Power distributor Oriental Mindoro Electric Cooperative (ORMECO) announced Friday a decrease in electricity rates for December 2024, with residential consumers benefiting from a P1.698 peso reduction per kilowatt-hour (kWh), bringing rates down to P14.3135 pesos/kWh.

The reduction is one of the most noticeable monthly decreases in 2024, providing relief to consumers amid ongoing energy shortages and inflation pressures.

A major factor in the rate reduction is the decreased reliance on emergency power providers (EPPs), with usage dropping by 36.35 percent, equivalent to 4,020,052 kWh. This reduction in expensive emergency power procurement has contributed to the overall cost savings.

The decrease is primarily driven by a 57.59 percent surge in renewable energy production, which contributed an additional 5,052,118 kWh to the power grid.

This shift towards green energy sources represents a milestone in the country’s commitment to its renewable energy goals under the Philippine Energy Plan 2020-2040.

“This transition to renewable energy sources is not just an environmental victory but a economic one for our consumers,” said ORMECO in its advisory.

The utility serves the Oriental Mindoro province, including Calapan City, one of the fastest-growing urban centers in the MIMAROPA region.

The rate structure shows a tiered pricing system across different sectors: Commercial establishments: P13.2038 pesos/kWh; Industrial users: P12.8132 pesos/kWh; Public buildings: P12.9249 pesos/kWh; and Street lighting: P15.0150 pesos/kWh.

The trend analysis shows a consistent pattern of rate moderation since July 2024, when prices peaked at approximately P17 pesos/kWh.

Regular Independent Power Producers (IPPs) experienced a modest 2 percent decline in production, reducing output by 338,851.91 kWh.

However, this reduction was more than offset by the increased renewable energy generation, demonstrating the growing reliability of renewable power sources.