BENECO April Power Rates Far Below Initial Projected Increase
By: Laarni S. Ilagan
BAGUIO CITY– In the face of rising commodity and fuel costs driven by Middle East conflicts, the Benguet Electric Cooperative (BENECO) has delivered welcome relief to households, with April electricity rates coming in far below initial projections.
The cooperative announced an increase of just P1.4270 per kilowatt-hour (kWh), bringing the rate from 8.1702/kWh in March to P9.5972/kWh in April. For a typical household consuming 100 kWh, this translates to an additional P142 in the monthly bill—a modest uptick despite global volatility.
In contrast, the Manila Electric Company (Meralco) reported its overall rate rising to P14.3496/kWh, up from P13.8161/kWh last month.
BENECO officials attributed the cushioned impact to proactive sourcing, diversified supply, and a stabilized Wholesale Electricity Spot Market (WESM), where over 50% of the cooperative’s power is sourced.
However, for BENECO, the biggest contributing factor to the April rate increase remains the WESM cost, which surged by about P1.80/kWh.
During Monday’s flag ceremony, Non-Network Services Department Manager Ramel Rifani updated employees on the rate movement—from P8.17 to P9.40/kWh (later adjusted to the official P9.5972/kWh)—driven mainly by WESM price spikes. Projections for May remain uncertain. “With recent geopolitical developments, we expect challenges, but we are hoping to keep rates below P10/kWh,” Rifani noted.
“Geopolitical tensions sparked fears of steeper increases, but our strategies ensured that rates remained manageable,” said BENECO General Manager Engr. Melchor S. Licoben during the employees’ flag ceremony last Monday. He also encouraged employees to continue identifying ways to streamline processes, strengthen power conservation measures, and maximize the cooperative’s financial resources.
Licoben emphasized management’s mitigation efforts and called for employee cooperation in conservation initiatives. Key measures include:
• A digitalized vehicle monitoring system and energy audits that revealed high fuel consumption, particularly in crew dispatch and vehicle idling;
•Practical steps such as carpooling, avoiding unnecessary trips (“paikot-ikot”), minimizing vehicle idling to reduce pollution and costs, and implementing standby protocols instead of roaming without job orders (JOs);
• Facility audits which showed no alarming results but served as a “wake-up call” for more structured conservation efforts—highlighting fuel consumption as the biggest cost driver, potentially adding up to P1 million monthly in operational expenses (equivalent to funding for posts and transformers).
“Small things add up—discipline in fuel use has a significant impact,” Licoben said, recalling the Emergency Power Supply Agreement (EPSA) period when rates reached P11/kWh following the end of the 20-year TPEC contract. “We are doing our very best to keep rates below P11/kWh for our member-consumers,” he added.
BENECO is also ramping up its public information campaign, reminding members to unplug unused appliances, switch off idle computers, and practice energy conservation.
“We must walk the talk,” Licoben emphasized. The cooperative also continues to pursue renewable energy expansion to help shield consumers from future price shocks.
This relative stability provides much-needed relief to BENECO’s member-consumers in Baguio City and Benguet amid rising pressures from imported coal and oil. (LSI)
