NEA clears Occidental Mindoro power supply deal

MANILA, Philippines – The National Electrification Administration (NEA) has cleared the guarantee for the long-awaited power supply agreement (PSA) that will provide sufficient and reliable electricity to the province of Occidental Mindoro.

The guarantee is necessary to seal the agreement between generators Mindoro Geothermal Power Corp. (MGPC) and the Occidental Mindoro Consolidated Power Corp. (OMCPC) and the Occidental Mindoro Electric Cooperative Inc. (OMECO).

In a statement, NEA said the PSA Guarantee for OMECO is the first released under its new charter, Republic Act 10531 also known as the National Electrification Administration Reform Act of 2013.

Under the charter, the state-run agency is mandated to implement the government’s rural electrification program and may act as guarantor for the electric cooperatives’ power purchase transactions with independent power suppliers.

“NEA is supportive in all endeavors to ensure reliability of power supply for the electric cooperatives to serve better their member-consumers. A stable power supply will redound to better electricity service, more livelihood opportunities and improved quality of lives for the people of Occidental Mindoro,” NEA administrator Edita S. Bueno said.

OMECO acting president Rodolfo Plopinio expressed their consumers’ gratitude to NEA for approving the PSA guarantee, which he says, was the key to ending their electricity woes.

“We have been praying for this for over a year now. We thank the NEA Administrator for understanding how our problems with energy supply has adversely affected the lives of our 65,000 consumers,” said Plopinio.

The PSA was signed by OMECO and NEA way back in February 2014. Last November, the electric cooperative asked the state-run agency to clear the PSA guarantee since it already agreed to conditions and completed submitting all documentary requirements.

The province’s capital town, San Jose, was once dubbed as the “Blackout Capital of the Philippines” due to power outages that last between six to twelve hours a day because of inadequate power supply and disconnection from the main grid.

Insufficient energy supply has not only affected the daily lives of its consumers, but has also hampered local business activities and slowing economic growth in the province.

OMCPC is constructing a 20-megawatt (MW) diesel power plant in the province.

On the other hand, MGPC is a subsidiary of renewable energy company Emerging Power Inc., which is building a 40-MW Geothermal Power Plant in Naujan, Oriental Mindoro. The project is expected to begin commercial operation by 2017 and will be able to supply electricity to more than 250,000 homes in Oriental and Occidental Mindoro.

“We fully support initiatives of the private sector, government and electric cooperatives to attain stable and clean energy with lower electricity rates,” EPI president Martin Antonio Zamora said.