Baguio-Benguet power distributor seek low electricity cost
-Art Dumlao- — October 16, 2024
Baguio-Benguet power distributor seek low electricity cost
BAGUIO CITY (October 16, 2024)— Private power distrbutor Benguet Electric Cooperative (BENECO), servicing Baguio and Benguet, joined the Luzon Electric Cooperatives Aggregation (LECA) hoping for cheaper generation rates to pass on to its member-consumers for the next 15 years.
BENECO’s Emergency Power Supply Agreement (EPSA) with its current supplier, Limay Power Incorporated (LPI), a subsidiary of San Miguel Corporation, will end by the first week of March, 2025. The EPSA was procured following the expiration of BENECO’s 20 year power supply agreement with TEAM Energy (formerly Mirant) last March 13, 2024.
BENECO, it said, is determined to secure a longer power supply agreement through the aggregation before the EPSA will expire.
The aggregation has joined the demand of 18 electric cooperatives to be able to secure reasonable generation rates. The ECs are Albay Electric Cooperative, Inc. (ALECO), BENECO, Camarines Electric Cooperative, Inc. (CASURECO) I, Camarines Electric Cooperative, Inc. (CASURECO) II, Central Pangasinan Electric Cooperative, Inc. (CENPELCO), Ilocos norte Electric Cooperative, inc. (INEC), Ilocos Sur Electric cooperative , Inc. (ISECO), Isabela electric cooperative, Inc.( ISELCO) I, Isabela Electric Cooperative, Inc. (ISELCO) II, Kalinga electric cooperative, Inc. (KAELCO), Mountain Province Electric Cooperative, Inc. (MOPRECO), Nueva Ecija Electric cooperative, Inc. (NEECO II-A2), Pangasinan Electric Cooperative, Inc (PANELCO) III, Pampanga Electric Cooperative, Inc. (PELCO) I, Pampanga Electric Service Coop (PRESCO), Sorsogon Electric Cooperative, Inc. (SORECO) I, Tarlac Electric Cooperative, Inc. (TARELCO) I, and Tarlac Electric Cooperative, Inc. (TARELCO) II. All of these cooperatives have a total aggregated demand of 601 megawatts (MW).
BENECO committed 73 megawatts in the aggregation which is now undergoing activities pursuant to the rules on Competitive Selection Process (CSP)issued by the Department of Energy (DOE).
The National Electrification Administration (NEA) leads the technical working group formed together with EC representatives in the preparation of bid documents and technical parameters. The pre-bid conference was conducted on September 12, 2024.
The NEA-Special Bids Awards Committee (NEA-SBAC) has set the opening of bids on Nov. 22, 2024. Barring any unforeseen delay, the NEA-SBAC expects the power supply contract to be in place from January 31, 20205 to February 2, 2025.
BENECO’s management is hoping for a success of the CSP to avoid exposing the cooperative to the highly volatile prices of electricity in the Wholesale Electricity Spot Market (WESM).
Exposure to the said spot market will not guarantee desirable rates compared to a power supply contract which the EC wishes to secure in the aggregation bid process.
