Group seeks deferral of FIT-All implementation
A consumer group has asked the government to defer the imposition of feed-in-tariff allowance (FIT-All) which will increase electricity prices and hurt ordinary consumers starting April 2016.
Consumer Group Citizen-Watch questioned the timing of the FIT-All implementation this summer, when power rates are normally at peak level.
FIT- All is a government initiative that aims to reward renewable energy producers with higher rates, but would unfairly burden the power consumers, according to consumer Group Citizen Watch.
Wind, solar and small hydro power projects are given incentives in the form of FIT rates, which will be collected by the National Transmission Corporation from consumers.
The Energy Regulatory Commission approved the collection of FIT-All in March, translating into an increase of eight centavos per kilowatthour in power rates starting April, a time when power rates typically shoot up due to higher demand. This means an additional monthly bill of P16 for a small household that consumes 200 kilowatt-hours a month.
“We understand the clamor for cleaner energy, but we must strike a balance between this and the need to have enough energy to support the country’s development,” said Citizen Watch secretary general Wilford Wong.
Energy rates in the Philippines are already one of the highest in Asia, burdening not just consumers but also discouraging investments, according to Wong.
“The push for renewables is understandable in the context of climate change, Wong said. “But we’ve seen from the Negros experience that it’s far from a straightforward solution to our energy needs, especially for a developing country like the Philippines.”
In the push for running solar- powered plants, other renewable sources like geothermal had to give way, making little dent on the supply, he said.
Citizen Watch said coupled with higher consumption starting April, the entry of renewable sources can alter frequency of power and result in grid instability, erratic power supply and brownouts,
“As it is, the country is already playing catch- up in putting up much needed power plants,” said Dindo Manhit, president of private think tank Albert Del Rosario Institute (ADR Institute).
“The upward economic trajectory that our country is enjoying puts more pressure on the supply of reliable energy and growth will stagnate once this need is not met,” Manhit said.
Citizen Watch asked the Department of Energy to do an inventory on the reliability of each renewable power plant in preparation for the summer months and to educate the public on energy saving tips to mitigate the impact of expected rate hike.