Ormeco Defends High Power Rates, Welcomes Probe; Mindoreños Still Paying P17.23 per kWh

CALAPAN CITY, Oriental Mindoro — The Oriental Mindoro Electric Cooperative (Ormeco) has defended the province's steep electricity rates, insisting it did not pass on the full cost of power to consumers. In a statement released Friday, July 24, the cooperative acknowledged the burden on Mindoreño households and welcomed a full investigation into the issue.

The statement came a day before a planned protest by the Mindoro Consumer Coalition, which is demanding lower rates and an inquiry into Ormeco and the National Electrification Administration (NEA) over alleged irregularities in the Competitive Selection Process (CSP) for power supply contracts.

What Ormeco Says About the Rates

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. The cooperative initially absorbed the P97.71 million difference. The recovery of this deferred amount is subject to a formal petition before the Energy Regulatory Commission (ERC), which evaluated six recovery scenarios to minimize consumer impact.

The cooperative disputed claims that rates had already reached P21 per kWh, saying the figure was an estimate, not the actual rate. 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, operating as a non-stock, non-profit electric cooperative. Generation charges are pass-through costs paid directly to power suppliers.

Why Rates Spiked

According to Ormeco, the spike was primarily caused by 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. The emergency arrangement was necessary while new suppliers under the province's 57-megawatt CSP await provisional authority from the ERC.

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. Additionally, 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 affected prices, a nationwide policy beyond Ormeco's control.

What Relief Is Available

Ormeco expects generation costs to decline once new power plants with a combined 105.5 MW contracted capacity become fully operational. It has issued demand letters and implemented plant performance monitoring protocols for suppliers yet to start operations.

As a consumer relief measure, the ERC has suspended electricity disconnections for unpaid bills until October 2026. Consumers using 200 kWh or less per month may pay their bills in installments for at least three months.

Ormeco Welcomes Investigation

Addressing calls for an investigation, Ormeco said it welcomes transparency and will fully cooperate with any inquiry by the Department of Energy and the ERC. Rep. Alfonso Umali Jr. has already requested a comprehensive review by the two agencies.

The cooperative 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.

Ormeco said it shares the public's goal of achieving 'more affordable, reliable and transparent electricity service' for all Mindoreños.

FAQ

Why are electricity rates in Oriental Mindoro so high?

Rates spiked due to reliance on a temporary Emergency Power Supply, higher global fuel prices from the Middle East crisis, and a national energy emergency declared in March 2026.

What is the actual rate Mindoreños are paying?

The official rate for July 2026 is P17.2278 per kWh, not the P21 per kWh figure some have claimed.

Is Ormeco profiting from the higher rates?

No. Ormeco is a non-stock, non-profit cooperative. Generation charges are pass-through costs paid directly to power suppliers.

What relief is available for consumers?

Disconnections for unpaid bills are suspended until October 2026. Consumers using 200 kWh or less per month may pay in installments for at least three months.