FOR the second time in less than a week, the Department of Trade and Industry (DTI) has infuriated the public with a proposal that serves neither the interests of businesses and entrepreneurs, nor consumers. The first was an abortive attempt to impose costly registration requirements on online sellers’ advertising and promotions. That was quickly withdrawn after the DTI faced savage resistance online. But the latest proposal is even more ill-timed and could have far-reaching, damaging effects on the country’s efforts to improve energy security.
Earlier this week, the DTI released an as-yet unnumbered draft department administrative order (DAO), in which it seeks to establish mandatory technical standards and certification requirements for solar energy system components in the Philippines to ensure safety, quality and reliability. Using Republic Act 9513, or the Renewable Energy Act of 2008, and other references such as the guidelines of GSIS Ginhawa Solar Energy Loan Program as a legal justification for interfering, the DTI intends to mandate Philippine certification of solar energy components, whether imported or domestically produced, so that they “comply with Philippine National Standards.” The products covered include solar photovoltaic (PV) modules, inverters, battery energy storage systems, rapid shutdown devices, charge controllers and PV cables.
The justification for this intervention, according to the DAO, is that “over the years, various incidents have been reported involving potential hazards associated with solar energy systems, including panel overheating, electrical fires from faulty wiring or inverters, battery swelling, leakage or explosions, structural or roof damage due to improper installation and electric shock hazards during operation or maintenance.” Therefore, in order to safeguard consumers and promote product reliability, the DTI Bureau of Product Standards (DTI-BPS) will be tasked to develop standards and conduct testing, certification and monitoring of the affected products.
Under the proposed new rules, foreign and domestic manufacturers will be required to apply for a safety certification mark license, or if one has not already been obtained, an import commodity clearance for each shipment of any of the affected products. In addition, importers with or without the product safety certification license will have to apply for a statement of confirmation per shipment. The draft DAO also lists the extensive documentary and fee requirements involved.
This all seems to be a reaction to concerns recently expressed by distribution utility Meralco, which drew attention to unlicensed and potentially substandard solar installations. Solar installations in general, mainly of the rooftop variety, have accelerated rapidly in the wake of the war-induced energy crisis. There have not been widespread reports of accidents or damage caused by solar installations, contrary to what DTI has implied, but there are legitimate risks. Electrical equipment of any sort can be dangerous, if the products are not well-made, or installed by unqualified or careless persons. Making sure that solar energy components have been tested and meet safety and reliability standards is a perfectly reasonable demand.
However, the solar industry is highly competitive, and one way in which sellers and installers ensure they remain in business is to highlight their expertise and the quality of their products. The vast majority of solar components available in the Philippines, including those that are made here, are certified by the US-based Underwriters’ Laboratories, the German equivalent TÜV Rheinland, or by an IEC (International Electrotechnical Commission) certified lab, under the joint International Standards Organization/IEC standard 17025.
In essence, what the DTI is proposing, completely unnecessarily, is to ignore all of those and recertify solar components on its own through DTI-BPS, according to standards that have not yet been codified, and through laboratories that have not yet been certified to carry it out. And when those standards finally are formalized, they are very likely to copy those already internationally enforced by the above organizations. In the meantime, for however long it takes the DTI to put the program together, the solar option for consumers and businesses eager to secure more affordable and secure energy will be unavailable. And of course, when it finally becomes available again, the time, paperwork and fees involved will simply add to costs, for no vital reason.
We do appreciate the DTI’s concern for product and consumer safety, because after all, that is a part of its mandate. The other part is to facilitate the conduct of responsible business by Philippine enterprises; the proposed DAO addresses the first part, but absolutely fails at the second. A better solution would be to mandate and strictly enforce compliance with the existing international standards, rather than reinventing the wheel, and we strongly urge the DTI to take that course instead.
