Group seeks moratorium on FIT-All

MANILA, Philippines — Consumer group Laban Konsyumer Inc. (LKI) is urging the power regulators to implement a moratorium on all feed-in tariff allowance (FIT-All) applications amid lower renewable energy rates.

LKI urged the Energy Regulatory Commission (ERC) to suspend resolution of the FIT-All pending applications. 

Its president, former Trade undersecretary Victor Dimagiba, said there is an urgent need for the ERC to sit down with the stakeholders and discuss the merits of continuing the collection of the FIT-All. 

Billed to all on-grid electricity consumers, the FIT-All covers payments to renewable energy developers.

Currently, consumers are being charged a FIT-All rate of P0.2563 per kilowatt-hour (kwh). The National Transmission Corp. (TransCo), which manages the FIT-All fund, has a pending application to increase the rate to P0.2932 per kwh for 2018.

However, TransCo’s application for 2019 is asking for a lower FIT-All rate of P0.2780 per kwh.

Moreover, LKI cited renewable energy is being offered to distribution utilities for as low as P2.90 per kwh, based on industry sources.

Dimagiba also observed that in fact, ERC has regressed all FIT rates to lower amounts. 

With all these factors, LKI said there is no need to approve the 2018 FIT-All application when TransCo’s 2019 application already shows a lower amount. 

Dimagiba 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. 

Further, the LKI official suggested that ERC also develop a simpler formula for computing the FIT-All which can be more easily understood by the consumers and therefore more defensible.

“The formula and supporting statistics in the computation of the FIT-All is too complicated that it effectively defeats the consumers’ right to know. We propose that the honorable commission revise and amend the formula. Only the applied incremental increase for the period should be the content of the application,” Dimagiba said.