BENECO RECORDS A SYSTEM LOSS DROP, HIGHER COLLECTION EFFICIENCY THIS MARCH

By: Laarni S. Ilagan

BAGUIO CITY — The Benguet Electric Cooperative (BENECO) reported strong operational performance for March and April, highlighted by a significant drop in system loss and high collection efficiency, even as the utility navigates a fuel crisis.

During the General Manager’s Hour last April 24, GM Melchor Licoben confirmed before the employees that the system loss (SL) fell to 5.31%, a notable improvement compared to the same period last year. This technical milestone was bolstered by a collection efficiency of 100.51%, with over 221,177 bills processed.

Management attributed the positive trend to a decline in non-technical losses and improved billing cycles, resulting in an average SL of 7.53% over the past three months.

The allowable system loss cap set by the Energy Regulatory Commission (ERC) is 10.25%. A lower system loss percentage translates to lower costs for consumers.

Conservation Amid Rising Costs

The Internal Audit Department reported a 19% reduction in fuel consumption for March and April following a Risk-Based Audit (RBA) and aggressive conservation efforts. However, officials noted that the “galloping cost of fuel” in the global market has offset the monetary savings.

“Let’s continue to save (magtipid), but let’s not sacrifice our work,” management urged, noting that while fuel prices have recently dipped slightly, the duration of the energy crisis remains uncertain.

Power Rates and Supply Challenges

While external factors such as Wholesale Electricity Spot Market (WESM) prices are being closely monitored, the utility successfully mitigated an additional ₱3 million in costs through strategic management.

On the infrastructure front, the Power Generation Department (PGD) reported that frequent forest fires near the Man-asok mini-hydro power plant have not caused any damage to power lines. However, low water levels at the Man-asok hydro plant have reached critical levels, forcing temporary shutdowns.

Modernization and Future Threats

To adapt to the changing landscape, BENECO is pursuing several long-term strategies:

• Renewable Energy: Aggressively pursuing the 20 MW Kabayan hydro project to help meet the government’s 35% renewable energy target by 2035.

• Electric Vehicles: The utility recently commissioned a new hybrid vehicle—chosen for the local terrain—as part of its transition away from traditional fuel.

• Customer Service: Aiming to reduce installation-time to one day by 2030.

The session ended with a sobering reminder of the industry’s volatility. Management pointed to other electric cooperatives, such as NORDECO and SOCOTECO II, which are currently facing private utility takeovers.

“The threat of a possible takeover is always there,” officials warned, citing how social media and minor service interruptions can be used to justify private intervention. They called on employees to maintain the resilience that helped BENECO withstand a similar takeover attempt in the late 1980s. And be steadfast in providing quality service to the member-consumer-owners. #