Group asks RE firms to refund FiT-All

By Business Mirror February 15, 2021
https://businessmirror.com.ph/2021/02/15/group-asks-re-firms-to-refund-fit-all/

Renewable energy (RE) developers should follow the example of Manila Electric Co. (Meralco), when it proactively sought for the approval of P13.89 billion in over-recoveries, Laban Konsyumer Inc. (LKI) said on Sunday.

Vic Dimagiba, the president of the consumer group, said his group hopes that RE developers and the Energy Regulatory Commission (ERC) could refund consumers and customers the feed-in-tariff allowance (FiT-All) they charged, similar to the refund scheme of Meralco.

“I also call out the renewable energy developers in our hope that they do the same, similar initiatives, and that the adjusted FiT-All that was awarded can be voided as a resolution. ERC and the RE developers should return and refund to customers and poor consumers the money that they took through high prices for FiT-All and renewable energy developers,” he said.

To recall, Meralco has asked the ERC to approve its petition to refund P13.89 billion of over-recoveries based on its actual weighted average tariff charges (AWAT) from July 2015 to November 2020.

“[This] is the first petition of its kind filed voluntarily to offer a refund in recent years, and we hope that other players in the power and energy sector can soon follow suit. Similarly, in our pursuit for consumer welfare and the greater good for the average everyday Filipino customers. Our intervention compliments the group’s opposition to universal charges, FiT ALL and the FiT,” Dimagiba said.

FiT-All is billed to all on-grid electricity consumers, which appears as a separate line item in power distributors’ bills. The amount is meant to cover payments to RE developers who are assured of a fixed rate per kWh for electricity generated by their projects over a period of 20 years.

“We sincerely hope the government, regulator and other DUs and ECs [electric cooperatives] can follow this example for the benefit of consumers nationwide. This is a good first step for the new year 2021,” Dimagiba said.