BAGUIO CITY — Electricity consumers in Baguio and Benguet, the Benguet Electric Cooperative (BENECO) said, will see a significant drop in their electricity bills this August as residential rates fall to P9.8809 per kilowatt-hour (kWh) from P10.4763/kWh in July.

For households consuming 100 kWh per month, this reduction translates to P53.79 in savings, while those consuming 200 kWh will save P107.58 on their August 2025 electric bill, BENECO detailed.

The overall decrease of P0.5953/kWh in the total electricity rate is mainly driven by lower generation costs, the electric cooperative said.

Generation costs from BENECO’s power suppliers fell to P5.4434/kWh in August from P5.9466/kWh in July. Rates from the Wholesale Electricity Spot Market (WESM) also dropped to P4.7865/kWh from P5.4702/kWh.

In contrast, the transmission cost paid to the National Grid Corporation of the Philippines (NGCP) increased by P0.0801/kWh stemming from higher regulated services charges and the Energy Regulatory Commission’s (ERC) approval of NGCP’s Maximum Annual Revenue Requirement for the fourth regulatory period (2016-2022).

Under this approval, NGCP is authorized to collect P28.297 billion over a period of 84 months, or until the amount is fully recovered. As a result, consumers can expect higher transmission rates for the next seven years, BENECO said.

BENECO General Manager Melchor S. Licoben said that the ERC has granted a Provisional Authority for the implementation of the long-term Power Supply Agreement (PSA) between BENECO and Therma Luzon, Inc. (TLI), which contributed to the reduction in generation cost.

The Emergency Power Supply Agreement (EPSA) by BENECO with GNPower Dinginin ended on July 25.

BENECO is also awaiting action from the ERC on another long-term PSA with Masinloc Power Co. Ltd. (MPCL), which could further help stabilize and potentially lower rates in the future.

“BENECO remains committed to finding ways to bring down electricity rates, as we have consistently done for many years. We continue to optimize our power supply to ensure that our consumers enjoy the most competitive rates possible,” Mr. Licoben promised.

BENECO is among the 90 electric cooperatives in the country reported by the Philippine Rural Electric Cooperatives Association, Inc. to have lower rates compared to MERALCO. — Artemio A. Dumlao

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