Posts Uncategorized

LKI 60th Press Statement- Calls on ERC to Dismiss all pending FIT Allowance applications

P.O. Box 1161, QCCPO, NCR, Philippines 1100

Cell No.    : +63 917-812-5546

Email        :



Facebook: Laban Konsyumer Inc.

Website    :


December 18, 2019


( Transco figures show FIT-All rate should actually be reduced by 2 centavos per kilowatt hour with Php 6.54 Billion collection surplus as of end of 2019).

Regarding Transco’s written submission to the ERC on the 2020 Fit-All, consumer group Laban Konsyumer Inc. (LKI) and its President Vic Dimagiba stated that “based on the manifestation we read and analyzed, the FIT-All should actually be reduced by two centavos per kilowatt hour. We believe that the 2019 and 2020 FIT-All petitions of Transco should be dismissed. This will greatly benefit Filipinos and relieve them of the burden of having to pay higher electricity rates because of Feed-In-Tariff Allowance.” Dimagiba had filed today an Omnibus Urgent Motion to the ERC on its prayer (attached).

Dimagiba continued by saying “it was an interesting pleading from Transco, where we realized afterwards that prices should be reduced. What we learned from seeing it now and going over the numbers is that there really is no need for 2019 FIT-Allowance. 2020 FIT-All, in fact, should go down by 2 centavos, as well. We feel that the FIT-All should decrease, as this is an unfair burden on consumers, forcing them to pay for highly priced renewable energy that they are not even sure they are using. The only parties benefitting from this FIT-All are the generation and power suppliers, at the expense of consumers.”

LKI stated “we seek for the new FIT-All rate considering that various factors at the time of the application have already been varied. Assuming all other factors/ variables are constant (as in the application, and if the ERC will decide not to increase the FIT-All rate to the level initially proposed by Transco (P0.2278/kWh) and maintain P0.2226/kWh, Transco will still be able to settle all its obligations with FIT-eligible RE Developers”. 

Dimagiba explained “With the foregoing numbers that we saw, the updated 2020 FIT-All Rate should be reduced by P0.0295/kWh or will become P0.1983 from the FIT-All Rate application of Transco of P0.2278/kWh, assuming the current FIT-All rate of P0.2226/kWh will prevail until the end of the 2019 billing month.”

LKI highlighted “Transco made an update of the assumptions originally used in the application using additional four (4) months actual data for 2019. This yielded an estimated 2019 end-of-year FIT Differential (FD) over-recovery of P6.54 Billion or a reduction from the computed 2020 FD requirement of P0.0711/kWh by the end of December 2019 billing month. This is assuming the current FIT-All rate of P0.2276/kWh will prevail until the end of 2019 billing month. Judging from all these figures, we at LKI firmly believe that the costs that consumers pay for FIT-All should already go down by at least 2 centavos per kilowatt hour, while the FIT-All petition of 2020 would be best dismissed.”

Dimagiba in previous statements has said if ERC takes action and suspends the resolution of the pending applications, ERC will greatly benefit consumers and temper the effects of inflation by providing breathing space from increasing costs.