BENECO cautions city on massive cost of underground cables

Overhead insulated wires proposed as alternative

The Benguet Electric Cooperative, Inc. (BENECO) said to the Baguio City Council during its regular session on Monday, July 13, that burying the city’s overhead lines presents massive financial and logistical hurdles. Instead, the cooperative proposed upgrading to high-voltage insulated wires as a cheaper, equally effective alternative.
The discussion came during the Baguio City Council’s regular session on July 13 where councilors inquired about BENECO’s current stance on implementing an underground utility network.
BENECO General Manager Melchor Licoben stated that while the cooperative has maintained a comprehensive technical blueprint to place the city’s chaotic wires underground for the last 15 years, funding remains the primary roadblock. Because BENECO is a non-profit cooperative, Licoben explained it cannot shoulder the project’s massive capital expenditures (CapEx) alone without heavily impacting consumer power rates.
According to BENECO’s estimates, burying just 11 kilometers of power lines would add 50 centavos per kilowatt-hour to local consumers’ electricity bills.
Licoben also cited severe geographical and administrative challenges, including negotiating right-of-way access, navigating the mountainous terrain of Baguio and Benguet, and coordinating excavations with the Department of Public Works and Highways (DPWH).
To address the city’s safety and aesthetic goals without placing a heavy financial burden on consumers, Licoben announced that BENECO is transitioning into high-voltage insulated overhead wires. He emphasized that insulated lines provide the same protective and reliability functions as an underground system, but at a lesser cost.
On June 15, 2026, the Baguio City Council approved on first reading a proposed ordinance authored by Councilor Edison Bilog. The pending measure mandates the progressive relocation of all overhead utility and communication lines underground within five years from the establishment of a Common Underground Utility Corridor (CUUC).
The proposed ordinance, which has been referred to the Committee on Public Utilities, Transportation, and Traffic Legislation for review, applies to all public and private utility providers, including telecommunications firms, internet service providers, and electric distribution utilities.
It also features a “Dig-Once Policy” to prevent repeated road diggings and creates a dedicated Baguio Underground Utilities Management Council to enforce compliance. Non-compliant entities face administrative penalties, including daily fines and the potential withholding of permit renewals.
The proposed measure provides that the city government shall establish and maintain the Common Underground Corridor System, with the responsibility for implementing underground cabling-related projects not being placed on BENECO.
Following the July 13 session, the City Council is actively incorporating BENECO’s insulated wire counter-proposal into its legislative review, directing its relevant committees to evaluate this alternative alongside the pending ordinance to ensure a balanced solution that modernizes the city’s infrastructure without placing an undue financial burden on Baguio consumers. **Gerald Matulay (UC BA Comm Student/SP Intern