PMCJ to ERC, Gov’t: FIT-All will increase power rates by 42%, not fit for consumers
- Media Communications
- Feb 25
- 3 min read
Updated: 1 day ago
Quezon City, Philippines — The Philippine Movement for Climate Justice (PMCJ) called out the Energy Regulatory Commission (ERC), and other concerned government agencies, as the latter approved the National Transmission Corporation (TransCo)’s application for the Feed-in Tariff Allowance (FIT- All) for 2024, making consumers pay for the “lower-than-expected” Wholesale Electricity Spot Market (WESM) prices.
According to Republic Act No. 9513, commonly known as the Renewable Energy (RE) Law, the feed-in tariff allowance (FIT-All) accelerates the development of emerging renewable energy resources. However, PMCJ and other climate-concerned groups have expressed that the implementation of the RE Law and its provisions must not burden consumers, as it is the state’s responsibility to enact transition for the people and environment efficiently.
“In 2011, the Freedom from Debt Coalition stressed that FIT-All should have a socialized version; to which the PMCJ also advocates for. This translates to more equitable pricing, as it suggests to be pro-rated. Consumers with low greenhouse gas emissions should not have to bear the same increased electricity rate burden as those with larger emissions, whether residential, commercial, or industrial,” PMCJ National Coordinator Ian Rivera recalled.
It must be recalled that during the past administration, the Feed-in Tariff was discontinued as it led to the increase of electricity rates burdening the many lower end consumers. “This places a lot of questions to the Marcos-led ERC—why they imposed a wrong solution to increase the penetrability of renewables. RE tariff is the least of the worries of the RE developers now, since RE has now become competitive. Most developers still complain of an uneven playing field posed by coal and gas as they still dominate the procurement system. The move will have a downward push for RE instead.” Ian Rivera argued.
The ERC set a new rate of Php 0.1189 per kilowatt-hour, up from the current Php 0.0838 per kWh FIT-All collection. This represents a 42 percent increase in the power rate, which will be reflected in the March billing of all on-grid consumers who are already grappling with high electricity prices.
“Behind the smoke and mirrors of the government in pushing for renewables, are the business-as-usual schemes that only benefit the big power distribution and transmission companies. If the current administration is serious in transitioning the energy industry to renewables. In that case, it must push for the phaseout of fossil fuels to give way for the just transition to clean energy through a planned and managed phaseout of expensive, dirty fossil fuels,” Rivera stressed.
According to an Ateneo School of Government study, as the government considers FIT-All to be the most effective way to develop RE, “the added capacity of FIT-eligible generating plants did not translate to a growing share of RE in the power generation mix.” It is also counterintuitive to increase FIT-All rates to compensate for the difference in WESM’s low prices, as it distorts price signals. This only makes renewable energy players more reliant on the subsidies paid by the consumers, which will eventually remove the competitive environment for the developers to make operations more efficient, reduce costs, and seek technological advancements for improved grid integration.
In the latest report of the International Energy Agency, coal still dominates the country's energy sector. Last January, despite protests, Philippine President Ferdinand "Bongbong" Marcos, Jr., signed the gas bill into law, promoting the country's fossil gas industry.
“The deteriorating climate, in the face of catastrophic typhoons and massive floods, speaks to what the government is really pushing for. Ramping up the fossil gas industry, fast-tracking the process of constructing coal-fired power plants while no sunset on site for coal—counters the President’s and energy agencies’ statements of pushing for renewables. Stop fooling the people of false clean energy efforts narratives. The people have long laid out the cards for clean energy solutions to ensure a just and managed transition to renewable energy. All the government needs to do is provide the support,” Rivera ended. ###
FOR INQUIRIES:
Sheila Abarra
Senior Media and Communications Officer
Philippine Movement for Climate Justice
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