Separate power coop bid has 'serious repercussions'

Thursday, May 19, 2011

THE province of Benguet is likely to suffer if Baguio City would push for a separate electric cooperative as proposed by a councilor, said an official of the Benguet Electric Cooperative (Beneco).

"The proposal has to be seriously studied. Benguet would be on the losing end if that happens," Delmar Cariño, Beneco legal counsel and human resource manager, told reporters.

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Baguio City Councilor Richard Cariño earlier filed a resolution calling for the creation of a separate power franchise for the city.

The councilor said power rates will be reduced if distribution is concentrated in Baguio, since Beneco could already concentrate on electrifying far-flung municipalities and sitios in the province.

But the Beneco official countered, saying the franchise given to Beneco includes Baguio City.

Cariño said only in cases where inept service is reported that another electric cooperative could be formed.

He also said that it is inherent the cooperative would have to spend for far-flung areas.

"It is inherent that Beneco would have to spend for rehabilitation and expansion," Cariño explained, adding systems losses Beneco charges to consumers is below the 14 percent allowable cap as contained in the Electric Power Industry Reform Act (Epira).

He also said that it would take an act of Congress to cause the creation of a separate cooperative. "In effect, the proposal cancels Beneco's franchise."

The system proposed by Councilor Cariño is reportedly practiced in San Juan town and San Fernando City, La Union.

The councilor said both towns are "basically separated" from the La Union Electric Cooperative (LuElCo) and is now being serviced by the La Union Electric Company (LuECo).

He said LuECo operates more efficiently and charges a lower power rate compared to LuElCo.