Oriental Mindoro power coop defends high rates, welcomes probe

newsinfo / Regions Regions Oriental Mindoro power coop defends high rates, welcomes probe By: Madonna T. Virola - @inquirerdotnet Inquirer Luzon / 08:34 AM July 25, 2026 Share: INQUIRER FILES CALAPAN CITY, Oriental Mindoro — The Oriental Mindoro Electric Cooperative (Ormeco) has defended the province’s high electricity rates, saying it did not pass on the full cost of power to consumers and expressing support for an investigation into issues surrounding electricity charges. In a statement released Friday, July 24, Ormeco said it recognized the burden of higher electricity bills on Mindoreño households and acknowledged consumers’ right to seek answers.

The statement came a day before a planned protest by the Mindoro Consumer Coalition, which is demanding lower electricity rates and an investigation into the cooperative and the National Electrification Administration (NEA) over alleged irregularities in the Competitive Selection Process (CSP) for power supply contracts. Article continues after this advertisement READ: Consumer group seeks probe into Oriental Mindoro’s power situation FEATURED STORIES NEWSINFO Kiyapo intensifies into severe tropical storm; Signal No. 3 raised NEWSINFO Sandiganbayan convicts Napoles, ex-DAR exec over P50-M ‘ghost’ projects NEWSINFO Ombudsman alleges Romualdez’s ‘kickbacks’ funneled in corporate entities Ormeco clarified that while the actual cost of purchased electricity in May 2026 reached P18.

2907 per kilowatt-hour (kWh), consumers were billed only P14.9177 per kWh, with the cooperative initially absorbing the P97.71 million difference.

It said the recovery of the deferred amount is subject to a formal petition before the Energy Regulatory Commission (ERC), which evaluated six recovery scenarios to minimize the impact on consumers. The cooperative also disputed claims that electricity rates had already reached P21 per kWh, saying the figure was merely an estimate and not the actual rate charged. It said the official electricity rate for July 2026 is P17.

2278 per kWh, as reflected in its monthly rate publication. Ormeco stressed that it does not profit from higher generation charges, explaining that it operates as a non-stock, non-profit electric cooperative and that generation charges are pass-through costs paid directly to power suppliers. Article continues after this advertisement READ: Lightning strike triggers province-wide blackout in Oriental Mindoro According to the cooperative, the spike in electricity costs was primarily caused by its reliance on a temporary Emergency Power Supply (EPS), which carries higher generation costs and is not covered by the Universal Charge for Missionary Electrification (UCME) subsidy.

It said the emergency arrangement was necessary while new suppliers under the province’s 57-megawatt Competitive Selection Process await provisional authority to operate from the ERC. Article continues after this advertisement The cooperative also cited higher global fuel prices triggered by the Middle East crisis and the national government’s declaration of a State of National Energy Emergency in March 2026 as contributing factors. Ormeco further noted that the ERC’s approval in October 2025 of the National Power Corp.’

s petition increasing the Subsidized Approved Generation Rate (SAGR) from P7.39 to P9.2464 per kWh also affected electricity prices, describing it as a nationwide policy beyond the cooperative’s control.

The electric cooperative said it expects generation costs to decline once new power plants with a combined 105.5 MW contracted capacity become fully operational. It added that it has issued demand letters and implemented plant performance monitoring protocols for suppliers that have yet to commence operations.

As a consumer relief measure, Ormeco said the ERC has suspended electricity disconnections for unpaid bills until October 2026. Consumers using 200 kWh or less per month may also pay their bills in installments for at least three months. Addressing calls for an investigation, the cooperative said it welcomes transparency and will fully cooperate with any inquiry by the Department of Energy and the ERC.

It noted that Rep. Alfonso Umali Jr. has already requested a comprehensive review by the two agencies.

Ormeco also said it regularly publishes its monthly electricity rates and remains open to dialogue with consumer organizations through its Member Consumer Owners Organization (MCOO) councils across Oriental Mindoro’s 14 municipalities and Calapan City. Your subscription could not be saved. Please try again.

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The cooperative said it shares the public’s goal of achieving “more affordable, reliable and transparent electricity service” for all Mindoreños. /das READ NEXT Oriental Mindoro power coop defends high rates, welcomes probe First tranche of P