New year, new cost
January 6, 2021Instead of preoccupying ourselves with resolutions for the new year embodying the classic “new year, new me” attitude, Filipino consumers might find themselves in a predicament, making patience and perseverance the most important resolutions for 2021.
One of the main reasons for this dilemma is the imposition of higher Feed-In-Tariff Allowance (FIT-All) rates for this year. In a recent decision, the ERC approved the petition of the National Transmission Corporation (TransCo), the renewable energy fund administrator, to account for FIT-All rate adjustments in calendar year 2020. The questioned FIT-All increase will be reflected in the bills by January.
In order to subsidize renewable energy (RE) projects, consumers will have to shoulder more payment as the FIT-All line item in the electric bills increased to P0.0983 per kilowatt hour (kwh) compared to the current pass-on rate of P0.0495 per kwh. As a result, households that consume 200 kWh will experience a Php 20 increase in their bills from the adjusted FIT-All charge.
On top of this, consumers should anticipate more FIT-All increases in the future, brought about by the issuance of Energy Regulatory Commission (ERC) Resolution No. 6, Series of 2020, “A Resolution Approving the Adjustment to the Feed-In-Tariff (FIT)” dated May 26, 2020.
It is the position of CitizenWatch Philippines that while the policy of the state to accelerate the exploration and development of renewable energy sources through the FIT may be admirable, the untimely approval of retroactive increases of FIT is not.
To further emphasize the additional burden that will be shouldered by the unfortunate consumers, the already high FIT Rate for SOLAR 1 at P9.68/kwh set in 2014 is further adjusted to a staggering P11.2758/kwh for year 2020. The same is true for WIND which from the original FIT rate at P8.53/kwh, now stands at P9.8976/KWH for year 2020. These are just examples of the increases amounting to almost two pesos and more than a peso adjustment for FIT, which will unfairly burden millions of Filipino consumers.
Untimely FIT
While the regulatory body is much respected for its adequate support to the power industry during the pandemic, it falls short on the timeliness aspect. The increases in FIT charges further aggravate the already challenging situation faced by Filipino consumers.
With due respect and in keeping with the spirit of the Bayanihan Law, the ERC should have fully considered the dire consequences of imposing increased rate adjustments knowing that it will result to an additional burden on the consumers, who are already embattled with the current economic, emotional, and health effects of the pandemic.
However unfortunate the current situation may be, all is not lost. The regulator can opt to reconsider its actions by deferring the implementation of the adjusted rates upon proper proceedings. With this move, the ERC is being true to its mandate in ensuring the protection of consumer interests.
CitizenWatch Philippines