By: Eoghan Olkeriil Ngirudelsang
KOROR, Palau – The debate surrounding the Palau Energy and Water Administration’s (PEWA) regulations authorizing the Palau Public Utilities Corporation (PPUC) to levy an adjustable surcharge, known as the “Distributed Energy Rate” (DER), took a notable turn during the latest hearing with the Senate’s Committee on Energy, Public Utilities, and Telecommunications (EPUT) on Oct. 23.
PEWA Director Eden Uchel had signaled in an Oct. 16 letter that she would attend the hearing voluntarily, adding that, should PEWA officials feel “threatened or harassed,” they would “exercise [their] right to walk out anytime.” This statement follows a similar incident months prior when Uchel and Minister Udui left a Senate hearing.
Director Uchel explained that their previous walkout involved legal repercussions, stating that the public might not fully understand the circumstances. In response, Senator Mariur clarified, “In that hearing, there was no threat to you,” further adding, “You came due to the Senate’s subpoena, and that is why when you walked out there were ramifications.”
After these initial clarifications, the hearing shifted to focus on consumer transparency in electricity billing. “We want to know how much kilowatt energy was produced in the power plant through diesel fuel because we want to subsidize only the electricity produced by diesel,” said Senator Inabo. “We do not want to subsidize electricity produced by solar energy. We need them to be separate and clearly shown.”
Senator Rudimch echoed this sentiment, noting, “With the solar rate at a fixed price of .1425 cents per kilowatt-hour, we want to know how much energy put into the grid was produced by solar.” This request supports EPUT’s position that subsidies should apply solely to diesel-generated energy, which is unclear under the current DER formula.
The committee further requested that PEWA obtain from PPUC detailed figures on curtailed energy, parasitic load, line losses, and other non-technical energy losses within the power system. “We should also start to impose requirements on energy loss so that PPUC may minimize energy loss and meet the system losses that are standards in utility systems around the world,” said Senator Inabo.
The hearing concluded on a constructive note, with Director Uchel stating that PEWA would consider EPUT’s recommendations to develop a formula for clearer billing, differentiating kilowatt energy derived from solar power versus diesel fuel.