ERC approves...
The uptrend in the RE subsidy rate also integrated costs relating to disbursement allowance paid to the Land Bank of the Philippines (LBP) and the Bangko Sentral ng Pilipinas (BSP), primarily accounting for their supervision fee amounting to million.
In its verdict, the ERC indicated that the FIT-All Fund is still “insufficient to cover all obligations.” As a matter of fact, the level of FIT-All collection in the 2017 adjustment warranted by ERC will just hover at billion. That is in contrast to the
aggregate claims that were lodged by the RE developers to FIT administrator TransCo, which was reckoned as of February this year.
Of the total amount, the regulatory body expounded that “only 82-percent has been paid, and 18percent or billion remains unpaid.” The ERC further stated that due to the accrued unpaid obligations to the RE developers, interest charges also swelled by as much as million to-date. “This is 195-percent higher than the January, 2016 level when the Commission approved the
per kWh 2016 FIT-All rate,” the Commission said.
It reiterated that the FIT-All Fund already incurred interest, albeit emphasizing that this is not yet part of the calculation in this round of adjustment, because “the FIT-All Formula in the FIT-All payment and collection guidelines does not provide for any projection in interest.”
The Commission added “the condition has exacerbated to the detriment of the consumers since interest is also charged in the FITAll Fund.” With that as a premise, the ERC opined that the grant of the adjustment is justified.”
The Commission propounded that in estimating the FIT-All adjustment for 2017 collections, it used the “actual cost recovery rate” from January to October 2017, then the forecasted November-December, 2017 cost recovery rate – that were all referenced on actual November-December, 2016 data.
In turn, the forecast on cost recovery rate prescribed by applicant-TransCo had been based on the 36-month load weighted average price (LWAP) at the Wholesale Electricity Spot Market (WESM) for the period August, 2013 to August 2016 at average
per kWh for Luzon grid; and per kWh – and applicable to all technologies. For Mindanao calculation, it looked at the weighted average generation cost of sample distribution utilities. (MMV)