Gov’t asked to delay FIT-All power price hike

by Bernie Magkilat April 3, 2016

www.mb.com.ph/govt-asked-to-delay-fit-all-power-price-hike

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 CitizenWatch 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 CitizenWatch.

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 8 centavos per kilowatt-hour 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 kWh 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 CitizenWatch 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.

CitizenWatch also warned against the hype surrounding renewable energy, including the recent visit of high-profile backer Al Gore.

“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.” (BCM)