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Manila Bulletin devider Philippines devider Luzon devider Oriental Mindoro coop urges ERC to approve power rate hike petition

Oriental Mindoro coop urges ERC to approve power rate hike petition

Published Jun 20, 2026 06:01 pm
CALAPAN CITY, Oriental Mindoro – The lone electric distributor of this province has requested the Energy Regulatory Commission to approve their petition to increase power rates to enable them to recover the long-delayed portion of their generation costs amounting to P97.7 million.
In a letter addressed to Francisco Saturnino Juan, ERC chairperson, dated June 19, 2026, Oriental Mindoro Electric Cooperative (ORMECO) General Manager Humphrey A. Dolor said the actual generation rate has increased from P17.8864/kWh to P18.2907/kWh in May 2026 or an increase of P0.4043 per kilowatt-hour representing the actual cost of power procurement.
Dolor said that despite the increase, ORMECO deferred the recovery of P97,709,159.50 in recoverable generation costs for the May 2026 billing period.
He said the increase in the generation charge was attributed to the continued reliance on emergency power supply and delay in the operation of 57 megawatts additional power which underwent a competitive selection process in 2024 and 2025.
ORMECO only implemented an adjusted P14.9177/kWh instead of the P18.2907/kWh to cushion the impact of sudden increase in power costs among member-consumers while ensuring the continuous delivery of electricity.
ORMECO laid down six alternative scenarios which they consider as most prudent approaches.
They identified two of the six scenarios as the most financially viable and consumer-responsive alternatives.
One approach, Scenario 4, is the non-imposition of additional recovery costs in the June 2026 billing to be followed by increases over two consecutive months.
The second, Scenario 5, implements a P1/kWh reduction beginning July 2026 followed by staggered recovery.
Dolor said Scenario 4 provides a reasonable balance between protecting consumers from abrupt increases in electricity rates and preserving ORMECO’s financial standing and operational reliability.
Scenario 4 will enable ORMECO to recover approximately 51 percent of the deferred amount in July 2026 and complete recovery in August 2026, Dolor said.
“ORMECO respectfully requests the Honorable Commission's approval of the proposed deferred recovery mechanism under Scenario 4, considering that the proposal is reasonable, transparent, financially prudent, and consistent with the objective of balancing consumer welfare with the financial stability necessary for the continuous delivery of reliable electric service,” ORMECO said.

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