Power rates up in Benguet after ERB order to Beneco

>> Sunday, February 28, 2010

By Dexter A. See

LA TRINIDAD, Benguet — The Energy Regulatory Commission has authorized the Benguet Electric Coop. to impose rate adjustments in distribution, supply and metering (DSM) as well as reinvestment charges totaling at least P0.27 per kilowatt hour.

However, the rural electric cooperative was only allowed to charge 50 percent of the rate adjustment for the February billing.

The Beneco has over 130,000 consumers in Baguio City and Benguet.

At the same time, Beneco will pass on to its consumers an estimated P0.25/kwh in its generation cost as approved by the ERC because of increasing rates charged by power producers, an offshoot of the onslaught of the El Niño phenomenon which has affected operations of giant hydroelectric plants in Northern Luzon.

The ERC said the adjustments are very minimal considering cost of providing electric service to consumers increased significantly from the time the Beneco rates were determined by the regulating body based on a 2000 experimental period of implementation.

Beneco officials said the rate adjustments which will extend up to 2014 do not mean profit for the cooperative because out of the rate adjustment, P0.2167 will go to reinvestment.

The rural electric cooperative argued the new rate adjustments will redound to the benefit of consumers since it will continue to ensure effective operation and maintenance services.

Gerardo Verzosa, Beneco general manager, said the rate adjustments will not have significant financial impact on consumers classified under the lifeline category or those who consume below 45 kph per month.

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