Power rate down in Baguio, Benguet by P0.51 per kwh

By Dexter A. See

LA TRINIDAD, Benguet — The management of the Benguet Electric Coop. here disclosed Monday that over 130,000 residential and commercial consumers will enjoy a 51-centavo per kilowatt reduction in their electricity bills beginning this month.

Gerardo P. Verzosa, Beneco general manager, said the power rate reduction was made possible because of the lowering in charges on the components for power production.

As approved by the Energy Regulatory Commission, the electricity rate adjustment was computed from the drop in generation charge by P0.4021; the P0.0917 per kilowatt-hour systems loss charge; and adjustments to the value added taxes amounting to P0.0224 per kilowatt-hour from systems loss, transmission and distribution charges.

Verzosa said the generation cost of power being purchased by distribution utilities had gone down, especially with the onset of the rainy season that allowed power plants to partially operate and address the artificial shortage of power in the Luzon grid as an offshoot of the El Niño phenomenon.

He said reduction in the generation charge is an indication operation of power generation companies is slowly going back to normal with the occurrence of daily afternoon rains.

But Verzosa added reduction in the generation and transmission costs will be a variable every month but the systems loss charge could still go lower once the cooperative will be successful in completing its rehabilitation of its lines and equipment, thus, consumers will still be able to enjoy reduced rates depending on the charges to be imposed by the power generators and the National Grid Corporation of the Philippines.

In January, the generation charge being passed on to consumers by the rural electric cooperative was as low as P3.4150 per kilowatt-hour which went to as high as P4.5957 per kilowatt-hour last month during the height of the prolonged drought that affected most parts of the country.

On the other hand, Verzosa explained the systems loss charge has also gone down because of the successful implementation of the efficiency programs and projects being continuously done to improve the delivery of quality power to the consumers even in non-viable areas located within its franchise area, particularly in Baguio City and Benguet.