ERC urged to socialize FIT rates on RE projects

business mirror

MONDAY, 08 AUGUST 2011 20:46

A GROUP has urged the Energy Regulatory Commission (ERC) to take a closer look at the proposed feed-in-tariff (FIT) for renewable-energy (RE) use in the country as this is disadvantageous to consumers who will shoulder the burden of paying more for clean power.

The Freedom from Debt Coalition (FDC) said the present FIT proposal is an incentive to private-sector developers that will unfortunately eventually pass on to ordinary consumers the capital costs for the renewable-energy development.

It thus urged the ERC to consider a socialized version of the FIT, or SoFIT, instead of the current proposal.

The FDC said stakeholders need to be fully involved, particularly to sharpen, develop and ultimately ensure that current proposals to the ERC will ensure that the interests of consumers are advanced in terms of affordable electricity pricing regimes and their access to renewable energy.

“We believe that a more equitable, democratic, sustainable and reasonable pricing methodology can and should be formulated,” stressed Milo Tanchuling, FDC secretary-general.

Further, FDC believes RE is a central solution to climate change, and consistent with the principle of common but differentiatied responsibilities (CBDR). It is the obligation of rich countries to finance the transition of developing countries such as the Philippines toward sustainable energy-fueled economies, the group added.

“Having said this, we believe that the CBDR principle must be applied domestically, as well,” Tanchuling said.

FIT is one of the many mechanisms that can accelerate the distribution and development of RE. However, FIT pricing for consumers should not be blind to the differentiated emissions contributions of each type of costumer—residential, commercial and industrial, FDC said.

The group suggested that FIT must be socialized and become SoFIT so consumers 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 said.

FDC also maintained that electric cooperatives, consumers and community organizations should be given a pivotal role in the development of and equitable access to renewable energy.

Moreover, FDC stressed that the promotion and full shift to renewable energy should be tightly linked with the principles and goals of equitable access to energy; adequate energy to ensure basic needs are met and a life of dignity for all; democratic control and management of energy resources; and,  a just transition that will protect the right to jobs and livelihoods.

FDC urged the ERC to join the call of global climate justice movement that rich countries cover the incremental cost of shifting to renewable energy.

“It’s high time the ERC veered away from burdening the consumers through additional rates, especially when it comes to development and access to RE,” Tanchuling said.