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THE government is pursuing an era of competitive energy investments through lower tariffs in an effort to make electricity more affordable to Filipinos, the Department of Energy (DoE) said.

In his keynote speech at the 29th Energy Investment Forum at the Makati Shangri-La, Manila hotel on Thursday, Energy Secretary Alfonso Cusi said the Duterte administration is seeking an “innovative, competitive and sustainable energy environment” in facilitating such investments via lower tariffs.

“The P3/kw tariff is more than three times lower than the feed-in tariff [FiT] rate that was considered under [previous]administrations. This development results [in]lower tariffs on energy that should translate to lower power rates for consumers,” Cusi said.

According to him, the FiT era is over and was never meant to be permanent.


“Nobody, least of all the industry, should expect that [FiT] subsidies would remain forever, especially when consumers have to foot the bill,” the Energy chief said.

“It is now a question of how we can foster a [renewable energy]industry that is competitive and affordable, as an alternative to conventional energy,” he added.

Cusi has opposed the extension of the FiT scheme, arguing that it would further burden consumers and it goes against his department’s mission to reduce electricity rates.

However, he told reporters in a chance interview that the DoE is studying an appeal to extend the system to existing projects only in order to fill up the allocation for hydro and biomass projects.

In October, National Renewable Energy Board (NREB) Chairman Jose Layug Jr. told reporters that only 26 megawatts (MW) out of 250MW have been constructed for hydro facilities and 96MW out of 250MW for biomass projects.
The NREB is asking for the extension of the FiT scheme in order to finish all pending biomass and hydro projects.

Reference:

Lagare, J. S. (December 9, 2017). Energy investments sought via lower tariffs. The Manila Times. Retrieved from http://www.manilatimes.net/energy-investments-sought-via-lower-tariffs/367617/

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