Oriental Mindoro utility raises generation charge in June bills

Oriental Mindoro Electric Cooperative (ORMECO) announced a rise in its generation charge for the June 2026 billing cycle, increasing the rate from P17.8864 per kilowatt-hour (kWh) to P18.2907 kWh. This marks the second consecutive month the cooperative has adjusted its rates, with the latest change effective on June bills. The adjustment comes amid ongoing power supply challenges and the need to recover deferred generation costs. ORMECO attributed the increase to the partial recovery of generation costs from May, which amounted to P97.71 million. The cooperative stated that it had not fully recovered the expenses incurred during that period, leading to a lower generation rate of P14.9177/kWh for consumers. To address this shortfall, ORMECO has sought approval from the Energy Regulatory Commission (ERC) to recover the deferred costs through the June billing cycle. The cooperative also highlighted the impact of the ERC's decision to suspend electricity disconnections nationwide for three months, covering bills from May to July 2026. This policy, intended to support consumers during economic hardship, affected ORMECO’s ability to collect revenue and manage its finances effectively. ORMECO emphasized that its current reliance on Emergency Power Supply (EPS) is a key contributor to the rising costs. The cooperative is waiting for new power providers to begin operations under the province’s 57-megawatt Competitive Selection Process (CSP). However, these providers have not yet received their Provisional Authorities to Operate (PAOs) from the ERC, delaying the addition of new power capacity. Furthermore, the cooperative noted that renewable energy sources have contributed little to the power supply, forcing it to depend more heavily on costly emergency generation. This dependency has led to increased operating expenses, which are now being passed on to consumers through the higher generation charges. The situation reflects broader issues facing Oriental Mindoro, where power supply instability has persisted for several months. The province has been relying on EPS to meet demand while awaiting the commissioning of new generation facilities. These projects were expected to provide a more reliable and economically viable electricity supply, but delays in regulatory approvals have slowed progress. ORMECO has informed members that the higher generation charge will remain in effect until the new power providers are operational and can contribute to the grid. Until then, the cooperative will continue to rely on emergency measures to ensure uninterrupted service, even at the expense of higher consumer costs. Consumers have expressed concern over the rising rates, particularly given the economic pressures faced by many households. Some have called for greater transparency regarding how the costs are calculated and whether alternative solutions might be available to reduce expenses. Meanwhile, local officials have urged the ERC to expedite the processing of PAOs to help stabilize the power sector. As the province waits for the new generation facilities to come online, the immediate focus remains on managing the financial burden placed on consumers. ORMECO has reiterated its commitment to maintaining service quality and ensuring that the cooperative remains financially sustainable. It has also pledged to keep members informed about developments related to the power supply and potential future adjustments to rates.