Electricity rates hike seen in Baguio, Benguet

BAGUIO CITY — Electricity consumers here and in the rest of Benguet province are bracing for higher monthly power bills this March as the National Grid Corporation of the Philippines (NGCP) implements transmission charge increases, according to the Benguet Electric Cooperative (Beneco).
Beneco said on Wednesday that the NGCP’s adjustments, particularly in ancillary service charges, are expected to impact consumers, prompting the cooperative to raise concerns in a letter dated March 7 to Ma. Cynthia Manrique, head of Revenue and Regulatory Affairs at NGCP.
The letter asked that the NGCP clarified its decision for the sudden surge in ancillary service charges from January to February 2024.
Beneco General Manager Melchor Licoben cited that the increase in contingency reserve charges reached 509%, translating to a cost of P21.3 million for Beneco and marking a 218% surge from the previous billing cycle.
The NGCP, which is responsible for the country’s transmission system, levies transmission charges, which include ancillary services, on distribution utilities like Beneco.
In view of the surge in charges, Beneco advised residential consumers to anticipate a transmission charge increase of P0.3667 per kilowatt-hour (kWh).
It said low-voltage commercial and industrial consumers, public buildings, and streetlights are also expected to see a rise of P0.4705 per kWh in their bills.
Olive Bete, Executive Services and Regulatory Compliance Officer (ESRCO) from the office of the General Manager, said residential consumers are set for a hike from P9.9796 per kWh in February to P10.4435 per kWh in March — an increase of P0.4369 per kWh.
For an average family consuming 100 kWh per month, this means an additional cost of P46.39 for March, inclusive of value-added tax, she said.
Ms. Bete also expressed concern over the supposed lack of transparency in NGCP’s billing, urging the corporation to inform consumers about the reasons behind the substantial increase.
Mr. Licoben also urged NGCP to promptly notify consumers of the adjustments, as meter readings began on Wednesday, and the upcoming bills will reflect the increased ancillary charges. — Artemio A. Dumlao