Mindoro consumer group disputes electric coop’s rate cut explanation

CALAPAN CITY, Oriental Mindoro — The newly formed Mindoro Consumers Coalition (MCC) challenged the Oriental Mindoro Electric Cooperative (ORMECO)’s explanation for the recent P1-per-kilowatt-hour (kWh) rate cut, rejecting its claim that the reduction resulted from cheaper supply from a new independent power producer (IPP).

In a statement issued on Saturday, July 25, the group said the supply contracts covering Lots IV and VII under the 57-megawatt (MW) Competitive Selection Process (CSP) have been operational for a year now without any form of subsidy.

“Lots IV and VII under the 57 MW from the completed Competitive Selection Process have already been running for a year now without any subsidy up to the present. MCC believes the rate reduction is within the control of ORMECO management, and it is also within their capacity to raise rates again should they choose to,” the group said.

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The coalition also clarified that ORMECO’s statement claiming only two IPPs are operational refers solely to the 57-MW contracted supply and not the full power distributed across the province.

MCC likewise flagged what it described as inconsistencies in the utility’s reporting, questioning the lack of clarity behind the still-high power rates and absence of subsidies.

The group also raised concerns over system loss charges, noting that while ORMECO reports a 10-percent rate to the National Electrification Administration, actual charges reach 17.5 percent.

“Based on ORMECO’s statements, it remains unclear up to now why electricity rates remain high and why we do not receive any subsidies. And why does ORMECO report to the National Electrification Administration that system loss charges are at 10%, while the actual charge is 17.5%?” the group asked.

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ORMECO General Manager Engr. Humphrey Dolor issued a statement claiming that the P1.06/kWh reduction in the July billing was caused by the operation of new power plants under the 57 MW contracted through the CSP.

The consumer coalition staged a protest rally on Saturday to demand lower electricity rates and urge Congress and concerned agencies to investigate the power contracts entered into by ORMECO and its suppliers, seeking full transparency and accountability.