BAGUIO CITY – More than 220,000 electric bills will reflect an PHP88 decrease in the July billing, the Benguet Electric Cooperative (BENECO) said in an advisory on Friday.
Laarni Ilagan of the BENECO Corporate Communications Office traced this development to the cooperative’s prompt payment discount from its power supplier, the Limay Power Inc. (LPI); lower generation cost; and the Energy Regulatory Commission’s (ERC) order that Wholesale Electricity Spot Market (WESM) component of the generation charge be collected in four installments.
BENECO is the sole electric distribution utility for Baguio and Benguet.
For the July billing cycle, member consumer owners (MCOs) who will consume 100 kilowatt hours (kWh) will pay PHP88 less in generation charge.
The total deduction is computed based on the PHP1.0618 per kWh reduction in the total rate to PHP10.3333 per kWh, from PHP11.3951 per kwh for residential consumers last June.
“Under its power supply contract with LPI, BENECO will enjoy a prompt payment discount (PPD) if it pays its previous bill 15 days ahead of time,” Fraiser Angayen, Non-Network Services Department (NNSD) manager, said.
LPI bills BENECO an average of PHP300 million monthly. The amount represents the generation charge component of the power bill that consumers pay every month and which BENECO remits to its power supplier.
The generation system in the unbundled bill is about 60 percent to 65 percent.
Angayen said ERC’s order for the staggered collection of the generation charge covers WESM purchases from April 26 to May 25, 2024.
Thus, BENECO will bill such cost to its consumers until October.
Due to the volatility of price of coal in the world market, foreign exchange rate, and the volatility of prices at the WESM, Angayen cautioned MCOs to expect unstable generation rates that may either spike or drop.
The reduced rates will be experienced by all BENECO consumers, he said.
Comments