CALAPAN CITY: The newly formed Mindoro Consumers Coalition (MCC) has challenged the Oriental Mindoro Electric Cooperative (ORMECO)'s explanation for a recent P1-per-kilowatt-hour (kWh) rate reduction, rejecting its claim that the cut was the result of cheaper power supplied by a new independent power producer (IPP).
In a statement issued on Saturday, the group said the supply contracts covering Lots IV and VII under the 57-megawatt (MW) Competitive Selection Process (CSP) had already been operational for a year and had not received any subsidy.
"Lots IV and VII under the 57 MW from the completed Competitive Selection Process have already been running for a year now without any subsidy up to the present. MCC believes the rate reduction is within the control of ORMECO management, and it is also within their capacity to raise rates again should they choose to," the group said.
The coalition also clarified that ORMECO's statement that only two IPPs were operational referred solely to the 57 MW of power contracted through the CSP and not the total power distributed across the province.
MCC also raised concerns over what it described as inconsistencies in the electric cooperative's reporting, questioning why electricity rates remained high despite the absence of subsidies.
The group specifically flagged system-loss charges, noting that while ORMECO reportedly declares a 10% system-loss rate to the National Electrification Administration, actual charges reach 17.5%.
"Based on ORMECO's statements, it remains unclear up to now why electricity rates remain high and why we do not receive any subsidies. And why does ORMECO report to the National Electrification Administration that system loss charges are at 10%, while the actual charge is 17.5%?" the group asked.
ORMECO General Manager Engr. Humphrey Dolor said in a statement that the P1.06-per-kWh reduction in July billing was caused by the operation of new power plants under the 57 MW contracted through the CSP.
The consumer coalition staged a protest rally on Saturday to demand lower electricity rates and urged Congress and concerned government agencies to investigate the power contracts entered into by ORMECO and its suppliers.
The group is seeking greater transparency and accountability in the province's electricity supply and pricing.- Inqurier/ANN
