Another increase in power rates has been announced by the Oriental Mindoro Electric Cooperative (ORMECO), with residential consumers facing a new rate of P15.3907 per kilowatt-hour (kWh) this September.
The rate hike, according to ORMECO’s FB post, is attributed to a combination of factors, including a decline in renewable energy generation, higher generation rates of emergency power providers, and system losses.
The main reason for the rate increase is a 9.32% decline in power generation from renewable energy sources, such as wind and hydro power, ORMECO said. The contribution of these sources to the overall power supply dropped from 31.35% to 22.03%.
A shortage in wind power production from supplier Philippine Hybrid Energy Systems Inc. (PHESI) and the unexpected breakdown of another renewable energy supplier, Catuiran Hydro Power Corporation (CHPP), forced the use of emergency power support to fill the supply gap, ORMECO explained.
Emergency power providers filled the gap created by the renewable energy shortfall, but at a higher cost, and the prices of emergency power providers are higher than those of subsidized independent power producers (IPPs), ORMECO added.
The electric coop pointed out that transmission losses increased by 4.244% compared to the previous month, while power pilferage also contributed to the overall cost and resulted in higher rates.
The cooperative stressed that any rate increase does not result in additional income for ORMECO, as it is a non-stock, non-profit organization.
All payments go directly to power suppliers and other agencies, as mandated by law, ORMECO said.
The coop also said that the exact amount of each payment is reflected in the statement of account, following the unbundling of rates as required by Section 36 of the Electric Power Industry Reform Act (EPIRA) of 2001.
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