Benguet Electric Cooperative (Beneco) has announced a reduction in electricity rates for its over 220,000 consumers in Baguio City this January. The cooperative has managed to lower its rates by approximately 25 centavos per kilowatt-hour, thanks to sourcing a portion of its power from the Wholesale Electricity Spot Market (WESM). Laarni Ilagan, from Beneco’s Community Relations Office, stated that the new rate stands at PHP10.7718 per kWh, down from last month’s PHP10.9743 per kWh. This adjustment means a household consuming 100 kWh will now pay PHP1,077.18 for the month. Fraiser Angayen, manager of the non-network services department, attributed the lower rates to decreased costs from WESM, which accounts for 12.09% of Beneco’s total power needs. The majority, 87.37%, is supplied by Limay Power Inc. (LPI) under a one-year Emergency Power Supply Agreement with San Miguel. The combined cost from WESM and LPI forms Beneco’s blended generation rate, which is reflected in consumer bills. Beneco’s general manager, Melchor Licoben, noted that if all power were sourced from WESM, rates could drop below PHP4 per kWh due to low spot market prices during the period. However, he cautioned that WESM’s volatility makes it an unreliable source for stable power supply, as prices can fluctuate and affect the grid’s balance.
