Energy prices will increase in Oriental Mindoro

For an additional 30 MW of power supply, Ormeco has a contract in place with four independent power sources for emergency power supply. After the National Electrification Administration annulled the competitive selection procedure between two independent power providers, the cooperative turned to an EPP plan.

"We awarded the EPSAs to DMCI Power Corporation for 10 MW, Power Systems Incorporated for 7 MW, IESSI Power Inc. for 3 MW and Top Team Power Generation for 10 MW. They are now in the process of setting up additional modular generators and power plants," said Dolor.

"They are old players here and the agreement with them is based on the latest approved contracts with the Energy Regulatory Commission using the same technology, that is, bunker fuel fired generators or plants."

The general manager of the emergency procurement scheme, Terra Movers and Development Corp., TCGR Energy Corp., and Ormeco, stated that the supply rate will be the true cost, without government subsidies. If renewable sources do not generate according to their contracted capacity, power rates are expected to rise. The NEA nullified the CSP in May, citing a violation of competition, transparency, and fairness. The cooperative is directed to provide remedial and mitigation measures to prevent electricity loss.

"This is the problem if we are going to use power from the EPP scheme. The subsidy from the Department of Energy under the Universal Charge for Missionary Electrification is waived and the tariffs for power generation is at true cost. We are hoping that our hydroelectric plants and the windmill farm in Puerto Galera generate enough power to mitigate the impact," Dolor added.

In anticipation of a year's completion, Ormeco is requesting fresh terms of reference with the NEA and another CSP. A 41-MW power supply contract was lost by the DMCI to Terra Movers and TCGR. To prevent higher electricity prices for consumers, Ormeco must abide by the NEA's order.