ERC urged to ‘socialize’ feed-in tariff for renewable energy
MANILA, Philippines—The Freedom from Debt Coalition (FDC) urged the Energy Regulatory Commission (ERC) on Monday to have a “socialized version” of the feed-in-tariff allowance, to help cushion the impact of the additional charges on the underprivileged sector.
“We believe that a more equitable, democratic, sustainable and reasonable pricing methodology can and should be formulated,” FDC secretary general Milo Tanchuling said in a statement.
According to FDC, the amount of charges to be passed on to consumers should be pro-rated, based on the emission contributions of each type of customer, whether residential, commercial or industrial.
“The consumer with low greenhouse gas emissions should not have to bear the same increased electricity rate burden as those with larger emissions, as the case currently is with the proposed uniform FIT application. Those who contribute more emissions must pay more. Those who emit less should shoulder less costs relative to the country’s renewable energy transition,” FDC explained.
“Hence, the FIT system must be socialized – from FIT to SoFIT, or socialized feed-in-tariffs,” the group added.
FDC’s proposal anchors on the current scheme that gives discounts to those that consume less electricity.
The government is implementing a socialized pricing for electricity wherein those consumers with a monthly electricity consumption of 100 kilowatt-hours or less enjoy subsidized prices, through the so-called lifeline rates. The discounts given to these consumers are shouldered by those with higher electricity consumption.
Currently, the ERC is the process of reviewing the application to set the FIT rate for each renewable energy source and impose a FIT-allowance, or a universal levy to be imposed on power consumers.
Of the renewable energy technologies, solar developers and ocean energy project proponents will enjoy the highest feed-in-tariff rates of P17.95 per kilowatt-hour and P17.65 per kWh, respectively. Investors in wind development may be given a FIT rate of P10.37 per kWh; for biomass, P7 per kWh; and for hydro, P6.15 per kWh.
Based on these FIT rates and the previous 830-megawatt installation target, the FIT-allowance was earlier estimated to be 12.57 centavos per kWh—if developers were able to meet the installation targets and if the P4.50 per kWh average generation cost would not balloon over the next three years due to higher fuel prices.
No new estimate for the FIT allowance was announced, given a revised installation target of 760 MW.
FDC also urged ERC to join the call of global climate justice movement, which called for the rich countries to cover the incremental cost of shifting to renewable energy from the traditional fossil fuels.
“It’s high time the ERC veered away from burdening the consumers through additional rates, especially when it comes to development and access to renewable energy,” Tanchuling said.
