The Benguet Electric Cooperative, Inc. (BENECO) is projecting another increase in consumers’ electricity bills this July of about P0.60 per kilowatt-hour, attributing the adjustment to higher electricity prices in the Wholesale Electricity Spot Market (WESM) amid the ongoing conflict in the Middle East. BENECO said electricity rates are expected to return to normal by September.
This was announced by BENECO General Manager Melchor Licoben during the Baguio City Council’s legislative inquiry on July 13, 2026 regarding last month’s increase in electricity bills.
The City Council’s legislative inquiry was prompted by the noticeable increase in electricity rates charged to BENECO consumers which rose by P1.9409/kWh, or about 20%, from P9.7041/kWh in May to P11.6500/kWh in June.
The electric bill comprises four components: generation cost, transmission cost, distribution cost, and other support charges.
According to Licoben, the increase in June electricity bills was primarily due to higher generation costs. He said BENECO sources about 50% of its electricity from Thermal Luzon, Inc. (TLI), whose generation rate increased by 10%, while another 33% is purchased through the WESM where electricity prices rose by 57%.
He further explained that the increase in generation costs in almost all distribution utilities was triggered by the ongoing conflict in the Middle East. He said the resulting increase in electricity rates was temporarily cushioned by the Energy Regulatory Commission’s P6.00 cap on coal prices. However, the cap remained in effect for only one month, after which electricity prices in the WESM reverted to market-based pricing.
However, Licoben announced that the new contract between BENECO and Mansiloc Power Co. Ltd. (MPCL) would be formalized on July 26, 2026, ending the cooperative’s exposure to the WESM. He said the agreement would benefit both BENECO and its consumers as the impact of higher WESM prices would be minimized through the lock-in rates agreed upon by both parties.
The general manager likewise clarified that BENECO’s billing cycle has a one-month lag, meaning the increase in electricity bills in June reflected the higher electricity rates in May.
Amid volatile electricity prices in the WESM which continue to affect consumers’ electricity bills, BENECO has several projects in the pipeline following the successful construction and operation of the 3.24-megawatt Man-asok Hydroelectric Power Plant in Buguias.
“Although the Man-asok Power Plant currently meets only 3 percent of our electricity demand, it proves that BENECO can generate its own power supply,” he said.
BENECO is pursuing the following initiatives:
A 10-megawatt minihydro power plant in Adaway, Kabayan with a Notice to Proceed issued by A 10-megawatt mini-hydroelectric power plant in Adaway, Kabayan, for which the Department of Energy has issued a Notice to Proceed;
A nine-megawatt solar energy project in Tabaan Sur;
The exploration of other potential sites in Bakun, Kapangan, and Tuba; and
Partnerships with developers in Benguet to provide additional power generation capacity beyond BENECO’s existing contracted supply.
Licoben said these projects are expected to help stabilize electricity rates for consumers in Baguio and Benguet. **Jordan G. Habbiling
