BENECO: P891-M TO FUND POWER DISTRIBUTION UPGRADES CY 2025-2032

July 5, 2025 Metro BLISTT

P334.611M needed to energize 206 sitios

BAGUIO CITY

Almost one billion pesos has been earmarked for Distribution Development Plan for a period of seven years (2025-2032), the Benguet Electric Cooperative (BENECO) said. Following the Board approval of proposed investments, aimed at addressing growing electricity demand and improving grid stability in its franchise area. It intended to finance crucial infrastructure projects , expand its franchise capacity, modernize assets inspired by BENECO’s core value C-A-RE-S which stands for Capacity-Affordability- Reliability -Efficiency- Sustainability for its thousands of customers. The utilization scheme starts at P264.392 million in 2025; P108.192 million for 2026; P95.343M for 2027; P84.288M 2028; P87.644M 2029; P85.091M 2030; P85.126M 2031;and P81.436M 2032 for a total of P891,515,868 million.

The total amount covers the following – SubstationDevelopment Projects , Primary Development Projects; Secondary Development Projects ; Other Network Projects; and Non-Network Projects. The report was based on the presentation by BENECO officials led by its GM Engr. Mel Licoben , Engr. Olive Bete, Executive Services & Compliance Officer ,and some members of the Board during a press forum held on July 3 (2025). BENECO emphasized that those funds will be utilized to maintain the safety, efficiency, and reliability of its power
distribution network, covering preventive maintenance, emergency repairs, and system upgrades. It was learned that BENECO has not increase its power rates for 16 years since 2009. Mainly attributed by its efficient management ,and its power supply sourced from coal powered generation.

BENECO has a working capital of P849.725 million with a net worth of P2.899 million. Development of renewable energy projects also focused Beneco’s projects. These projects include
Certificate of Authority for the proposed 5 megawatts in Kabayan; Continuation of the propose Solar Project at Tabaan Sur,Tuba; Other potential projects in Kabayan, Tuba, Tublay and Bakun. In fact, in 2023 and 2024, BENECO was categorized as AAA distribution facility , the highest mark issued by state-run regulatory body-National Electrification Administration (NEA). Other developments, in 2024 BENECO’s systems loss at 7.76 percent compared on the 10.25 percent national standard . The utility collection efficiency a high at 99.42 percent, praised by consumers timely payment, and BENECO officials expressed gratitude.

Bete explained that only 15 percent goes to BENECO’s operation for each consumer’s payment. The utility by law acts as the collector and remit to power supplier.. National Grid Corporation of the Philippines (NGCP) , Power Sector Assets and Liabilities Management (PSALM) among others of the so-called pass on charges . ‘Pass-through charges in electricity bills are costs that distribution utilities (DUs) collect from consumers to cover expenses beyond their own distribution costs, such as generation, transmission, and other mandatory
charges.’ On power outages , termed as System Average Interruption Frequency Index (SAIFI),the utility has 10.76 beat the national standard of 20 times in a year. Regarding SAIDI (System Average Interruption Duration Index), BENECO recorded 24.65 beating also the national standard of 45.

About share capital, in 2023, BENECO has collected P35 million increased to P56 million in 2024. Bete explained that since no projects in 2023, said share capital amounts were placed in the bank for ‘high yielding time deposit.’ In turn ,it earned P629K ,and gave it back to consumers proportionately thru a discounted payment of their power bills. In 2024, earnings from share capital grew at P2.2 million It was also learned that BENECO is compliant as it passed the seven parameters set by Cooperative Development Authority (CDA).

Primo Agatep/ABN