ORMECO Uncovers Millions of Pesos of Power Theft Racket; Penalties Top P17M for Biggest Violator

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The Oriental Mindoro Electric Cooperative (ORMECO) has uncovered a syndicated electricity theft operation involving prominent businessmen and politicians, with financial records revealing penalties exceeding P50 million from identified perpetrators, officials said.

Analysis of ORMECO’s “Status of Apprehended Consumers” documents shows 35 major violators with outstanding balances totaling P45.7 million.

The largest single penalty recorded was P17.4 million, with several other penalties exceeding P1 million each.

“We discovered this was operated by organized groups,” ORMECO General Manager Humphrey Dolor said in a radio interview. “Some offenders have accumulated penalties of over P5 million individually.”

The cooperative’s records indicate varying levels of compliance among violators.

While some accounts show partial payments and downpayments – including one payment of P500,000 against a P17.4 million penalty – most accounts remain in “overdue” status.

Several high-value cases are scheduled for hearings, including one account with a P4 million penalty marked for an October 29 hearing.

Documents show some violators have refused to acknowledge notifications, with one account holder’s daughter declining to receive the notice.

The cooperative identified three syndicate groups operating across Oriental Mindoro, with connections possibly extending to other provinces.

Records show multiple accounts labeled as “Not Paying Regularly” or “Overdue,” with some penalties dating back several billing cycles.

Among the establishments involved are rice mills, fishing operations, and three gas stations.

Some commercial accounts have been “Included in power bill,” suggesting attempts to regularize their status.

According to Dolor, the theft has contributed enormously to ORMECO’s system losses, costing consumers P2 per kilowatt-hour in additional charges.

The cooperative has already seen a P0.31 per kilowatt-hour reduction in tariffs since beginning its crackdown.

Under Republic Act 7832, offenders face criminal charges and must pay differential billing computed over five years of theft.

Ormeco’s financial records show that many accounts are now “For Hearing” or “For Re-hearing,” indicating legal proceedings are underway.

“Some of the wealthy individuals are now negotiating settlements, while others face legal action,” Dolor said. “We’re treating this as a violation of the Anti-Pilferage Act rather than a political issue.”

ORMECO plans to file formal charges in court against more violators in the coming days.

Mindoro’s biggest power-theft case investigation remains ongoing.

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Bernardo Creative Ventures, Inc., the company behind Direk Fuels, Oriental Mindoro’s homegrown gas station chain, and Direk Builders, which rents out heavy equipment, is expanding its portfolio by venturing into online media and content production.

The company’s entry into news media is not surprising, as its founder and CEO, Romel “Direk” Bernardo, was a television writer, producer, and director for over 15 years. From 2002 to 2007, he served as a researcher, writer, and producer for GMA-7’s top-rating show Imbestigador before becoming the executive producer for ABS-CBN’s award-winning documentary program, The Correspondents.

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