By JOHN CARLO M. CAHINHINAN
A consumer think-tank group on Tuesday urged the Duterte administration to suspend the implementation of the Feed-In Tariff Allowance (FIT-All) cost being charged to electric power consumers.
Former Presidential Commission on Urban Poor chief and Infrawatch PH convenor Atty. Terry Ridon said the FIT-All recently increased from Php 0.18 to Php 0.26 kilowatts per hour (kwh) and suspending its implementation “translates into monthly savings of Php 51.26 for the typical household consuming 200 kwh.”
Ridon said these savings translate into more funds for food items and other household needs.
The former Urban Poor Commission chair and Kabataan party-list solon stressed that suspending the FIT-All makes sense in view of the present status of solar power technology since several renewable energy operators can offer it at Php 2.99 kwh.
FIT-All is an additional charge which is being thrown by power distributors to the consumers of electric power and paid to producers using renewable energy.
Under the Renewable Energy Act (Republic Act No. 9513), the FIT-All incentive covered electricity produced from wind, solar, run-of-river hydropower, biomass, and ocean power.
The basis of FIT-All tariff is to subsidize renewable energy producers so that they can recover their investment in a reasonable amount of time since the cost of development is much expensive compare to the conventional power producers.
Last May, the ERC approved a Php 0.0733 kwh increase in FIT-All charge.
Ridon stressed that the present national imperative “is to reduce the prices of goods to stem inflation” and one step which will significantly slash the prices of basic goods and services is the suspension of the FIT-All tariff paid to renewable energy producers.