ERC says it acted promptly on power supply deals for Occidental Mindoro
THE ENERGY Regulatory Commission (ERC) has denied that the ongoing power crisis in Occidental Mindoro is due to the agency’s inaction, saying it acted promptly on the power supply agreements (PSA) filed by the supplier and distributor.
“The ERC wishes to emphasize that the PSAs filed by OMECO (Occidental Mindoro Electric Cooperative, Inc.) and OMCPC (Occidental Mindoro Consolidated Power Corp.) were provisionally resolved within 75 days from the day of filing in accordance with ERC’s rules, contrary to allegations of delay in matters regarding the PSAs,” ERC said in a statement on Tuesday.
Occidental Mindoro has been placed under state of calamity as the province experiences 20-hour daily power outages.
Based on OMECO’s website, the daily power supply available is only 13 MW while demand ranges from 27.78 to 28.73 MW.
In its statement, the regulatory body said that only two of the PSAs signed between OMECO and OMCPC were filed to the commission.
“These PSAs were already granted provisional authorities on 26 March 2022 and 10 June 2022. The provisional authorities allow the supply of around 12 MW (megawatts) from OMCPC to OMECO, and permit the flow of subsidies from the National Power Corporation (NPC) to OMCPC based on the ERC-approved rates,” the ERC said.
The ERC also said that it is ramping up efforts to resolve the applications of National Power Corp. (Napocor) for a Universal Charge for Missionary Electrification (UCME) hike.
“The ERC is mindful of the need to balance the subsidy requirements of off-grid customers, including Mindoro residents, with the impact of funding the subsidy collected from on-grid customers, given the increasing power rates also in the on-grid areas,” ERC said.
Napocor has proposed a hike in UCME to sustain off-grid services as diesel prices increase.
UCME funds Napocor’s operations, including those of its Small Power Utilities Group, which serves remote areas not connected to the grid.
Occidental Mindoro is one of two provinces on the island of Mindoro, located south of the northern mainland Luzon.
SENATE PROBE
Meanwhile, a senator has filed a resolution to probe and find solutions to the province’s power crisis.
“Due to the power supply deficit, OMECO has been announcing daily rotational power schedule in the province, with a cluster of towns only getting electricity for three and a half hours in a day,” Senator Sherwin T. Gatchalian said in Senate Resolution No. 576.
Mr. Gatchalian also noted that the provincial government has been compelled to tap into its emergency funds, made possible by the declaration of a state of calamity, to ensure that operations of public services, like healthcare, continue.
The provincial government, in a statement on Tuesday, said it is spending P10 million of its calamity fund to purchase fuel for generator sets for seven public hospitals.
Operations at the provincial capitol has also been temporarily cut to four days a week instead of five to help lessen electricity demand.
“Despite all announced efforts of various government agencies, the power crisis in Occidental Mindoro has been ongoing for years with no end in sight,” Mr. Gatchalian said, noting that the investigation should produce short, medium, and long-term solutions.—Ashley Erika O. Jose and Beatriz Marie D. Cruz
