Oriental Mindoro electric coop seals supply deal with another power firm
POSTED: Wednesday, December 4th, 2013
Second power deal this month
CALAPAN CITY – Another power company has signed up a power supply deal with Oriental Mindoro’s lone electric cooperative, amidst the threat of a take-over being poised by another group who claims they are the truly power coop representing electric consumers in the said province.
In a regulatory filing made public last Monday (November 25) OrMin Power Company, a subsidiary of listed Jolliville Holdings Corp, has inked a 25-year power supply contract with Oriental Mindoro Electric Cooperative, Inc (Ormeco).
Under the agreement, Ormin Power shall sell the 6-megawatt output of its 10-MW Inabasan mini-hydroelectric power plant in the town of San Teodoro in Oriental Mindoro to Ormeco.
Ormeco shall pay a rate of P6 per kilowatt-hour subject to the approval of subsidies from the government for off-grid power generation.
The agreement is subject to the approval of Energy Regulatory Commission (ERC), which is reviewing all transactions made by the government and the private sector regarding power or electricity.
The signing of the said agreement was made in the middle of Ormeco, under National Electrification Administration (NEA), being threatened by another group representing Ormeco but is under the care of Cooperative Development Authority (CDA). The latter group is now threatening to take over the whole management and operations of the said electric cooperative now that they elected a new set of board of directors which they said truly represent the electric consumers in Oriental Mindoro.
Ormin Power earlier topped the bidding that Ormeco held for additional power supply due to the electricity shortage brought about by growing demand and the phase out of National Power Corp’s (Napocor) generating plants on the said island province.
The supply from Ormin Power will be dispatched to Calapan City and nearby towns, as well as to tourist hub Puerto Galera, all in Oriental Mindoro.
Jolliville is the holding firm of the Ting group, a local conglomerate with interests in leasing, management services, property development and land banking, and a local waterworks system.
The power deal is the second within this month that Ormeco officially sealed. Last November 12, the lone electric cooperative in the province signed an Electricity Supply Agreement (ESA) with big-time power player DMCI Power Corporation to start construction and eventually operate a 15-megawatt bunker-fired diesel power plant also in this city.
Based on documents, the future DMCI power plant is targeting to partially supply the power requirements of the province for a period of 20 years. (By JUANCHO R. MAHUSAY)