The National Electrification Administration (NEA) is ramping up efforts to assist the Occidental Mindoro Electric Cooperative, Inc. (OMECO) as an electricity crisis looms over its franchise area after one of its power suppliers suspended operations.
The Occidental Mindoro Consolidated Power Corp. (OMCPC), which supplies 70 percent of electricity in the province, temporarily shut down its operations after fuel stocks ran out at 11 a.m. on November 23.
As a result, OMECO reported that several areas across the province had to deal with a power interruption on the same day, except for the municipalities of Abra de Ilog, Mamburao, and Sta. Cruz which source their electricity from the National Power Corp. (NPC).
The whole problem stemmed from the expiration of OMCPC’s provisional authority to collect subsidy on July 17, 2018.
OMECO, now currently placed under NEA management, was able to temporarily restore power supply in the affected areas at 5:30 a.m on November 24. The fuel supply, however, would only last for three days.
At the moment, the cooperative borrowed P28 million from its employees’ cooperative for the purchase of fuel to help keep its power distribution systems operational.
“The delivery of P28 million already negotiated and approved will last for 10 days,” OMECO Project Supervisor/Acting General Manager Cesar Faeldon said.
The whole problem stemmed from the expiration of OMCPC’s provisional authority to collect subsidy on July 17, 2018. Without the subsidy entitlement, OMCPC would not be able to purchase fuel for the power plant.
Since then, OMECO and OMCPC have been advancing payments for the cost of fuel for the power plant while waiting for the approval by the Energy Regulatory Commission (ERC) of the subsidy entitlement extension.
Earlier, OMCPC announced its temporary suspension of operations as it could no longer advance the cost of fuel without collection from the Universal Charge for Missionary Electrification fund.
Both NEA and NPC were also ordered to ensure that there will be no power interruption in the meantime.
While OMECO was able to restore power supply in Occidental Mindoro, this is not going to be enough to solve the crisis, so it has turned to NPC for help.
On November 22, OMECO issued a resolution requesting the NPC to ease Occidental Mindoro’s power crisis by delivering at least 20 megawatts of power capacity (MW), pending ERC’s decision on the subsidy entitlement of OMCPC.
On November 23, NEA Administrator Edgardo Masongsong issued office orders designating Faeldon as OMECO’s Project Supervisor and Acting General Manager, and Engr. Felipe Radin and Romeo Acuesta as Technical Assistant and Financial Assistant respectively.
Energy Secretary Alfonso Cusi also directed NEA and NPC to “exhaust all available remedies and implement all necessary actions” to immediately restore power in the province.
Both NEA and NPC were also ordered to “ensure that there will be no power interruption in the meantime that the ERC has yet to issue final authority to collect subsidy.”
OMECO is classified as an extra large EC and is rated C by the NEA based on the 2017 EC Overall Performance Assessment. It has 78,539 household connections covering nine municipalities of Occidental Mindoro.
