BAGUIO CITY – The House of Representatives recently approved on third and final reading House Bill (HB) 10483 granting the renewal of the 50-year franchise of the Benguet Electric Cooperative (BENECO) to contract, install, establish, operate, own, manage and maintain a power distribution system for the conveyance of electricity to the end users of the city and all the 13 towns of Benguet.
Earlier, Rep. Mark Go and Benguet Rep. Eric Yap filed separate bills for the franchise renewal of BENECO which were eventually consolidated by the House committee on energy and submitted for plenary debates where 202 lawmakers voted in favor of its approval with no abstention and opposition.
The said bill will be transmitted to the Senate for the passage of its counterpart measure prior to being submitted for the deliberations of the bicameral conference committee and eventual submission to the Office of the President for signing into law.
BENECO general manager Melchor Licoben welcomed the franchise approval in the Congress and thanked the lawmakers for their swift passage of the bill before the election.
Further, BENECO’s franchise renewal is also a testament to the government’s commitment to ensuring that Benguet and Baguio residents have access to reliable and affordable electricity.
Yap said that with the passage of the bill for the renewal of BENECO’s franchise, he is looking forward to the enhanced implementation of the government’s rural electrification program in Benguet to bring cheap and quality power to the residents in remote communities to spur the conduct of economic activities in the said areas.
“We’re elated with the approval of this bill in Congress, not only for BENECO but more so for our consumers. I’m happy kasi it passed na before we get busier sa Congress dahil sa ongoing budget hearings,” said the solon.
He claimed that BENECO’s franchise renewal will pave the way for enhanced service reliability as the power distributor can now focus on upgrading its infrastructure while spurring economic growth in the area.
“We will not wait until next term pa para ipasa itong BENECO Franchise Bill kahit sa 2028 pa matatapos talaga yung franchise. We don’t know what will be the priority next Congress kaya as much as possible, habang kaya ngayon, ilaban na para siguradong walang interruption. Interruption of BENECO services will be very costly sa lahat,” added Yap
BENECO’s 50-year franchise as a power distribution utility will expire in 2028 but the management deemed it necessary to work out the possible renewal of the same at the earliest possible time so that it will not be overtaken by events in the future.
“We will now switch gears and go to the Senate, lobby for its passage. Confident tayo because we have friends there, hopefully it will be passed this year and signed into law by the President. Mabuhay ang Benguet at Baguio!” added Yap.
For his part, Go acknowledged BENECO’s steadfast commitment to serving the residents of Baguio and Benguet for 50 years and sought to ensure uninterrupted service to its communities.
The Baguio City congressman cited BENECO’s performance as the top-performing electric cooperative in the Cordillera Administrative Region, earning a remarkable 99 percent performance rating.
In 2019, BENECO secured its International Standardization Organization (ISO) certification 9001:2015 in 2019, achieving the highest quality standards in management and quality service.
“The passage of this franchise ensuring BENECO’s continued service is long overdue, and I am grateful and pleased that my colleagues at the House of Representatives understand the cooperative’s impact in powering our rural communities and ensuring widespread electric coverage in our towns across Benguet and Baguio City,” Rep. Go said.
“BENECO has consistently provided the most affordable on-grid rate, and has consistently displayed exemplary performance in widening the reach of our rural electrification efforts and creating sustainable countrywide development,” Congressman Go emphasized.
BENECO was able to regain its Class AA status after it was downgraded to a Class C electric cooperative primarily caused by the one-year leadership impasse that beset its operations following the controversial appointments done by the National electrification Administration – Board of Administrators (NEA-BOA) on the position of general manager two years ago.
However, the Court of Appeals nullified the appointment made by the NEA-BOA for being an exercise of grave abuse of authority and discretion on their part although the issue was settled with the appointment of Engr. Melchor S. Licoben as the general manager which passed through the prescribed process as enshrined under the NEA rules and regulations. By Dexter A. See
