Power players want ERC to decide on solar FIT-2

By Danessa Rivera (The Philippine Star) | Updated November 18, 2016 - 12:00am

http://www.philstar.com/business/2016/11/18/1644761/power-players-want-erc-decide-solar-fit-2

MANILA, Philippines - The decision on the fate of the solar developers who joined the controversial second round of the feed-in tariff program (FIT-2) should be left with the Energy Regulatory Commission (ERC), a solar power player said.

The ERC should have the final say in the pricing and also has quasi-judicial and quasi-legislative powers which makes it very qualified to decide on the solar FIT-2 issue, Bronzeoak Philippines Inc. director Don Mario Dia said.

“Those who made the March 15 [deadline], it would be prudent for DOE (Department of Energy) through Secretary Al (Cusi) to toss it to ERC and let ERC investigate it and be the final arbiter,” he said.

“ERC is in a better position to review, evaluate and analyze the pragmatic approach on the guidelines,” he said, noting the move would finally allow the resolution of the issue.

The ERC is responsible in issuing the certificate of compliance for FIT (COC-FIT)—a proof the renewable energy project is entitled to receive incentives under the FIT scheme—following endorsements from the DOE.

In September, the DOE created an investigating committee to thoroughly study the implementation of the solar FIT-2 following complaints lodged by solar companies.

The Philippine Solar Power Alliance (PSPA), in its position paper, called for transparency and a level playing field in validating the awarding of FIT-2 endorsements to the ERC since the mechanism follows the “first-come, first-served” rule.

It asked the DOE to disclose the dispatch schedules from Philippine Electricity Market Corp. and the National Grid Corp. of the Philippines as well as the dates of permit issuances.

But even as the DOE formed an investigation team, DOE Secretary Alfonso Cusi said in an interview he has written to the ERC to continue the process under the FIT mechanism since the endorsements were made before his term.

But if there are problems arising from ERC’s evaluation, the DOE will work on addressing the issue, the Energy chief said.