Consumer group decries increase in FIT-All
Consumer advocacy group Citi“Clean zenWatch said the Feed-In-Tariff Allowance, or FIT-All, in electricity bills is proving to be an additional burden for Filipino consumers already overburdened by the increase of prices attributable to rising inflation rates, oil price hike in the world market, weakening of the peso against the US Dollar and the untimely impact of the Tax Reform for Acceleration and Inclusion (TRAIN) law.
Power distribution utility Meralco announced another round of overall rate decrease since last month. For June, there is a R0.1252 per kWh decrease in electricity rates, which translates to a reduction of some R25 in residential customers consuming 200 kWh.
“The cut could have been higher if not for a R.0733 per kWh increase in FIT-All rate.” said Atty. Hannah Viola, CitizenWatch Philippines convenor.
“Instead of enjoying the full benefits of the decrease amounting to almost R0.20 per kWh, consumers are left only with a reduction of R0.13 per kWh,” she noted.
FIT-All refers to the uniform charge billed to all electricity consumers to help subsidize the production of clean but expensive renewable energy, such as solar and wind.
It is filed by the National Transmission Corporation (Transco), as the FIT-All Fund Administrator, and set by the Energy Regulatory Commission (ERC) on an annual basis.
In its Decision dated February 27, 2018, the ERC approved the 2017 Feed-In Tariff Allowance amounting to R0.2563/kWh, which is equivalent to R0.0733/kWh increase from the current R0.1830/kWh FIT-All rate, despite Transco’s application for the approval of a lower FIT-All rate amounting to R0.2291/kWh.
The ERC justifies its adjustment on the inefficiency of the FIT-All Fund to cover all its obligations, citing that out of the total RE claim is at R40.20 billion, only 82 percent has been paid and that 18 percent or R7.378 billion remains unpaid.
CitizenWatch Philippines, however, noted that the recent increase marks the second time in which ERC approved rates higher than what Transco proposed, creating an additional burden for ordinary consumers.
“Insufficiency of FIT payments should not be shouldered by the consumers anymore, who are already suffering as it is. We call on the government to explore other options in addressing the R7.378-billion deficit, to have an immediate review of FIT-All processes and to ultimately find solutions that will help soothe the plight of consumers,” Viola said.