"The trend toward widespread use of renewable energy resources makes eminent sense."
"The trend toward widespread use of renewable energy resources makes eminent sense."
Many countries have already installed significant solar power capacity into their grids to complement or provide an alternative to conventional energy sources. The trend toward widespread use of renewable energy resources like solar makes eminent sense as it would reduce dependence on expensive imported fuels.
The two chambers of Congress have already approved House Bill 8179, which seeks to grant Solar Para Sa Bayan (SPSB) a non-exclusive right to operate microgrids in unserved or underserved areas in selected provinces at zero cost to government. While power producers see this as a threat to their business, Filipino consumers support its passage into law as this gives them a new choice for electricity.
In fact, an estimated 20 million Filipinos now support the proposed bill, gauging from social media posts that have generated over 2 million likes, comments, and shares. Various local government units have also written Malacañang citing the positive impact of solar projects in their towns and the benefits that’s sure to come if it is approved by legislators. These jibe with the results of a recent Pulse Asia survey showing that 82 percent of Filipinos favor having new options for electric service.
What’s unfortunate, however, is that groups representing the power industry are opposing the bill, which they have labeled a “mega-franchise”. What they are not saying is that the SPSB franchise is non-exclusive, limited in scope, and will not enjoy any government subsidy. The franchise is necessary to energize unserved and underserved areas. SPSB already operates in 12 towns in 8 provinces, benefiting over 200,000 Filipinos.
HB 8179 will gives consumers a new choice for electricity. With it, consumers can choose between reliable, 24/7 service and the poor service provided by existing utilities. By “choice” we mean real choice, because if unserved or underserved areas do not wish to avail of SPSB’s, then it is their decision to pick the power provider they want. Even if SPSB ends up securing a non-exclusive franchise, nobody will force consumers to pick the one offered by SPSB. This is the essence of genuine choice.
The best part of SPSB’s proposal is it incurs zero cost to the government, and comes with no subsidies and no incentives, unlike existing renewable energy and rural electrification programs.
The very benefit of zero subsidies is the reason the power industry is trying to stop SPSB’s projects, as it shows the government no longer needs to subsidize power companies. The electric utilities and renewable energy companies opposing HB 8179 are currently receiving billions per year in government subsidies.
The Philippine Rural Electric Cooperatives Association, Philippine Independent Power Producers Association, and other groups have joined forces to oppose HB 8179. What do they have in common? They represent the interests of self-serving electric utilities. None of them share the sentiments of genuine consumers.
Filipino consumers pay among the highest costs of electricity in Asia, and millions of Filipinos do not even have access to 24/7 electricity. What Filipinos want, and what our government should care about, is what will bring cheaper, better service for the millions of our countrymen who have been at the mercy of utilities for so long.
None of the oppositors to HB 8179 can deny the fact that SPSB has already fulfilled its promise to bring cheaper 24/7 power to unserved and underserved areas at zero cost to government. Consumers in these areas chose to leave their previous utilities and switch to SPSB.
The duty of the State is not to protect businesses from competition, but to serve Filipinos who have long suffered from inadequate electric service, especially in the case of inefficient electric utilities in unserved and underserved areas.
To the power companies that have mounted a concerted campaign against Solar Para Sa Bayan, we ask: Instead of trying to prevent competition, why not just improve your service? The only reason there is need for this is Filipinos are fed up with the high rates and poor service of electricity. SPSB can only enter areas where there is a need, not areas with satisfied customers and efficient utilities.
In fact, the approval of HB 8179 should serve as a wake-up call for utilities to improve their service and embrace new technologies, just as landline companies adapted to the reality of mobile phones. This should be the model for the power industry. Disruptive technologies are for them to embrace, not resist, or risk obsolescence in the near future.
After all, HB 8179 is a non-exclusive franchise, so even should it become law, other companies are encouraged to apply for their own franchises, benefiting more unserved and underserved households in the process. But if the bill is rejected, this would send a signal that utilities can continue to deliver poor and overpriced service, free from competition, and at the expense of Filipino people.
We understand that the approved bill is already awaiting the President’s signature. If he does so—and soon enough—then we go a step further in making renewable energy more accessible to more Filipinos.
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