BENECO POWER RATES FOR SEPTEMBER LOWEST SINCE 2022
By: Laarni S. Ilagan
Residential consumers of the Benguet Electric Cooperative (BENECO) will
see a major drop in their September electricity bills, with rates falling by
P1.6286/kWh — the lowest since 2022, according to BENECO’s finance
department.
A household using 100 kWh this month will save P162.86, while those
consuming 200 kWh will pay P325.72 less, compared to August.
The total residential rate for September is P8.2523 much lower
compared to August’s P9.8809/kWh.
BENECO General Manager Melchor S. Licoben attributed the decrease to
a combination of lower generation charges and the termination of certain
billing components. The generation charge dropped by P1.1214/kWh,
while the ICERA GRAM and ICERA GRAM VAT charges, amounting to
P0.3714/kWh, were discontinued in August.
The ICERA or Incremental Currency Exchange Rate Adjustment covers
changes in the foreign exchange rate while the GRAM or Generation Rate
Adjustment Mechanism is an adjustment for fuel costs that seeks to absorb
changes in fuel costs.
“The reduction is largely driven by lower power supply costs from the
Wholesale Electricity Spot Market (WESM) and Therma Luzon Inc. (TLI),”
Licoben said.
For September, BENECO’s blended generation rates were pegged at
P3.8531/kWh for WESM and P4.4762/kWh for TLI. These are significantly
lower than August’s rates, which stood at P4.7865/kWh for WESM and
P4.7232/kWh for TLI. Purchases from GNPower Dinginin Ltd. Co. (GNPD),
which previously made up a portion of the supply, were no longer reflected
in the September breakdown.
Licoben emphasized that generation charges account for about 60 to 65
percent of a consumer’s monthly electricity bill on the average. Thesecharges are collected by BENECO from its customers, but are passed on
directly to power suppliers.
“This is part of BENECO’s ongoing effort to bring down the cost of
electricity and ensure fair and reasonable rates for our consumers,”
Licoben said. “We continue to be vigilant in monitoring market trends and
work actively in the electricity spot market to secure the most competitive
rates.” 
