Sunday, December 5, 2021

Baguio-Benguet power rates drop in November

BAGUIO CITY -- Power rates charged by the Benguet Electric Cooperative from its member-consumer-owners over the past two months reduced by P0.0415 per kilowatt-hour (kWh) this November because of lower transmission charges.
    Beneco data bared residential consumers are charged P9.2261/kWh this November compared to the P9.2677/kWh billed last October.
    Beneco general manager Melchor Licoben said the lower power rates this November was because of drop in transmission charge from P0.7051/kWh in October to P0.6927/kWh in November.
    The lower power rates were complemented by drop in systems loss charge from P0.5277/kWh to 0.5078/kWh in November, brought about by cost efficiencies implemented by the management amid the Beneco leadership crisis for more than six months.
    He said generation charge of P4.9500/kWh has been consistent for October and November despite fluctuating prices of coal in the world market that triggered increases in power rates the previous months.
    In October, Beneco power rates dropped by 0.30/kWh because of the lower generation charge of power suppliers.
    Beneco officials expressed hope on downtrend of electricity power rates in the coming months.
    Under provisions of the Electric Power Industry Reform Act, pass-through charges such as the generation and transmission charges, value-added tax, among others, which are collected by the generation and transmission companies as well as regulatory agencies are beyond the control of the electric cooperative, while the pass on charges such as the distribution, supply and metering remains constant.
    Since 2012, Beneco has not increased its existing distribution, supply and metering charge and despite the same, it was able to maintain its Class AAA status and one of the top-performing rural electric cooperatives in the country. Beneco has an existing 50-year franchise to be a power distribution utility in the Baguio and Benguet area that is expected to expire in 2028 pursuant to the provisions of existing laws, rules and regulations governing its operations.
    At present, the current management and majority members of the Board of Directors are standing firm on their decision not to recognize controversial resolutions of the National Electrification Administration – Board of Administrators insisting on appointment of an "unqualified and not recommended applicant to the position of general manager" because there was an appointed general manager on April 21, 2020, based on Resolution No. 2020-90 of the Beneco board.

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