BAGUIO CITY– Power rates in the franchise area of the Benguet Electric Cooperative (BENECO) significantly dropped by an average of P0.51 per kilowatt-hour in August primarily because of the decline in the monthly generation charge and other components of the rate.
From the 7.99 per kilowatt-hour residential rate for consumers having a monthly consumption of 101 kilowatt-hours and above in July, the same dropped to P7.48 per kilowatt-hour in the August billing cycle while low voltage commercial rates also dropped to P6.65 per kilowatt-hour in August compared to the P7.18 per kilowatt-hour last month.
In July, BENECO’s generation charge was P4.17 per kilowatt-hour that significantly dropped to P3.69 per kilowatt-hour in the August billing cycle of consumers.
The other generation adjustment (OGA), one of the components of BENECO’s computed generation charge which represents the under collected power generation charge from 2004 to 2010 pursuant to an earlier ruling of the Energy Regulatory Commission (ERC), amounting to P0.12 per kilowatt-hour has already been fully recovered as of July, thus, the same was no longer included as part of the generation charge in August and the coming billing period.
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In the same manner, the fuel cost of $62 per metric ton and the Wholesale Electricity Spot Market (WESM) price for the 1.88-megawatt BENECO bought from WESM is P2.110 per kilowatt-hour which are much lower compared to previous months.
BENECO’s systems loss charge in August dropped to P0.4035 per kilowatt-hour from the July figure of P4.364 per kilowatt-hour.
However, the transmission charge of the electric cooperative that is being billed by the National Grid Corporation of the Philippines (NGCP) in August increased to P0.73 per kilowatt-hour compared to the P0.72 per kilowatt-hour transmission charge collected from the consumers in July .
BENECO’s power rates are still one of the lowest rates of electric cooperatives and even private distribution utilities in the country despite having to sustain the provision of cheap, affordable and reliable energy to its increasing number of consumers.
Even if the Manila Electric and Railway Company (MERALCO) reported a significant reduction on its power rates for this month, BENECO’s residential and commercial rates are still far much lower compared to the power charges of the largest power distributor in the country having a much bigger market.
BENECO is one of the few electric cooperatives operating in the country included in the elite list of Class AAA cooperatives because of its significant accomplishments in the implementation of the government’s Sitio Electrification Program, the maintenance of the single digit systems loss, the 100 percent collection efficiency among other state-of-the-art systems that continues to be introduced for an effective and efficient power distribution system.
BENECO was granted the franchise to distribute quality and reliable power in Baguio City and Benguet pursuant to the government’s mandate to bring power to the countryside.
By Hent
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