BENGUET Electric Cooperative (Beneco) is looking at lower rates this June after a material increase in its rates during previous two consecutive months brought about by spikes in generation charges.
This was due to its exposures in the Wholesale Electricity Spot Market (WESM) at times when power costs were high.
Beneco analyst Rowina Damian said with a flexible power supply contract, Beneco consumers will either endure temporary increase in rates or enjoy much lower rates, depending on the period and circumstances of its exposure to the WESM.
Beneco had no exposure in the spot market for the month of May which is the basis of the pass through charges for June 2019.
“The generation cost refers to the cost of power generated and sold to Beneco by its power suppliers, per billing cycle, and is passed through to its consumers on a peso per kwh basis,” Damian said.
Lower generation charge will entail lower system loss and lifeline subsidy charges. System loss charge represents the recovery of the cost of power lost due to technical losses and non-technical losses whose cap is currently pegged at 13% percent for electric cooperatives like Beneco.
“The cooperatives current system loss is way lower than the cap at an average of 7.43 percent as of April 2019, while the management and workforce is still working on lowering it further. Generation charge of BENECO which comprise at least 50% of the total electricity charge decreased by P 0.9791/kwh,” Damian added.
Transmission charge also went down by two centavos, with an overall reduction in electricity charges is P 1.1203/kwh, which brings down bill amount by P 112 for a household consuming 100 kwh per month.