LKI 45th Press Statement on Opposition to 2020 Fit all applications of TransCo

2019-09-08 23:59:33

Republic of the Philippines

       ENERGY REGULATORY  COMMISSION

San Miguel Avenue, Pasig City



IN THE MATTER OF THE 

APPLICATION FOR 

APPROVAL OF THE FEED-

IN TARIFF ALLOWANCE 

FOR CALENDAR YEAR 2020 ERC CASE NO. 2019-056 RC

PURSUANT TO THE 

GUIDELINES FOR THE 

COLLECTION OF THE FEED-

IN TARIFF ALLOWANCE 

AND DISBURSEMENT OF 

THE FEED –IN TARIFF 

ALLOWANCE FUND, WITH 

PRAYER FOR PROVISIONAL

AUTHORITY



NATIONAL TRANSMISSION 

CORPORATON ( TRANSCO ),

Applicant.



LABAN KONSYUMER INC.

( LKI ), Oppositor/Intervenor.



x-----------------------------------------x



                 VERIFIED PETITION AS OPPOSITOR/INTERVENOR WITH MOTION TO DISMISS 


The Oppositor /Intervenor LKI through  its President and counsel respectfully pleads as follows :

1.The  2019 FIT All petition is still pending decision by the Honorable Commission, yet ,   Transco had publicly stated in media that they possess  a surplus of Phpn3.0 Billion on its FIT ALL collections and has enough financial leeway to pay  the current FIT All claims of all RE developers. ( MANILA BULLETIN JULY 21., 2019 by  Ms Myrna Velasco .



  2. The surplus of Php 3 Billion  is explained as follows :

“ FIT Differential (FD) Under-Recovery shrunk by 96%, FIT-All rate must reflect the significant reduction


In 30 July 2018, National Transmission Corporation (TransCo) filed an Application for the approval of a Feed-in-Tariff Allowance (FIT-All) for 2019 of PhP0.2780/kWh.  The parameters in their Application used data as of May 2018.  However, updated parameters were presented by TransCo in their Manifestation to the ERC dated 4 March 2019.  Since full-year actual 2018 data was already available, TransCo re-calculated the 2019 FIT-All rate using the updated parameters.


If we look closely at the updated parameters, most had minor movements, except for FIT Differential (FD) Under Recovery which dropped by more than Php3.5 B from May to December 2018:


Parameters As Filed Update % change

A. RE Plants Included No Change in line-up. Just an update on category, i.e., from REs with Effective REPA Not Yet Billing to REs With Billing; change in timing of billing  

B. Billing Period Actual up to May 2018 Actual up to December 2018  

C. Energy Generation, MWh  

2018 3,264,621 3,173,335 -2.8%

2019 3,567,501 3,535,583 -0.9%

D. Collection Data Actual FIT-All Collection until June 2018 Actual FIT-All Collection until December 2018  

E. Average CPI 151.5083 152.2083 0.5%

12 months ending May 2018 12 months ending June 2018  

f. ACRR of Host DUs already billing P4.8796/kWh P5.2146/kWh 6.9%

12 months ending May 2018 12 months ending December 2018  

G. PEMC 36-month LWAP  

Luzon P3.3506/kWh P3.2782/kWh -2.2%

Visayas P3.2210/kWh P3.1240/kWh -3.0%

H. FD Under Recovery, PHP 3,652,998,330.77 122,740,061.65 -96.6%

I. Factor Rate 9.3937% 9.4969% 1.1%


The significant reduction in the FD Under Recovery component means that TransCo practically eliminated their under recoveries by end-2018 at the current FIT-All rate of Php0.2563/kWh.  TransCo’s numbers show that the rate of reduction of the FD Under Recovery was around Php504 million per month.  If the current FIT-All rate is allowed to continue, the FIT program will begin overcharging by Php504 million per month from consumers nationwide.  Thus, the FIT-All rate and its burden on consumers must be reduced.


TransCo’s Forecast National Sales (FNS) for 2019 of 87,951 GWh is equivalent to sales of 7,329 million kWh per month.  To remove the Php504 million per month overcharge from consumers, the FIT-All rate must be reduced by Php0.0688/kWh to Php0.1875/kWh. 


The reduced under recoveries is a good indicator of TransCo’s management of the FIT collection and payment to RE suppliers. However, the FIT-All rate must not overcharge consumers.  A FIT-All rate of Php0.1875/kWh will allow TransCo to pay RE suppliers in a timely manner.  Hence, ERC must ensure that all updated data are considered in TransCo’s application and that a reasonable FIT-All rate is ultimately approved.”


3. However, the Honorable Commission approved a reduced FIT All for 2018 in the amount of Php 0.2226 , and thus further contributed to Transco healthy FIT ALL collections and financial position. The application for a marginal increase of Php 0.0052 pkwh  for 2020 should be set aside until Transco submits to the Honorable Commission an updated FIT ALL collections as of filing of the application . The  updated report can show whether the 2019 FIT ALL petition  as well as the instant 2020 FIT ALL applications be dismissed for lack of cause of action.

4. The foregoing was submiited to the Commission in LKI's  Urgent Rejoinder to the 2109 FIT All petition dated March 22, 2019, which should be part of the record of the 2019 application.

5. LKI observed the 6  billion increase in the forecast national sales from 2019 to 2020 , whereas the 2018 and 2019 electricity sales are almost identical at 86 B kwh . The Commission should carefully evaluate the assumptions and basis for the forecast. 

6. The 2019 FIT ALL applications had been rendered moot and academic as LKI had earlier pleaded in the 2018 FIT ALL petition. 

  WHEREFORE, LKI respectfully prays as follows:

1. That the Honorable Commission accepts the entry of LKI as Oppositor and Intervenor in the 2020 application .

2. That the 2020 FIT ALL application be dismissed for lack of cause of as Transco own declaration shows a surplus of Php 3 Billion pesos and with enough surplus topay their FIT ALL obligations to RE developers. 

3. That the  Commission determines whether consumers should be entitled to interest on the Transco FIT ALL surplus, which are all money from the consumers. 

4. Such other equitable relief as the Commission may order in pursunace of its mandate to ensure consumer welfare.

August 29, 2019..



 

ATTY. VICTORIO MARIO A. DIMAGIBA  AB, LLB,LLM

OPPOSITOR/INTERVENOR

NO. 5 ELGIN STREET, BRGY. FAIRVIEW, QUEZON CITY

ROLL ATTY .NO. 24285

PTR NO.7446842,JAN. 11, 2019

IBP NO.AR 4719174, JAN. 11, 2019

MCLE 6 , COMPLIANCE CERTFICATE UNDER PROCESS

EMAIL: dmagiba@pldtdsl.net; labankonsyumer@gmail.com

     VERIFICATION


I , VICTORIO MARIO A. DIMAGIBA, of legal age, Filipino. Married amd resident of No. 5 Elgin Street, Brgy . Fairview , Quezon City, 1118, duly swear  that he is the President of Laban Konsyumer Inc., that he personally prepare the  oppsition and intervention as well as the Motion to Dismiss and the facts alleged therein are true of his knowledge.




August 29, 2019.



 

ATTY. VICTORIO MARIO A. DIMAGIBA

Affiant

Subscribed and Sworn to before me this ____day of August , 2019 and the affiant shows his OSCA ID No. 17456-T, June18, 2019, Quezon City.




Notary Public


Doc. No. ____

Page No.____

Book No. ___

Series of 2019











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