As stated earlier, the FIT is a fixed price that is paid to renewable energy developers for the power that they generate. This price is fixed and has little room for deviation, even when there are price fluctuations in the cost of energy. This is because the FIT rate is not dictated by energy market forces; rather, it is fixed by the Energy Regulatory Commission. This means that even if the price of fossil fuels go up – and it surely will – renewable energy companies cannot just raise the prices of the energy they generate to match the increase in price of energy generated by fossil fuels.
Chairman Maniego of the National Renewable Energy Board has even said that the FIT ALL would actually be credited in favor of the consumer when the market price of energy goes past the FIT rate. This means that the line item of the FIT ALL in our energy bill could actually reduce our energy bill rather than increase it.
All that said, we cannot treat the FIT ALL simply as a new cost to the consumers. It should be treated as an investment in the energy security of the Philippines. – Rappler.com
Juan Antonio R. Oposa is a lawyer specializing in renewable energy law and policy.