TransCo slates payout of P34.95 B

By Myrna M. Velasco – August 22, 2019, 10:00 PM
from Manila Bulletin

Feed-in-tariff administrator National Transmission Corporation (TransCo) has applied for adjustments in subsidy rates to underpin its forecast P34.95 billion payout to renewable energy (RE) facilities for regulatory years 2020-2021.

Based on the company’s calculation, the aggregate cost recovery revenues for RE facilities across technologies will amount to P13.883 billion; while FIT differential had been estimated at P21.053 billion.

TransCo’s petition seeks slight increase in the feed-in-tariff allowance (FIT-All) to P0.2278 per kilowatt hour to be implemented for 2020 until 2021 versus the existing rate of P0.2226 per kWh as previously approved by the Energy Regulatory Commission.

For wind installations, it was shown that forecast revenue recovery will amount to P3.296 billion; solar will be for P2.346 billion; biomass will be at P4.890 billion; and hydro at P3.350 billion.

For FIT differentials, estimated amounts to be recouped for wind facilities will be P6.987 billion; solar for P5.351 billion; biomass at P6.275 billion; and hydro at P1.936 billion.

TransCo indicated that it will also need to pass-on back-billings on the FIT differential component of the FIT-All charges – those that already piled up from regulatory years 2016 to 2019.

“FIT differential back-billings for 2016, 2017, 2018 and 2019 generation amounting to P114,778,938.86; P340,118,188.67; P38,585,294.89 and P8,906,584.34, respectively, are estimated to be billed in 2021,” the FIT administrator-firm stressed.

TransCo thus noted that because of the back billings, FIT differential had gone higher to P21.053 billion, instead of the originally calculated level of P20.550 billion.

The company further indicated that the same scale of payout had been calculated for both years, but since there is a buffer working capital of P3.182 billion for year 2020, the FIT differential will be set lower at P17.783 billion.

On top of the revenue cost recovery and FIT differential, the other cost items integrated in the FIT-All charge for qualified RE facilities will be administrative allowance amounting to P12.080 million; and disbursement allowance for P1.755 million.

For the TransCo-applied FIT-All adjustment to P0.2278 per kWh, the ERC has scheduled public hearings on October 2 this year at the ERC’s main office in Ortigas, October 9 in the Visayas area; October 16 in Mindanao; and October 23 for the final hearing which will also be held at the ERC headquarters.

The FIT administrator-firm pleaded though that it be given provisional authority to implement the adjusted FIT-All charges and pass it on in the electric bills of consumers – pending the conduct of public hearings on the application.