Meralco says 4¢ FIT-All a mere ‘pass-through’ charge

MANILA, Philippines - Manila Electric Co. (Meralco), the country’s biggest power distributor, said the four centavo feed-in tariff Allowance (FIT-All) charge that is now the subject of a case filed with the Supreme Court, is not an additional tariff charge being sought by the company but a mere pass-through charge.

“We would like to clarify that the billing and collection of the P0.0406 kilowatt-hour (kwh) FIT Allowance that is sought to be enjoined in the case that was filed with the Supreme Court is not a Meralco tariff charge but is actually a distinct and separate line item charge similar to other pass-through charges that Meralco is required to bill and collect from its customers pursuant to lawful orders of the regulators,” said William Pamintuan, head of Meralco’s Legal Department.

He said Meralco is only part of the case as a respondent since it was asked by the Energy Regulatory Commission (ERC), to collect the questioned FIT-All from its customers and remit the same to the National Transmission Co. (TransCo).

“The billing and collection of the said FIT Allowance is a mere pass through charge that Meralco is required to undertake pursuant to the order of the ERC. Meralco shall comply with any order or directive from the Supreme Court or the ERC regarding the case,” Pamintuan added.

The FIT-All will start to be collected supposedly this month but became the subject of a case filed at the Supreme Court by lawyer Remigio Michael Ancheta, who questioned its constitutionality.

The FIT-All will be given to renewable energy players as an incentive to invest in the more expensive but less lucrative RE sector.  Renewable energy players are solar, wind, biomass and small hydropower companies.

At a rate of four centavos per kilowatt-hour, FIT-All will be charged to all electricity consumers, similar to a universal charge which is a separate line in electricity bills and is used to pay off the debts of the National Power Corp. (Napocor), the state-owned power company.

The ERC, for its part, said it would await the court’s action.

“We will await court’s action and comply with its directives addressed to ERC unless a temporary restraining order (TRO) is issued,” ERC executive director Saturnino Juan said.