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2017 Feed in Tariff Allowance

May 22, 2018
Statement of Laban Konsyumer Inc. (LKI) on another over-recovery of the Feed ?in-Tariff Allowance , flags the Commission on Audit
This is typical example of bad management and utter lack of concern to the wellbeing of all Filipino consumers. Amidst the big oil price hikes the past two (2) weeks and the public clamor to halt the collection of excise taxes on fuel products, the consumers are up in arms with another power rate hike when the Energy Regulatory Commission (ERC) announced over the weekend its decision on the National Transmission Corporation?s (TRANSCO?s) application for the Feed-In Tariff Allowance (FIT-All) for Calendar Year 2017 in the amount of P0.2563 per kWh, which will be implemented starting June 2018 billings.
LKI had requested the top management of Meralco and all private distribution utilities and electric cooperatives in the country to support the deferment of the implementation of the higher FIT Allowance until all legal remedies are exhausted in accordance with the ERC Rules of Practice and Procedures.
At the moment, we have not received the Decision and shall exhaust all legal remedies such as filing of a Motion for Reconsideration and Appeal.
We have pending petitions in the ERC against Transco for over-recovery of at least P .05 for the 2016 Fit Allowance, which was given due course and now subject to notice and hearing by the ERC.
For the 2017 FIT Allowance, no less that the ERC held in its Order dated September 5, 2017 that Transco is limited to justify the amount of P0.22 per kWh. With the 2017 decision, it added to the over-recovery of Fit Allowance by Transco by another P 0.03/kwh which is detrimental to the pockets of the consumers.
We assure the consumers that we shall fight it out to recover the over-recovery of almost P 0.08 per kWh in FIT Allowance or approximate amount of P 6.0 Billion. We are likewise flagging the Commission on Audit to exercise its mandate to audit the collection of Fit Allowance by Transco.
Dimagiba noted that TRANSCO lawyers filed an urgent motion to issue the decision on its 2017 FIT-All rate application on April 11, yet the decision of the ERC was dated February 27, but docketed and published on May 11. This raises an issue of the ?due authencity and genuineness? of the ERC decision.
LKI is a new member of Consumers International, a membership organization for consumer groups around the world. Consumer International is composed of over 200 member organizations in more than 100 countries to empower and champion the rights of consumers everywhere. Dimagiba also acts as Chairman of the International Organization for Standardization (ISO) Consumer Policy Committee (COPOLCO) of the Philippines.
For any inquiries or concerns, you may reach LKI President Vic Dimagiba at 0917-812-5546