LKI 2020-080 Press Statement re Feed in Tariff

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December 18, 2020


Consumer Advocacy Group Laban Konsyumer Inc. (LKI)  wrote a letter to the Energy Regulatory Commission (ERC) on December 16, 2020, which  letter  laid the first step to reverse the hefty increases in  Feed in Tariff ( FIT) rate  .The group provided  a summary of the  annual increases that are retroactive to years 2016 till 2020  or ( 5 ) five  years   and that consumers will bear the brunt of higher rates when the  Questioned Resolution is implemented.

 In fact, the National Transmission Corporation or Transco already applied for at least an increase of 18 centavos per kwh  Feed in Tariff Allowance or FIT ALL for 2021.  

Laban Konsyumer  observed that only two ( 2)  members of the ERC who signed the Questioned  Resolution are incumbents and Commissioner Catherine Maceda did not  take part while Commissioners Josefina Asirit  and Paul Cervantes , soon  both left office in  July 10, 2020 and are replaced by two (2 ) new Members. Thus, the implementation of the Questioned Resolution that increased hefty FIT tariff are left at the hands of the minority in ERC. This fact raises   issues of impropriety, delicadeza and absence of quorum   that could be the reasonable grounds for Commissioners Maceda, Digal and Fuentes to cause the ERC to withdraw and recall the Questioned Resolution.”

 Vic Dimagiba explained that “At the onset, we respectfully highlight that the imposition of the abovementioned adjusted FIT rates were issued without notices and hearing and does not comply with the requirements provided for under paragraphs 7 and 8 of ERC Resolution No. 16, Series of 2010, “Resolution Adopting the Feed-In Tariff Rules” (the “FIT-Rules”) in relation to Rule 21 on Rule Making of the ERC RPP in Resolution No. 38, Series of 2006.”

Dimagiba concluded “Just to highlight the additional burden that will again be shouldered by the hapless consumers, it can be seen the already high FIT Rate for SOLAR 1 at P9.68/KWH set in 2014 is further adjusted to a staggering P11.2758/KWH for year 2020.  The same is true for WIND which from the original FIT rate at P8.53/KWH, it now stands at whopping P9.8976/KWH for year 2020.   Easily, these are almost two pesos and more than a peso adjustment for the SOALR and WIND, FIT rate, respectively that will have to be unfairly borne by the consumers.”

The ERC have no more than seven ( 7 ) days to reply  from receipt of  the letter on December 17, 2020 under Republic Act No. 11032 or the Anti Red Tape and Delivery of Efficient Government Service .

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