The reduction is caused by the end of the year-long emergency power supply agreement between the Occidental Mindoro Electric Cooperative and its power provider
MANILA, Philippines – For the past 12 months, Mheng Ferrer had always felt anxious during the “reading season” of their electric bills. That was until power rates in their community finally stabilized.
“Dati po kapag bubuksan namin yung resibo, nagdadasal ako na, ‘Lord, please, sana mababa na po,’” the 36-year-old housewife told Rappler on Monday, October 1.
(Before, when we opened the receipt, I would pray, ‘Lord, please, I hope it’s finally lower.’)
The previously high power rates in Occidental Mindoro forced Mheng to put her ice cream business on hold. As a result, her family in the town of San Jose accumulated multiple debts, with most of their income going toward expensive electric bills instead of other household necessities.
“Napupunta na lang po talaga yung sahod sa bills halos ng kuryente. Imbis na bibili kami ng isang kabang bigas, per kilo na lang kasi uunahin naming bayaran yung kuryente. Dati po nag-wawashing [machine] kami once a week pero dahil nga po sa nagtitipid, dalawang beses na lang po kami sa isang buwan naglalaba,” she said.
(Almost all of our wages go to the electric bills. Instead of buying 50 kilos of rice, we now buy it by the kilo because we prioritize paying for electricity. Before, we used our washing machine once a week, but to save money, we now only wash clothes twice a month.)
In August, Mheng paid P4,600 for her power bills, but her latest bill in September dropped to P2,000.
Other residents also posted celebratory photos on social media of their meter readings, showing a significant cutback in their utility expenses.
The reduction was caused by the end of the year-long emergency power supply agreement (EPSA) between the Occidental Mindoro Electric Cooperative Incorporated (OMECO) and its power provider, Occidental Mindoro Consolidated Power Corporation (OMCPC).
“Ang pagbaba ng power rates ay dulot ng pagpapatupad ng Samarica Power Supply Agreement (PSA) at pagtatapos ng implementasyon ng Emergency Power Supply Agreement (EPSA) noong 25 Hulyo 2024. Ibig sabihin, tayo ay muling makakatanggap ng subsidiya mula sa ating gobyerno,” OMECO announced.
(The decrease in power rates was due to the implementation of the Samarica PSA and the conclusion of the EPSA on July 25, 2024. This means we will be receiving subsidies from the government.)
Samarica refers to San Jose, Magsaysay, Rizal, and Calintaan.
From its implementation in September 2023, the agreement removed the Universal Charge for Missionary Electrification (UC-ME) state subsidy from the electric bills of over 87,000 consumers in the province. It resulted in an almost 37% increase in power rates across Occidental Mindoro’s towns, OMECO said.
On July 25, 2024 the year-long EPSA was finally concluded but the re-subsidized power bills reflected on the September billings.
From around P21 per kilowatt-hour (kWh) in the August billing, which was still under EPSA, the most recent post-EPSA OMECO residential power rate dropped to P12 per kWh. Commercial rates have also been lowered to around P10.60 per kWh.
Supply agreement
With the end of EPSA, the Samarica power supply agreement was granted provisional authority to operate, National Electrification Administration (NEA) Administrator Antonio “Nani” Almeda told Teleradyo Serbisyo on September 21.
The agreement’s implementation had previously been blocked by the Energy Regulatory Commission (ERC) due to incomplete power components from OMCPC, which led to the implementation of EPSA.
“Nabigyan na ho natin ng solusyon at ang mga [konsyumer] ng Occidental Mindoro ay makararanas na ng no-brownout except for isolated cases. Sapat na po ang kanilang power supply at nakahanda na ho ang Occidental Mindoro para pumasok ang mga industriya,” Almeda said.
(We’ve found a solution, and consumers in Occidental Mindoro will now experience no power outages except in isolated cases. Their power supply is sufficient, and Occidental Mindoro is now ready to welcome industries.)
Almeda also encouraged OMECO to start processing a competitive selection process (CSP) for a new power provider, anticipating the expiration of the current agreement within three years.
OMECO power provider OMCPC drew flak from residents in early 2023 due to a supply crisis resulting in 20-hour daily power outages in the province.
As of September 24, OMECO has a 35-megawatt contracted capacity of power supply out of a 27.41-megawatt maximum load demand, showed their recent outlook. – Rappler.com
Chris Burnet Ramos is a former Aries Rufo Journalism fellow. He will be graudating magna cum laude at the Polytechnic University of the Philippines with a degree in journalism.
