29Republic of the Philippines
ENERGY REGULATORY COMMISSION
San Miguel Avenue, Pasig City
IN THE MATTER OF THE
APPROVAL OF THE FEED-
IN TARIFF RATE ALLOWANCE
FOR CALENDAR YEARS 2020
AND 2019 ERC CASE NO. 2019-056 RC PURSUANT TO THE ERC CASE NO. 2018-085 RC
GUIDELINES FOR THE
COLLECTION OF THE FEEDIN TARIFF ALLOWANCE
AND DISBURSEMENT OF
THE FEED -IN TARIFF
ALLOWANCE FUND, WITH
PRAYER FOR PROVISIONAL AUTHORITY
NATIONAL TRANSMISSION CORPORATON (TRANSCO), Applicant.
LABAN KONSYUMER INC. (LKI), Oppositor/lntervenor.
URGENT OMNIBUS MOTION TO DISMISS 2019 AND 2020 FIT ALL APPLICATIONS
The Oppositor / Intervenor LKI through counsel respectfully pleads as follows:
1. LKI received on December 12, 2019 a copy of the Reply of the Applicant and in paragraph 22, the Reply stated that “with the foregoing, the updated FIT ALL rate for 2020 will be reduced by Php 0.0295 /kwh or will become Php 0.1938/kwh from the Fit -All Rate application of Php0.2278, assuming that the current FIT —ALL rate of Php 0.2226 /kwh will prevail until the end of the 2019 billing month and that Transco will enjoy a Php 6.54 Billion surplus by end of 2019 ‘l.
2. The express admission by the Applicant should prompt the Honorable Commission to decide swiftly AND DISMISS all pending FIT-ALL rate applications for lack of cause of action.
3. Further. The Commission can moto proprio REDUCED the FITAllowance to the amount pleaded by LKI of Php 0/1875/kwh, and not the Applicant admitted rate of Php 0.1983/kwh.
4. Based on the manifestation we read and analyzed, the FIT-AII rate should actually be reduced by two centavos per kilowatt hour. We believe that the 2020 FIT-AII petition of Transco should be dismissed promptly. This will greatly benefit Filipinos and relieve them of the burden of having to pay higher electricity rates because of Feed-InTariff Allowance.
5. 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. The 2020 FIT-AII, in fact, should go down by 2 centavos, as well. We feel that the FIT-AII 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-AII are the generation and power suppliers, at the expense of consumers.
6. The data on Collections, status of Over recovery, interests and payments were all requested by LKI in the cross examination of Ms. Rogelyn Ronquillo. It was a lawyer’s slight or insult on the part of the counsel on record of the Applicant to omit any credit and reference to such request of LKI but instead specifically submitted the reply addressed to MERALCO. The transcript of records bear that LKI was the first to cross examine the witness in the presence of Atty. Jose Paras who presided the direct examination and requested the information from the witness.
7. LKI submitted a Verified Petition as Oppositor /intervenor with Motion to Dismiss on September 6, 2019, Annex “A”, which had been pending resolution by the Commission. In said Verified Petition, we pleaded to dismiss the 2020 FIT-ALL rate application and to determine whether consumers are entitled to rebate on the interest earned on the surplus of FIT —ALL collections.
LKI repleads and reiterates all the allegations and prayers of the Verified Petition.
8. We seek for the new FIT-AII 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-AII rate to the level initially proposed by Transco (PO.2278/kWh) and maintain PO.2226/kWh, Transco will still be able to settle all its obligations with FIT-eligible RE Developers.
9. 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 PO.0711/kVVh by the end of December 2019 billing month. This is assuming the current FIT-AII rate of PO.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-AII should already go down by at least 2 centavos per kilowatt hour, while the FIT-AII petition of 2020 would be best dismissed.
WHEREFORE, LKI respectfully prays that the 2019 and 2020FIT _ALL rate applications be DISMISSED promptly, that the FIT —ALL rate be reduced to Php 0.1875/kwh and that consumers be entitled to rebate of interests earned on the Php 6.54 Billion surplus.
December 17, 2019, Quezon City
No. 5, Elgin Street, Brgy. Fairview, Quezon City, 1118
REPU BLIC OF THE PHILIPPINES
ENERGY REGULATORY COMMISSION
Pacific Center Building, San Miguel Avenue,
Ortigas Center, Pasig City, Metro Manila
IN THE MATTER OF THE
APPLICATION FOR APPROVAL OF THE FEED-IN TARIFF ALLOWANCE FOR CALENDAR YEAR 2020 PURSUANT TO THE GUIDELINES FOR THE COLLECTION OF THE FEED-IN TARIFF ALLOWANCE AND DISBURSEMENT OF THE FEED -IN TARIFF ALLOWANCE FUND, WITH PRAYER FOR PROVISIONAL AUTHORITY.
ERC CASE NO. 2019-056 RC
NATIONAL TRANSMISSION CORPORATION (TRANSCO)
LABAN KONSYUMER INC. (LKI)
Oppositor / Intervenor
VERIFIED PETITION AS OPPOSITOR/INTERVENOR WITH MOTION TO DISMISS
The Oppositor / Intervenor LKI through its Assistant Corporate Secretary assisted by Counsel respectfully pleads as follows:
1. The 2019 FIT All petition is still pending decision by the Honorable Connmission, yet, TransCo had publicly stated in media that they possess a surplus of Php 3.0 Billion on its FIT ALL collections and has enough financial leeway to pay the current FIT All claims of all RE developers- (MANILA BULLETIN JULY 21, 2019 by Ms. Myrna Velasco).
