‘Laban Konsyumer’ files motion against latest increase in feed-in tariff allowance

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LABAN Konsyumer, Inc. (LKI), thru lawyer Victorio Mario A. Dimagiba, moved last Monday, June 1, for the reconsideration of the decision of the Energy Regulatory Commission dated February 27, 2018, but docketed on May 11, same year, and a copy of the decision received last Friday, June 1, 2018, on the increase of price in Feed –in-Tariff Allowance.

In its motion, LKI stated that “the assailed decision is null and void and without legal effect as it violates the basic and cardinal principle of the first rights guaranteed in our Bill of Rights of the 1987 onstitution (Sec. 1, Article III), mandating “No person shall be deprived of life, liberty or property without due process of law, nor shall any person be denied the equal protection of the law.”

A copy of the motion was sent by email to Meralco and Transco on the same day.

Dimagiba went on to say that “Aside from being void ab initio and without legal effect, the assailed decision must be reconsidered because it granted a higher FIT-All rate of R0.2563/kWh despite the applicant National Transmission Corporation’s (TRANSCO) prayer for the approval of a FIT-All rate of R0.2291/kWh, which is an’ act of grave abuse of discretion tantamount to lack or excess of jurisdiction on the part of this Honorable Commission.”

He added “It is evident that TRANSCO failed to comply with the notice and Republication requirements of the commission when it recalculated and asked (during the expository presentation of the present case) for a higher FIT-All rate of R0.2481/kWh. Such recomputation should have been republished as it was a substantial change to the application filed by TRANSCO.”

LKI is not arguing that the FIT-All rate should be disregarded, only that it be determined in a certain manner – a manner that upholds and respects the constitutional right to due process of every electricity consuming public in this country.”

Dimagiba said: “What LKI finds erroneous is the manner by which this Honorable Commission disregarded its own pronouncements of protecting the consumers from rate applications that fail to comply with due process requirements and then, itself violating the said due process requirements that it espoused when it issued the assailed Decision.”

In a previous statement, pro-consumer advocacy group, Laban Konsyumer Inc. (LKI) criticized the recent Energy Regulatory Commission (ERC) decision on TRANSCO’s application for approval for the Feed-In Tariff Allowance (FITAll) for Calendar Year 2017 pursuant to the guidelines for the collection of the FIT-All and the disbursement of the FIT-All fund, increasing the FIT-All rate from R0.1830 to R0.2563 per kwh, which will be implemented starting June 2018 billings.

In an ERC decision dated February 27, it stated: “... the Commission hereby authorizes the National Transmission Corporation (TRANSCO) to collect the Feed-In Tariff Allowance equivalent to R0.2563/kwh, which is equivalent to R0.0733/kWh increase from the current R0.1830/kWh FIT-All rate, as its 2017 FIT-All rate, under ERC Case Number 2016-192 RC, in the Matter of the Application for the Approval of the Feed-In Tariff Allowance for the Calendar Year 2017 pursuant to the Guidelines for the Collection of the Feed-In Tariff Allowance and Disbursement of the Feed-In Tariff Fund, with Prayer for Provisional Authority.”

LKI President and former Department of Trade and Industry (DTI) Undersecretary Vic Dimagiba expressed concern over the decision and reiterated his group’s prior petitions to revert the FIT-All, and reminded the ERC of its mandate to protect consumer welfare. He also asked that “ERC should not be ruling on any further rate increases in FIT-All, and the Commission should render null and void its decision in the application for an increase in FIT-All.

Because of this increase, consumers will have to brace for an increase in their electricity bills starting June, and this will only add to their already ongoing suffering from TRAIN.”

LKI voiced out its concern for Filipino consumers, saying that “consumers are already overburdened with rising fuel costs, as well as the rise of prices of rice, noodles and other basic commodities. Though sometimes we are welcomed by news such as lower electricity rates this month of May as announced by Meralco, looking at the bigger picture, prices of most products, goods and services have been skyrocketing, especially with the implementation of the TRAIN law.”

Dimagiba criticized the approved increase as anti-consumer saying that LKI will continue to oppose the merit of FIT-All. “The increase in FIT-All will only exacerbate the already difficult situation that our fellow Filipino consumers are experiencing, with prices everywhere going up,” he said.

LKI questioned the haste in issuing the decision, asking why higher fees are being paid to TRANSCO, when in fact there are ongoing petitions for smaller or removal of FIT-All.

LKI announced that it will appeal the decision, Dimagiba said “As soon as we receive our copy as intervenor, we shall invoke again the same reason for the 2016 FIT-All. Eventually, we will bring the case to the Court of Appeals for gross abuse of judgement and lack of jurisdiction.”

LKI had earlier asked the ERC to render null and void its decision to increase FIT-All rates for 2016. Dimagiba reminded that “TRANSCO applied for a FIT-All for 2016 of 10.25 centavos per kwh. In February, 2016, the ERC provisionally approved a FIT-All rate of 12.40 centavos per kwh. Three months later, the ERC granted an additional amount of 5.9 centavos per kwh, bringing the total Fit-All rate for 2016 to 18.30 centavos per kwh.”