(Koror, Palau) Public outcry erupted in Palau following the announcement of new energy rates that included the cost of solar power purchased from an Independent Power Producer (IPP). The rates, originally scheduled to begin May 1, 2024, sparked immediate opposition from the Olbiil Era Kelulau (OEK), particularly the Senate.
Citing excessive pricing and a lack of transparency, the Senate passed a joint resolution on April 9th to nullify the new rates set by the Palau Energy and Water Administration (PEWA). The resolution, authorized by Title 2 of the Palau National Code, specifically targeted the 4-cent-per-kilowatt-hour increase linked to the IPP project.
The OEK also demanded a clearer billing system that distinguishes charges for IPP-generated solar energy from those associated with fossil fuel power. The resolution has been forwarded to the House of Delegates for consideration.
President Surangel Whipps Jr. responded to public concerns by convening a meeting with the Palau Public Utilities Corporation (PPUC). At a press conference, Whipps announced that the PPUC had withdrawn the proposed rates until July and would recalculate them due to potential errors.
President Whipps expressed his belief that the initial calculations were incorrect. “It’s a mistake,” he stated. “Admit you made a mistake, and let’s correct it.”
However, in a letter to the editor (page 4), PPUC CEO Frank Kyota attributed the proposed 4-cent increase primarily to rising diesel fuel costs, not the inclusion of the IPP project.
While the OEK advocates for separate billing for IPP and fossil fuel-generated power, President Whipps favors combining them into a single energy bill that reflects all cost savings.
PPUC CEO Kyota confirmed in his letter that the corporation will be reviewing its tariff calculation methods to better account for the integration of solar energy and potential cost reductions from the IPP project.