Global turmoil may up Beneco electricity rates
>> Saturday, March 26, 2022
BAGUIO CITY -- Power
rates here and in Benguet may increase due to global turmoil resulting to
higher fuel prices.
Benguet Electric Cooperative general manager Melchor Licoben bared this saying coal price in the world market is now $400 per metric ton and has breached the $300 threshold.
The Beneco is one of power cooperatives that charge the lowest rates in the country.
He said Beneco's power supplier, the Sual-based TEAM Energy Corp., informed them the company could no longer absorb increase in coal prices in the world market, and generation charge being billed to their clients might move up in the coming billing cycles.
Licoben said when there was movement in coal prices last year, generation charge billed by the power supplier to electric cooperatives and private power distribution utilities fluctuated that prompted Beneco management to enter into a temporary agreement to mitigate uncontrolled coal prices to power rates charged to member-consumers-owners.
Licoben said the conflict between Russia and Ukraine also played a major factor in dictating coal prices in the world market.
Immediate settlement of the dispute might help in stabilizing increasing coal and oil prices.
He said there is no clear estimate on increase in power rates charged to consumers in their monthly electricity bills.
Electric cooperatives and private power distribution utilities reportedly have no direct control on generation charge being billed by the power supplier as the same is dependent on the coal prices and the peso-dollar exchange rate.
Beneco is one which has the cheapest power rates nationwide as compared to private distribution utilities more than 15 times its size and areas of coverage.
Beneco is one of top-performing electric cooperatives in the country, which has achieved its Class AAA category and maintained the same over the years.
Benguet Electric Cooperative general manager Melchor Licoben bared this saying coal price in the world market is now $400 per metric ton and has breached the $300 threshold.
The Beneco is one of power cooperatives that charge the lowest rates in the country.
He said Beneco's power supplier, the Sual-based TEAM Energy Corp., informed them the company could no longer absorb increase in coal prices in the world market, and generation charge being billed to their clients might move up in the coming billing cycles.
Licoben said when there was movement in coal prices last year, generation charge billed by the power supplier to electric cooperatives and private power distribution utilities fluctuated that prompted Beneco management to enter into a temporary agreement to mitigate uncontrolled coal prices to power rates charged to member-consumers-owners.
Licoben said the conflict between Russia and Ukraine also played a major factor in dictating coal prices in the world market.
Immediate settlement of the dispute might help in stabilizing increasing coal and oil prices.
He said there is no clear estimate on increase in power rates charged to consumers in their monthly electricity bills.
Electric cooperatives and private power distribution utilities reportedly have no direct control on generation charge being billed by the power supplier as the same is dependent on the coal prices and the peso-dollar exchange rate.
Beneco is one which has the cheapest power rates nationwide as compared to private distribution utilities more than 15 times its size and areas of coverage.
Beneco is one of top-performing electric cooperatives in the country, which has achieved its Class AAA category and maintained the same over the years.
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