BAGUIO CITY –The Benguet Electric Cooperative (BENECO) signed a five-month Emergency Power Supply Agreement (EPSA) with GNPower Dinginin Ltd. Co. (GNPD) recently to address the anticipated surge in electricity demand during the summer months.
The signing ceremony took place at Dumol Hall, GPV Building, South Drive, Baguio City.
The agreement aims to ensure a stable power supply for BENECO’s member-consumers while mitigating potential shortages and fluctuations in the Wholesale Electricity Spot Market (WESM) during the peak consumption period. Leading the signing were BENECO General Manager Melchor Licoben and GNPower Senior Assistant Vice President Jeremiah Padilla, who were joined by BENECO Chairperson Atty. George M. Dumawing Jr., GNPD Sales Manager Ronald Gutierrez, and GNPD Marketing Officer Florence G. Aguilar on Feb. 25, 2025.
The EPSA follows the expiration of BENECO’s previous agreement with Limay Power Inc. at midnight on February 25. In preparation, the cooperative solicited offers from 13 power generation companies, receiving responses from four suppliers. Following a competitive evaluation, GNPD secured the contract by offering the lowest electricity price. Under the agreement, GNPD will supply 73 megawatts per day from its coal-fired power plant, with the contract taking effect at 12:01 a.m. on February 26, 2025, and running until July 25, 2025.
“The price of electricity from GNPD will range from ₱5.50 per kilowatt-hour or more, depending on actual market conditions during the contract period,” Licoben explained. “This will be part of BENECO’s blended power supply mix, as we also source a percentage of our supply from the WESM.”
Licoben also provided updates on BENECO’s long-term Power Supply Agreement (PSA) with Masinloc Power Co. Ltd. (MPCL) and Therma Luzon, Inc. (TLI). He stated that the cooperative is preparing to submit the PSA to the Energy Regulatory Commission (ERC) before the end of the month or early March. The agreement, which was signed on February 3, 2025, along with other electric cooperatives, must be filed before the March 5 deadline. Licoben noted that the ERC typically takes two to three months to issue a provisional authority or final approval for power supply contracts.
GNPD Sales Manager Ronald Gutierrez assured BENECO that their supply capacity is sufficient to meet demand.
“The 73 MW is already reserved for BENECO. In fact, we are very grateful to BENECO for their trust. As a power provider, GNPower is the largest coal-fired power producer in the country, and we have multiple customers, including MERALCO. We always participate in the Competitive Selection Process (CSP) and ensure that we offer the lowest possible price while meeting the ERC’s regulatory standards,” Gutierrez stated.
Licoben, meanwhile, reassured BENECO’s member-consumer-owners that the cooperative remains committed to ensuring an uninterrupted power supply.
“We are entering into these agreements with power producers to guarantee that electricity is available 24/7 for our consumers at any given time of the day,” he emphasized.
This EPSA complies with the 2023 guidelines issued by the Department of Energy, Energy Regulatory Commission, and the National Electrification Administration for the Competitive Selection Process of an EPSA following force majeure or unforeseen events. The agreement has a maximum and non-extendible period of one year from its execution.
With this new EPSA in place, BENECO remains committed to providing reliable and affordable electricity to its consumers, especially during the high-demand summer season. By Annjay Lhore Domilies
