Consumer group seeks probe into Oriental Mindoro's power situation

CALAPAN CITY, Oriental Mindoro — A newly formed citizens’ organization has called on authorities to review the steep rise in electricity rates imposed by the Oriental Mindoro Electric Cooperative (ORMECO), which has run up bills to as high as P18 per kilowatt-hour, with warnings this could climb further to P21/kWh.

In a statement on Monday, the Mindoro Consumers Coalition (MCC) said the rate increase has become an unbearable burden for households already struggling with rising commodity prices and ongoing economic pressures.

The group explained that the surge stems from the loss of national subsidies under the Universal Charge for Missionary Electrification (UCME) — a P30-billion annual fund managed by the National Power Corporation (NPC) through its Strategic Power Utility Group (SPUG), intended for island provinces not yet connected to the main Luzon Grid, including Mindoro, Romblon and Palawan. These subsidies are mandated under the Electric Power Industry Reform Act (EPIRA) of 2001.

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READ: Oriental Mindoro provincial board seeks probe into power woes

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According to the coalition, the subsidies were supposed to be restored once ORMECO completed a required Competitive Selection Process (CSP) to secure new power suppliers, as authorized by the Energy Regulatory Commission (ERC) in 2021.

An initial 2022 bidding for 41 megawatts of capacity was later voided by the National Electrification Administration (NEA) over irregularities. A second round in 2024 for 57 MW drew seven qualified Independent Power Producers (IPPs), with NEA issuing a Notice of Award in January 2025.

However, only two of the seven selected suppliers have begun operations, with the remaining five unable to comply due to financial and technical limitations. Until valid supply agreements are fully in place, UCME subsidies remain suspended — forcing consumers to pay the full, unsubsidized cost of power generation.

“ORMECO has not been transparent about these critical details in its public announcements,” the coalition said. “Right now, ordinary Mindoreños are bearing the full brunt of costs that were meant to be shared under national policy.”

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The group urged government agencies and the House of Representatives to immediately “investigate the bidding process and delays in securing compliant power suppliers; reinstate UCME subsidies while the review is ongoing; ensure full transparency in future supplier selection, and give consumers a voice in related decisions.

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MCC also wants regulators to ensure ORMECO “uphold the cooperative principle of public service over commercial burden.”

As of press time, ORMECO has yet to issue a formal response to the coalition’s statement, but in his Facebook page, ORMECO General Manager Humphrey Dolor wrote on Sunday: “The people and groups making noises now are the same group and people that caused the problem. History will tell, records will show.”/coa

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