Beneco hydropower plant to reduce power rates
>> Wednesday, July 31, 2019
By
Michael Jerome de Guzman
BUGUIAS, Benguet --
The Benguet Electric Cooperative (Beneco) is investing in its own hydropower
plant and buy its output to cut the cost of electricity that it sells to
consumers, an official said on Thursday.
Engineer
Ricardo Pallogan, manager for Beneco’s power generation division, said they
expect to start the operation soon of the three-megawatt power plant located here
in Barangay Sebang.
On the first
year of the operation, the hydropower plant will sell the power at P5.44 per
kilowatt hour, almost the same as the cost of power Beneco buys from the
generation company that provides their electricity needs.
Proceeds from
operation will also cover the loan for the construction and putting up of the
hydropower plant.
After the
12th year, it will be able to sell to its consumers at PHP1.54 per kilowatt
hour, not retaining anything as Beneco is a non-stock, non-profit electric
cooperative owned by the electric consumers within the franchise area of Baguio
City and Benguet.
“Beneco or
any electric cooperative, should construct, commission and operate their own
generation facilities para 'yun ang pagbaba ngrates (to lower the rates),”
Pallogan said.
“Beneco will
be able to do this as it is not allowed by law to retain profits, it being a
non-stock, non-profit," he added.
Beneco passes
on to consumers what is charged by the generation and the transmission sector.
Pallogan said
Beneco had borrowed around PHP58 million to start building the three-megawatt
hydro power plant. It will pay the loan in a span of 12 years. Once paid up, it
will give its promised rate of PHP1.54 per kilowatt hour to consumers.
"Go for
power generation, for run-off-river technology because it is allowed by law for
you to engage in that to lower the cost of power that you sell to your
consumers," said Professor Rowaldo del Mundo, an Associate Professor and
Program Director of the National Engineering Sector of UP Diliman, specializing
in Power System, Electricity markets and regulation.
In one of the
seminars he conducted for government information officers in the Cordillera,
del Mundo said that Beneco sold power to the consumers at an average of PHP8.40
per kilowatt hour, around PHP1 cheaper compared to Meralco’s PHP10.20 per
kilowatt hour.
The low rate
is also a positive effect of the one-digit systems loss of Beneco at 7 to 8
percent, much lower than the ceiling allowed by the distribution sector.
The cheap
cost of power provided by Beneco will further be reduced with the schemes being
undertaken.
Randy
Caralino, head of the billing and collection division of Beneco, said that
Baguio City already has the cheapest rates in the whole country.
Aside from
the Buguias power plant, Beneco had also entered into an agreement with the
indigenous peoples organization in Kabayan, Benguet for a new and bigger power
plant, which in the future will add on to the three-megawatt production in
Buguias, and further cut the power rates for Baguio and Benguet
consumers. -- PNA
0 comments:
Post a Comment