2. The surplus of Php 3 Billion is explained as follows:
“FIT Differential (FD) Under-Recovery shrunk by 96%, MT-All rate must reflect the significant reduction”
On 30 July 2018, National Transmission Corporation (TransCo) filed an Application for the approval of a Feed-in-Tariff Allowance (FIT-AIL) for 2019 of PhP0.2780/kWh- The parameters in their Application used data as of May 2018. However, updated parameters were presented by TransCo in their Manifestation to the ERC dated 04 March 2019. Since full-year actual 2018 data was already available, TransCo recalculated the 2019 FIT-AIL rate using the updated parameters.
If we look closely at the updated parameters, most had minor movements, except for FIT Differential (FD) Under Recovery which dropped by more than Php3.5 B from May to December 2018:
A. RE Plants Included No Change in line-up. Just an update on category, i.e., from REs with Effective REPA Not
Yet Billing to REs Wilh Billing; change in timing of billing
B. Billin Period Actual up to May 2018 Actual up to December 2018
C. Energy Generation,
2018 3,173,335 -2.8%
D. Collection Data Actual FIT-AII Collection until June 2018 Actual FIT-AII Collection until December 2018
E. Average CPI 151.5083 152.2083 0.5%
12 monLhs ending May
2018 12 months ending June 2018
r. ACRR of DUs
already billing P4.8796/kWh 1>5.2146 kWh 6.9%
12 months ending May
2018 12 months ending December
G. PEMC 36-monlh
Lu zon P3.3506/kWh P3.2782 kWh -2.2%
Visavas P3.2210/kWh P3.1240/kWh -3.0%
H. FD Under
Recovery, PHP -96.6%
I. FacLor Rate 9.3937% 9.4969% 1.1%
The significant reduction in the FD Under Recovery component means that TransCo practically eliminated their under recoveries by end-2018 at the current FIT-AII rate of Php 0.2563/ kWh. TransCo’s numbers show that the rate of reduction of the FD Under Recovery was around Php 504 million per month. If the current FIT-AII rate is allowed to continue, the FIT program will begin overcharging by Php504 million per month from consumers nationwide. Thus, the FIT-AII rate and its burden on consumers must be reduced.
TransCo’s Forecast National Sales (FNS) for 2019 of 87,951 GWh is equivalent to sales of 7,329 million kWh per month. To remove the Php 504 million per month overcharge from consumers, the FIT-AII rate must be reduced by Php 0.0688/ kWh to Php 0.1875/kWh.
The reduced under recoveries is a good indicator of TransCo’s management of the FIT collection and payment to RE suppliers. However, the FIT-AII rate must not overcharge consunlers. A FIT-AII rate of Php0.1875/kWh will allow TransCo to pay RE suppliers in a timely manner. Hence, ERC must ensure that all updated data are considered in TransCo’s application and that a reasonable FIT-AII rate is ultimately approved.”
3. However, the Honorable Commission approved a reduced FIT All for 2018 in the amount of Php 0.2226, and thus further contributed to Transco healthy FIT ALL collections and financial position. The application for a marginal increase of Php 0.0052 kWh for 2020 should be set aside until Transco submits to the Honorable Commission an updated FIT ALL collections as of filing of the application. The updated report can show whether the 2019 FIT ALL petition as well as the instant 2020 FIT ALL applications be distnisséd for lack of cause of action.
4. The foregoing was submiited to the Commission in LKI I s Urgent Rejoinder to the 2019 FIT All petition dated March 22, 2019, which should be part of the record of the 2019 application.
5. LKI observed the Php 6 billion increase in the forecast national sales from 2019 to 2020, whereas the 2018 and 2019 electricity sales are almost identical at 86 B kWh. The Commission should carefully evaluate the assumptions and basis for the forecast.
6. The 2019 FIT ALL applications had been rendered moot and academic as LKI had earlier pleaded in the 2018 FIT ALL petition.
vvHEREFORE, LKI respectfully prays as follows:
1. That the Honorable Commission accepts the entry of LKI as Oppositor and Intervenor in the 2020 application.
2. That the 2020 FIT ALL applica tion be dismissed for lack of cause of as Transco own declaration shows a surplus of Php 3 Billion pesos and with enough surplus topay their FIT ALL obligations to RE developers.
3. That the Commission determines whether consumers should be entitled to interest on the Transco FIT ALL surplus, which are all money from the consumers.
4. Such other equitable relief as the Commission may order in pursuance of its mandate to ensure consumer welfare.
September 05, 2019
ELA ROSA t Corporate Secretary
AT?K. VICTORIO MARIO A. DIMAGIBA AB, LLB,LLM
ROLL ATTY .NO. 24285
PTR NO.7446842,JAN.11, 2019
IBP NO.AR 4719174, JAN. 11, 2019
MCLE 6, COMPLIANCE CERTFICATE UNDER PROCESS
NO. 5 ELGIN STREET, BRGY. FAIRVIEW, QUEZON CITY
EMAI L: firstname.lastname@example.org; email@example.com
l, ANDREW DELA ROSA, of legal ager Filipino, Single and resident of Pinecrest Residential Resort, Newport City, Pasay duly swear as the Assistant Corporate Secretary of Laban Konsyumer Inc., and assisted by Counsel in the opposition and intervention as well as the Motion to Dismiss and the facts alleged therein are true of my
Subscribed and sworn to before maffiant showed his PRC ID No. 21868,03 December 2019, Manila City.
FERDIN . AYAHAO
NOT PUBLIC ec ber31, 2019
Appo• entN0. 106(2018-2019)
For Pasig ity, Pateros and San Juan City
Attorney’s Roll No. 46377
IBP LRN 02459; o.R. No. 535886: 0621-2001 MCLE No. VI-0025705; 04-02-19
PTRN0.5174%5, 01-08-19; Pasig City
4F Goldioop Tower 3 ese Ma. EscrivaDnve
Ortigas Center. Pas;g CiV