LKI 15th Press Statement March 27, 2019
FEED IN TARIFF ALLOWANCE CAN GO DOWN TO Php 0.1875/kwh
“The consumer group lauds the rollback as it shows that the ERC is transforming to a pro consumer welfare regulatory body”
Consumer Group Laban Konsyumer Inc. ( LKI ) claims that Feed in Tariff Allowance or called FIT-ALL paid by all classes of electricity consumers nationwide can further go down to Php 0.1875/ kwh from Php 0.2226 / kwh.
Earlier this week, the Energy Regulatory Commission announced a reduction in the Feed In Tariff Allowance for Calendar year 2018 in the amount of Php 0.2226 /kwh from the current Php 0.2563/kwh in ERC Case No. 2017-079. The consumer group participates as an Oppositor and Intervenor in all pending FIT ALL cases in ERC.
As of press time, there is no copy of the Decision available in the ERC website. While waiting for its official copy , the consumer group “ lauds the rollback as it shows that the ERC is transforming to a pro consumer welfare regulatory body”.
Vic Dimagiba , the LKI President , reserves to further comment as to whether the ERC had also authorized a refund of Php 0.0337 /kwh for the calendar year 2018 and year to date in 2019 considering that the consumers had already paid the higher amount of Php 0.2563/kwh in 2018 and the in 1st 3 months of the calendar year, 2019.
The claim for a rollback to Php 0.1875/ kwh was submitted in an Urgent Rejoinder sent to the Energy Regulatory Commission last Friday, March 22, 2019 for the 2019 FIT All application of Transco in ERC Case No. 2018-085 RC.
The Urgent Rejoinder filed by the consumer group was necessary when the
National Transmission Corporation or Transco submitted to the Energy Regulatory Commission on March 6, 2019 a Manifestation showing a reduction of the FIT-ALL Rate applied by Transco to PhP0.2471/kWh from the previous PhP0.2780/kWh that it filed for approval for the 2019 Fit Allowance. LKI received a copy of the Transco Manifestation on March 13, 2019.
Vic Dimagiba, the LKI President said the updated data submitted by Transco shows that at the current rate of Php 0.2563/kwh, Transco practically paid the RE developers their FIT All under recovery by end of 2018.
Illustration:
Php 3,652,998,330.77 – actual fit differential balance as of May 2018.
Php 122,740,061.65 – actual Fit differential balance as of December 2018.
Total Paid- Php 3, 530,258,269.12
On a monthly basis, Transco paid the RE developers the sum of Php 504 million from June to December , 2018 shown as follows:
Php 3, 530,258,269/7 months, i.e. June to December 2018
Equals to Php 504 million per month
Dimagiba pointed out that “maintaining the current approved FIT-All rate of Php0.2563/kWh, the same would show that TRANSCO would have been able to more than fully collect the remaining FD Under Recovery amounting Php 122.7M in just one (1) month Accordingly, in the succeeding months, by still using the approved FIT-ALL Rate of Php0.2563, TRANSCO effectively over-collected Php504 million per month from consumers nationwide from January to March, 2019 .
To prevent TRANSCO from over-collecting the FD Under Recovery to the detriment of all consumers, LKI believes that TRANSCO’s re-computed FIT-ALL Rate of PhP0.2471/kWh should be thoroughly reevaluated and, in lieu thereof, the current approved FIT-All Rate of Php0.2563/kWh be further reduced by Php0.0688/kWh which is the calculated rate necessary to off-set TRANSCO’s Php 504 million over recovery. This translates to a new rate of Php0.1875/kWh. Dimagiba pleaded.
Illustration:
7, 329,000,000 kwh/month X Php 0.2563=Php 1,878,422,700
Less Php 504,000,000= Php 1,374,422, 700
Php 1, 374,422,700 /7,329,000,000 kWh = Php 0.1875 /kWh
Therefore, Php 0.2563- Php 0.1875 = Php 0.0688/kwh
The reduced under recoveries is a good indicator of Transco management of the FIT collection and payment to RE suppliers. However, the FIT all rate must not overcharge the consumers, even at the reduced amount of Php 0.227/kwh .