Ormeco ends contract with IPP

Ormeco ends contract with IPP

Read this in The Manila Times digital edition.

CALAPAN CITY, Oriental Mindoro: Amid the pesky rotational brownouts in the province, the Oriental Mindoro Electric Cooperative (Ormeco) has terminated its contract with one of its independent power producers (IPP).

In the radio program “Hagupit ng Dos por Dos sa Radyo” aired over DWXR 101.7 FM on Wednesday, Board Member Voltaire Brucal told the program hosts, including this correspondent, that the management of Ormeco has ended its contract with Power One Corp. (POC) for its failure to deliver their part of the deal.

In a text message to The Manila Times, Ormeco acting general manager Humphrey Dolor confirmed the termination of POC’s contract. He said that they have issued warnings thrice, but the IPP failed to deliver the contracted 15 megawatt (MW) of power.

Meanwhile, two IPPs operating in Oriental Mindoro — David M. Consunji Inc. (DMCI) and Tapteam — had submitted proposals for an emergency power procurement and Dolor said he will submit them to the National Electrification Administration for approval.

DMCI is proposing to deliver 4MW while Tapteam proposed to deliver 8MW, Dolor said.

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“This is a bitter pill to swallow, but we have to do this so that we can provide better service to our member-consumers,” Dolor said in his message, adding that he did not allot the capacity to be contracted to the two IPPs, belying speculations that Ormeco is favoring certain IPPs that provide power to be distributed by the cooperative.

Dolor reported that the power distributor has a power demand of 57.71MW, but the IPPs can only provide 45.9MW with a deficit of 11.81MW. He said that the deficit is enough to power four small towns in the province.

While the radio program was airing, several complaints of power outages were received by the hosts.

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