Oriental Mindanao electric co-op seeks ERC nod on June rate increase

Oriental Mindoro. Inquirer files.

CALAPAN CITY, Oriental Mindoro — The Oriental Mindoro Electric Cooperative (ORMECO) is requesting the Energy Regulatory Commission (ERC) to approve a power adjustment in its generation charge.

In a letter dated June 19, 2026 addressed to ERC Chairman Francisco Saturnino Juan, General Manager Engr. Humphrey Dolor notified the regulator of the proposed adjustment covering the June 2026 billing cycle.

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According to Dolor, the rate hike stems mainly from the cooperative’s continued dependence on more expensive emergency power supply.

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This situation persists because new suppliers selected under ORMECO’s 57‑megawatt (MW) Competitive Selection Process (CSP) have not yet begun commercial operations as scheduled.

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“Of the 42 MW contracted power supply and scheduled for commercial operations, 24 MW still remains unavailable and has yet to commence service,” Dolor said, adding that this prevents the cooperative from fully shifting to more economical and stable power sources that were meant to replace temporary supply arrangements.

Under the proposal, generation charge will rise by P0.4043 per kilowatt‑hour (kWh) — moving from P17.8864/kWh recorded in May 2026 to P18.2907/kWh effective this month.

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Dolor explained that the adjustment has become unavoidable, noting that rising global fuel prices — driven by ongoing geopolitical tensions in the Middle East — have further increased operational expenses.

“Many will be upset with ORMECO because of this adjustment,” Dolor acknowledged.

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“But our member‑consumers and owners can rest assured: once the full 57 MW supply under our Competitive Selection Process is fully in place, our difficulties will be eased. You will be able to smile at me again when we meet — because the situation will finally improve.”

In a message on Monday, June 22, Dolor said that they are expecting that the request for the increase will be granted and that the letter is just for formality.

“The letter is for formality only and expecting no adverse findings, the same would be granted. We already implemented the staggered increase in the rates but the cooperative cannot afford anymore to make fund advances as it may cause the cooperative to collapse,” Dolor said.

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He added that ORMECO had already made P97 Million in advances last month and it may reach P150 Million if the payment would not be collected as the supplier would not be paid, a situation that would pose a bigger problem. /mr