The Oriental Mindoro Electric Cooperative (ORMECO) announced a significant decrease in electricity rates for August 2024, continuing a downward trend that began in June 2024.

The overall electricity rate for residential consumers has dropped by P2.9968 pesos per kilowatt-hour (kWh) since June, settling at P14.2949 pesos/kWh for August.

This substantial reduction is attributed to several factors, primarily lower generation rates, reduced system losses, and adjustments in universal charges.

The most significant contributor to the rate decrease is a P1.7145 pesos/kWh reduction in the generation rate. This drop is largely due to a remarkable increase in the share of Renewable Energy (RE) sources, which rose from 17.67% to 31.35% of the total energy mix.

The 13.67 percentage point increase allowed for a decreased reliance on more expensive Non-Renewable Energy (NRE) sources.

Additionally, ORMECO reported an 18.05% increase in energy purchases from subsidized power sources, shifting away from costlier emergency power supplies and non-subsidized providers resulted in a generation VAT reduction of P0.3627 pesos/kWh.

System losses have also seen improvement, with the rate decreasing by P0.3276 pesos/kWh due to a 1.79% reduction in system losses, from 13.80% to 12.01%. ORMECO attributes this improvement to intensified efforts to recover lost or stolen electricity.

Universal charges saw adjustments as well.

The conclusion of the additional Universal Charge for Missionary Electrification (UCME) for the years 2013 and 2014 contributed a further reduction of P0.0433 pesos/kWh to the electricity tariff.

In an Ormeco infographic posted on FB, it shows a clear downward trend in electricity rates from June (P17.2917 pesos/kWh) through July (P16.7433 pesos/kWh) to August 2024.

ORMECO’s announcement also breaks down the August 2024 rates by consumer category:

• Residential: P14.2949 pesos/kWh
• Commercial: P13.1852 pesos/kWh
• Industrial: P12.7946 pesos/kWh
• Public Buildings: P12.9062 pesos/kWh
• Street Lights: P14.9964 pesos/kWh

While celebrating this as good news for the cooperative and its member-owners, ORMECO reminds customers that individual electricity bills will still depend on consumption patterns.

The cooperative also reminds consumers to practice energy conservation, emphasizing that despite lower rates, bills can still increase if usage is not monitored.

“Be smart in using electricity,” ORMECO advised. “Remember that with every effort to save electricity, not only do we reduce our expenses, but we also contribute to lowering the overall price of electricity.”

The rate decrease is expected to provide economic relief to member-consumers in Oriental Mindoro.