The Energy Regulatory Commission (ERC) stressed it has acted timely to address the rotational power outages being experienced in the province of Occidental Mindoro and alleviate the plight of electricity consumers.
ERC said it is fully aware of the urgency to resolve issues involving Occidental Mindoro Electric Cooperative’s power supply agreements.
“We do not want OMECO’s member-consumers to take the brunt of its failure to enforce its contractual obligations. As such, we see that the Commission issued the necessary resolution as soon as practicable,” ERC commissioner Alexis M. Lumbatan said.
The regulator stressed that its previous orders were clear, it and it is now incumbent upon OMECO and Occidental Mindoro Consolidated Power Corp. (OMCPC) to abide by the contracts they have entered into.
The ERC previously directed OMECO to source power from OMCPC in accordance with the provisions of the three Power Supply Agreements (PSAs) it executed in January this year, as a result of the successful conduct of competitive selection process (CSP), to address its total load requirements and to ensure the continuous and unhampered supply of power within its franchise area.
It repeatedly directed OMECO to protect the interest of its consumers by providing updates as to the commercial operations date and on the proposed timelines for the conduct, completion, and conclusion of its CSP.
Since 2017, the ERC has issued about 10 orders to OMECO and granted them around seven times an extension period to comply with the said directives.
“We wish to emphasize that OMECO’s contractual obligations must now be upheld and enforced so that no act of extension or sanction from the Commission would be necessary. The parties themselves have freely and willingly bound themselves by entering into that contract. As such, obligations arising from contracts must be complied with in good faith as the same are binding between the parties,” Lumbatan said