and the National Renewable Energy Board (NREB) to determine how the fixed tariff system for renewable energy is implemented under the Renewable Energy Act of 2008.

In a 118-page decision, the SC En Banc upheld the constitutionality of Sections 6 and Section 7 of the Renewable Energy Act of 2008.

Section 6 establishes the Renewable Portfolio Standard, which the court said imposes a requirement to utilize renewable sources. It said that the NREB is tasked to determine the standard.

Meanwhile, Section 7 establishes the Feed-In Tariff (FIT) System, which is meant to provide an incentive for electric power industry participants who produce electricity from renewable energy sources.

The SC said that the agencies issued resolutions approving the tariff rates and issued the FIT Rules and FIT Guidelines.

This prompted several individuals to question the legality of the issuances.

In its ruling, the SC found that the Renewable Energy Act is complete in its terms, making the delegation of legislative powers to the agencies valid.

The SC said that legislative power is delegated to specialized agencies to address growing varieties, complexities, and volume of modern-day matters.

“Thus, this Court upholds the validity of the delegated powers to the ERC and the NREB to implement the provisions on the FIT System and the Renewable Portfolio Standard,” it said.

Meanwhile, the SC also upheld the advanced collection of the FIT allowance.

It said that while electricity from renewable sources must be produced before receiving FIT benefits, the law does not prohibit collecting funds in advance to support the system.

The decision was promulgated in August 2024 and made public in April 2025. — BM, GMA Integrated News