BENECO joins LECA to reduce future electricity tariffs – HERALD EXPRESS

BAGUIO CITY – Hoping to provide consumers with lower power generation rates over the next 15 years, the Benguet Electric Cooperative (BENECO) has joined the Luzon Electric Cooperative Aggregation (LECA) in a bid to provide low-cost electricity.

BENECO’s Emergency Power Supply Agreement (EPSA) with its current supplier Limay Power Incorporated (LPI), a subsidiary of San Miguel Corporation, expires the first week of March 2025.

EPSA was acquired following the expiration of BENECO’s 20-year power supply agreement with TEAM Energy (formerly Mirant) on March 13, 2024.

BENECO is determined to secure a longer-term power supply agreement through pooling before the expiration of EPSA.

The aggregation joined the demand of 18 electric cooperatives (ECs) to be able to provide reasonable rates of electricity generation. EC: Albay Electric Cooperative, Inc., BENECO, Camarines Electric Cooperative, Inc. (CASURECO) I, CASURECO II, Central Pangasinan Electric Cooperative, Inc., Ilocos Norte Electric Cooperative, Inc., Ilocos Sur Electric Cooperative, Inc., Isabela Electric Cooperative, Inc. (ISELCO) I, ISELCO II, Kalinga Electric Cooperative, Inc., Mountain Province Electric Cooperative, Inc., Nueva Ecija Electric Cooperative, Inc. II-A2, Pangasinan Electric Cooperative, Inc. III, Pampanga Electric Cooperative, Inc. I, Pampanga Electric Service Coop, Sorsogon Electric Cooperative, Inc. I, Tarlac Electric Cooperative, Inc. (TARELCO) I and TARELCO II.

The total cumulative demand of this group is 601 megawatts.

BENECO has allocated 73 megawatts for the unit, which is currently undergoing work in accordance with the Competitive Selection Process (CSP) guidelines issued by the Department of Energy (DOE).

The National Electrification Administration (NEA) is leading a technical working group created jointly with EU representatives to prepare tender documents and technical parameters. The pre-tender conference was held on September 12, 2024.

The NEA-SBAC Bid Award Committee (NEA-SBAC) has set the bidding opening for November 22, 2024. Barring any unforeseen delays, NEA-SBAC expects the power supply contract to run from January 31, 20205 through February. 2, 2025.

BENECO management hopes for the success of the CSP to avoid exposing the cooperative to highly volatile electricity prices in the wholesale electricity spot market.

Entering the said spot market will not guarantee the desired prices compared to the electricity supply contract that the EC wishes to secure through the aggregate bidding process. Author: LSI