Consumer group sees more joining petition to revert TransCo’s FIT-All

Consumer group Laban Konsyumer Inc. (LKI) has taken the lead in asking the Energy Regulatory Commission (ERC) to revert the feed-in-tariff allowance (FIT-All) of the state-run National Transmission Corp (TransCo) to its original application in 2016 instead of the May 2017 decision.

LKI president and former trade undersecretary Victorio Mario Dimagiba said in resolving the issue, the higher courts might intervene and issue a temporary restraining order against the ERC decision.

He said the possibility of getting a substantial refund on their electricity bills could entice more consumer groups to collaborate with LKI to pressure ERC in granting their petition.

Dimagiba filed the petition seeking to consider the ERC decision that raised TransCo’s 2016 FIT-All from P0.1025 per kilowatt-hour to P0.1830 per kwh “null and void” for lack of jurisdiction.

Dimagiba said the ERC should render null and void its decision in the instant application and revert the FIT-All of TransCo for 2016 in the amount of P0.1025 per kwh instead of the approved P0.1830 per kwh and order an immediate rollback of FIT-All in the amount of P0.0805 per kwh for the benefit of all on -grid electricity consumers retroactive to January 2016.

TransCo applied for its 2016 FIT-All with a rate of P0.1025 per kwh and was given a provisional authority on Feb. 16, 2016, at a rate of P0.1240 per kwh.

LKI said they were surprised by an ERC decision in May 9, 2017 granting an additional P0.0590 per kwh in the TransCo FIT-All for 2016. This brings the company’s FIT-All for 2016 to P0.1830 per kwh.

Dimagiba said there was no amendment and no republication of the application in the variance between the 2016 FIT-All rate approved by the ERC in May 2017 and the rate applied for by TransCo.

In accordance with the 2006 ERC Rules of Practice and Procedure of due process, LKI said any substantial amendment of the application would require compliance with the notice and publication requirements of the commission.

If the LKI petition is granted, a refund retroactive to January 2016 will be adopted. Based on Department of Energy (DOE) data, grid electricity consumption in 2016 was 90,000 gwh, which is equivalent to 90 billion kwh. Multiplied by the amount of the petition, it could reach refund amount to P7.3 billion. If the 2017 grid electricity consumption is the same as 2016, the total refund could reach P14.5 billion and continue to increase until the petition is granted in favor of electricity consumers. Interests are not yet included in the estimated amount of refund .

Dimagiba justified his petition in the light of the ERC landmark decision on jurisdiction and due process in the 2017 FIT-All application of TransCo which is yet to be submitted and pending for resolution by the ERC.