BAGUIO CITY – The Benguet Electric Cooperative (Beneco) is urging consumers to practice energy conservation amid an expected increase in electricity rates due to the ongoing Middle East conflict.
In an advisory Thursday, Beneco said simple actions such as turning off unused appliances, using energy-efficient devices and limiting air conditioner use can help lower consumption.
Olive Bete, Beneco Corporate Planning Department manager, said the current situation is expected to significantly affect the generation charge which is a major component of power rates.
The March bill of the residential consumers will have a PHP0.0387 per kilowatt-hour (kWh) increase, bringing the rate to PHP8.1702 per kWh from PHP8.1315 per kWh in February.
The increase will affect most Beneco end-users, including commercial (low voltage), industrial and public buildings.
However, commercial high-voltage consumers will see a decrease of PHP0.1025 compared to February.
“We have to brace ourselves. This is now the reality,” Bete said.
She said higher fuel costs directly affect power generation companies. These costs are passed on the distribution utilities like Beneco, which will also pass on the same to consumers.
She added that while the March increase may remain minimal and manageable due to lower February power costs, consumers would have to brace for even higher power rates in April, when higher generation costs are reflected in the monthly bills.
The amount will only be determined as soon as Beneco receives the billing from its power provider – Therma Luzon Inc. and Masinloc Power Co. Ltd. as well as from the Wholesale Electricity Spot Market (WESM).
The official also clarified that it has no control over the generation charge, as Beneco only collects payments on behalf of power suppliers.
Beneco consumers in Baguio and Benguet require an average of 100 megawatts of power per month, thus the several sources of power for the local distribution utility.
Aside from the rising cost of power due to the Middle East conflict, she said the situation may worsen during the summer months when electricity demand rises due to increased use of cooling appliances, while supply from hydropower plants declines which can push generation costs even higher. **Liza Agoot
