Occidental Mindoro residents are set to experience a staggering 37 percent increase in their electricity rates in the upcoming September billing.

This hike is due to the Occidental Mindoro Electric Cooperative’s (OMECO) recent entry into the Emergency Power Supply Agreement (EPSA) on July 25.

OMECO explained in a recent radio program that the move to join the EPSA aims to address the impending electricity supply shortfall.

This challenge has arisen from the Energy Regulatory Commission’s (ERC) decision not to grant the Provisional Authority to Operate to the SAMARICA plant of the Occidental Mindoro Consolidated Power Corporation (OMCPC), the main electricity supplier in the province.

“According to National Electrification Administration Admin Almeda, they have already spoken with the ERC Chair and the SAMARICA plant will not be approved. This means it will not be given a Provisional Authority to Operate,” said OMECO Information Specialist Mary Grace Dagdagan.

“There are three components to the SAMARICA plant: solar, diesel, and bunker. Currently, only the bunker is available, with solar and diesel components still under construction,” she added.

Under the EPSA, electricity from the SAMARICA plant of OMCPC will be charged to member-consumer owners (MCO) at its full value or True Cost Generation Rate (TCGR).

This means they will pay between P16.67 and P20.70 per kilowatt-hour (kWh) based on the P53.57 crude oil price. This pricing structure is because the government does not subsidize the EPSA.

OMECO’s data suggests that the electricity charge would be lower at P16.6748 per kWh if the Sablayan and MAPSA plants of OMCPC were operating at full capacity, in conjunction with the Pag-asa Grain Center or PGCI.

“We need to maximize our two plants, Sablayan and Mamburao, which should ideally be subsidized with PGCI. This would be beneficial as it would result in a lower dispatch of electricity from the SAMARICA plant, helping reduce our rates,” Dagdagan said.

To help consumers lower their electric bills, OMECO has urged them to apply for the lifeline rate program, especially beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps) of the Department of Social Welfare and Development (DSWD) who consume 20 kWh or less.

“Let’s conserve electricity. Be smart in how we use our power,” Dagdagan reminded consumers.

At the moment, there is no report on how long the EPSA will last. It is notable that the SAMARICA plant began operations in April, despite its pending permits, as a solution to the province’s power crisis earlier this year, following a directive by NEA Admin Almeda with the approval of the ERC.