The Solar Para Sa Bayan Mini-Grid Franchise (H.B. 8179) is a Trojan Horse (Part 3)
For People and Country, We Need an “Inclusive” Not “Non-Exclusive” Mini-Grids Instead
David Celestra Tan, MSK
14 October 2018
The ongoing full-scale lobby by SPSBC for a supposed “non-exclusive” franchise including its’ new strategy to “invite” hundreds of minor solar power providers to a mass application for mini-grid franchises will create an undesirable disruption in the public electricity services. It will unleash a mad scramble for mini-grid territories where the “fittest” will survive. And you know who will be the “fittest” of them all specially with the reported buy-in of foreign power KEPCO into SPSBC.
HB 8179 is at best a franchise grant that will do more damage than good due to its incompleteness. It is Complete only for SPSBC but not complete for the whole power infrastructure including its astute exemption from rate regulation.
What would be better for people and country is an “inclusive” mini-grid law instead of the claimed “non-exclusive” franchise, even if we also grant similar franchises to the minor and probably token playerswho have joined the SPSBC lobby campaign.
What we need is a true solar para sa bayan program where the “Bayan” is the electricity consumers AND“inclusive” of the thousands of current and future Filipino solar entrepreneurs service providers that will be spawned nationwide by a truly patriotic and democratic market opening legislation.
The enticement of SPSBC’s blazing the trail for other “mini grid” franchise applications is misleading because in reality everyone and Mr. Leviste knows the difficulty of getting legislative franchises. Imagine the kind of effort, resources, complexity, and lobbying power you need to get past the gate keepers of public service franchises? This also guarantees that only a few big “mini-grid” players would come in. And all that for the total disruption of public electricity services. Besides, if these big moneyed players can use their lobby power to get franchises approved, they can also use that lobby power to get competing franchises disapproved.
An “Inclusive” Instead of “Non-Exclusive Franchise” Legislation
What the country needs is to open the door for mini-grid licenses instead of legislative franchises. Mini-grid Licenses can be open to all qualified and legitimate solar and renewable energy service providers under clear and reasonable criteria for qualification. One where service level standards are defined and the rules and methodologies are clearer in the sensible integration of mini-grids into the main power grid, where there is an orderly identification of mini-grid service areas especially in the isolated and off-grid areas. This should include “neighborhood” solar power retailing by residents with capability to install his own systems.
1. Legislative Franchises would be tall barriers to entry to mini-grid services and are anti-people. Licensing on the other hand will unleash a powerful economic juggernaut nationwide and an engine for growth of countryside businesses and millions of employment. Not to mention the economic benefits of rural electrification.
2. Congress might instead consider passing something called “National Accelerated Electrification, Clean Energy, and Mini-Grids Licensing Law”. Imagine achieving 100% nationwide electrification in 3 to 4 years without massive government funding, something not achieved in the last 50 years?
3. Mini-grid territories identified by the government can be opened to Competitive Selection Process or CSP. And retail rates can be reviewed by a regulatory agency unlike the “least cost”power that HB8179 feigns to provide. The only thing worse than bad regulation is no regulation.
4. Licenses can be applied for Unserved, underserved, and expensively served towns, sitios, and even urban blocks, evaluated and awarded according to clear criteria and fully desired and endorsed by the residents.
5. A “mini-grid” licensing board or authority can be set up to administer this electrification program. It can be put under the Office of the President or the Department of Energy.
6. Solar, Renewable Energy, and hybrids are the more cost effective and faster ways to install electricity in distant isolated areas and achieve total electrification of the country as opposed to traditional distribution line extensions which in the first place is too expensive and uneconomical for sparse service areas. Separate rules can be set suitable for these missionary areas and apart from the rules on mini-grids in urban areas where residents are unhappy with their rates or service.
7. Currently there must be hundreds of thousands of budding solar and renewable energy entrepreneurs who can offer the similar solar based “distributable power technologies” that SPSBC claims they can pioneer. Why allow a giant and apparently favored Mini-grid franchisee to swoop down and take away those opportunities from millions of Filipino solar energy providers?
8. One big advantage of Licensing legislation over legislative Franchising is the former is a law that will require “Implementing Rules and Regulations” (IRR) where better studied and comprehensive implementing rules and mechanisms can be added for enhanced and definitive achievement of the goals of the law. The IRR is easier to amend and update to address deficiencies. Conversely, HB8179 grants a mini-grid franchise to SPSBC who then is left alone to decide how to implement them. Too much “public interest” issues that would be left to the discretion of a private party for such a broad nationwide franchise.
9. We realize the significant business advantage and benefit to SPSBC to have the market “sword and armor” of a legislative mini-grid franchise. But it is an industry and service that can be offered by so many of our countrymen. Why tilt the playing field? Why arrogate that electric service sector to one dominant one? Why take away that solar mini-grid opportunity from millions of Filipinos?
Nonetheless SPSBC has already many competitive advantages being a major first mover with clearly coming major financial backing and unmatched project lobbying power. They will succeed truly competing in the open market place and should still be the dominant player.
We appeal to our Congressmen and Senators that what we Need is an “Inclusive” Mini-Grid Licensing Law Not a “Non-Exclusive” Mini-Grid Franchises for SPSBC et al. For people and country. Consumers will understand if SPSBC gets awarded the first Solar Mini-Grid License for specified unserved areas. Huwag lang pong first Nationwide non-exclusive Legislative franchisee for solar mini-grids.
Matuwid na Singil sa Kuryente Consumer Alliance Inc.
Matuwid.org
david.mskorg@yahoo.com.ph
