The Oriental Mindoro Electric Cooperative (ORMECO) has addressed issues about rising electricity rates and frequent power interruptions during a recent meeting with Calapan City officials, explaining the complex factors behind recent challenges and outlining plans to improve service.

ORMECO General Manager Humphrey A. Dolor told the City Council that the cooperative operates on a non-profit basis, serving only as a collector of payments from consumers which are then distributed to various power providers and government agencies.

“Ang ORMECO ay non-stock, non-profit electric cooperative. Anuman ang pagtaas ng taripa o rate increase, wala pong dagdag na kita o perang pumapasok sa kaban ng kooperatiba,” Dolor said.

The general manager presented data showing ORMECO’s performance meets or exceeds regulatory standards for reliability.

The cooperative’s System Average Interruption Frequency Index (SAIFI) stands at 6.242, well below the maximum allowable 20 interruptions, he said.

Similarly, its System Average Interruption Duration Index (SAIDI) of 337.197 is far below the 2,700-minute standard, Dolor added.

Dolor revealed that ORMECO’s power rates remain among the lowest for off-grid areas in the Philippines.

“Higit na mababa ang power rate ng ORMECO sa mga SPUG Areas (Off Grid Coops) kung saan nitong taong 2024 ay nagkaroon pa ng pagkilala ang ORMECO bilang Top 5 sa may pinakamababang Taripa o Power Rate sa bansa,” he noted.

However, June saw a significant rate increase due to reduced generation from contracted renewable energy sources coinciding with peak demand.

This, he said, forced ORMECO to purchase more expensive power from Emergency Power Providers (EPPs) to avoid rotational brownouts.

The cooperative outlined several factors contributing to the rate hike, namely, renewable energy sources decreased from 29% to 20% of supply; EPP generation increased from 17.52% to 32.66%; higher system losses; inclusion of a 2024 business tax for Calapan City; and recovery of under-recoveries and universal charges.

Dolor addressed concerns about system losses, stating: “System loss is embedded in the system. Ngunit maaari natin itong mapababa sa pamamagitan ng mga line clearing, pagtatama o pag-aayos ng mga linya at pasilidad ng enerhiya at lahat ng pamamaraang makapagwawasto ng mga nawawalang kuryente.”

The GM explained that many power interruptions are beyond its direct control, often resulting from issues with power plants or transmission lines owned by other entities like the National Power Corporation (Napocor) and National Transmission Corporation (Transco).

ORMECO presented both short-term and long-term solutions to address power supply issues. A key initiative is pushing for approval of an additional 57-megawatt power supply contract, which would help reduce reliance on expensive EPPs.

“Kung naging matagumpay tayo noon sa pagkuha ng 41MW na additional supply marahil ay hindi natin nararanasan ngayon ang makapos at mapilitang bumili sa mas mahal na EPP na nagtulak upang magmahal din ang taripa o power rate,” Dolor said.

Dolor said the cooperative is committed to finding sustainable solutions and improving transparency.

He bared that ORMECO plans to continue engagement with local government units, barangay councils, and other stakeholders to disseminate accurate information about its operations and challenges.