LKI calls on NGCP, DOE, ERC to ensure lower cost of power

Published April 3, 2020, 10:00 PM By Bernie Cahiles- Magkilat
https://business.mb.com.ph/2020/04/03/lki-calls-on-ngcp-doe-erc-to-ensure-lower-cost-of-power/

Consumer advocacy group Laban Konsyumer Inc. (LKI) yesterday called for the stop of the collection of universal charges to consumers, especially during the lockdown period to aid Filipinos in their economic difficulties.

LKI President Victorio Mario Dimagiba has made this appeal to the National Grid Corporation of the Philippines to defer the collection of universal charges and for the Energy Regulatory Commission (ERC) to defer for another month its collection of Feed-In Tariff Allowance (FIT-All) charges in consideration of the trials and hardships that consumers go through these past few weeks.

“These are extraordinary times, and consumers in the Philippine are going through the most difficult situation right now, along with their families, as they have no work and cannot make money on a daily basis. Because of the lockdown and the negative effects of the COVID-19 pandemic, they have no source of income and have no way to make daily wages,” Dimagiba said.

As such, LKI has called on the ERC and the Department of Energy (DOE) to find a way of blocking unnecessary costs that will unfortunately burden consumers and place a great weight on consumers.

“We hope that government and regulator will use their power to force Power Sector Assets and Liabilities Management (PSALM) and NGCP to comply and hold off on their charges, for the greater good and benefit of consumers around the country,” said Dimagiba.

“LKI is appealing to PSALM and NGCP to lower electricity rates through deferment of collection of Universal Charge and non-payment of capacity fee to Ancillary Service Providers, respectively, during the Enhanced Community Quarantine.”

At this time, Universal Charge, which amounts to about ₱0.2014/kWh, should not be imposed on electricity consumers in the main grid. PSALM should not collect the ₱0.0428/kWh for NPC Stranded Contract Debt be-cause this should be covered by the “Murang Kuryente Act”.

LKI went on to explain in detail that “as provided in the law, this should be taken from the Malampaya fund so electricity consumers should no longer be paying for this. We reiter¬ate our call to government to implement the Murang Kuryente Act. PSALM should not collect ₱0.1586/kwh for Missionary Electrification and Environmental Charge because NPC’s fuel cost in off-grid areas should have already gone down due to the significant drop in oil prices. The reduction in oil prices should provide suf¬ficient headroom to cover actual fuel costs.

Dimagiba also highlighted how similar to distribution utilities, NGCP should also claim Force Majeure in its agreement with Ancillary Service Providers, stressing “We expect ancillary service charges to go down because supply is well above demand. This means that the required level of reserves should be lower than under normal conditions. NGCP should strive to lower fixed costs associated with ancillary services. As providers should only be paid for actual delivery, and not for capacity that has been nominated but was not dispatched. NGCP has the obligation to look out for the best interest of its consumers, and protect their welfare as we suffer through this enhanced com¬munity quarantine and all its ramifications.”