The Department of Energy (DOE) Secretary Alfonso G. Cusi said the feed-in-tariffs (FITs) subsidy is one of the many “sins” that contributed to the increase in electricity rates in the country.
“The lobbyists should be crucified,” Cusi was quoted in a Manila Bulletin report, referring to project developers who lobbied for the FIT incentives.
The FIT system was introduced in 2010. Rules surrounding availment of the FIT was created by RE developers.
Filipino consumers are being charged around P20 billion to P24 billion worth of subsidies in their electric bills for these FIT-qualified RE projects. This is on a yearly basis.
Cusi mentioned that the next developments of RE in the country should not burden the consumers.
“This renewable energy program that we’re doing now is because we want to scale down the previous sins… we want to bring it down,” the energy chief added.
Cusi added that through competitive selection process (CSP) or auction, cheaper costs of RE will eventually be supplying and adding on to the power requirements of consumers.
The DOE will be monitoring the auction of RE capacities that shall be included in the Renewable Portfolio Standards (RPS) policy of the government.
Around 2,000 MW of RE capacity will be placed under auction early part of next year.