Baguio city: The Benguet Electric Cooperative (Beneco) is devising strategies to mitigate the impact of escalating oil prices on its power services, which cater to 250,000 consumer members. Beneco General Manager Melchor Licoben announced these plans during the 'Kapihan with CARE' event at the cooperative's main office.
According to Philippines News Agency, Licoben highlighted that while the fuel price surge is beyond their control, Beneco is taking actionable steps to manage aspects within their reach. The cooperative is introducing these plans to ensure stable pricing and uninterrupted service for member consumer-owners.
In response to current challenges, Beneco has implemented several fuel and energy-saving measures. These include prohibiting crew from taking service vehicles home and encouraging carpooling. Additionally, they have enforced a policy to switch off lights when not in use. These steps were taken after anticipating a potential increase in the cooperative's fuel expenses by as much as PHP1 million monthly.
Beneco is also in the process of obtaining permits to construct an oil depot with a capacity of 50,000 liters for diesel and 20,000 liters for gasoline. This initiative aims to cater to their fleet of 100 cars and 40 motorcycles, potentially saving the cooperative PHP1.2 million to PHP1.3 million monthly through direct fuel purchases from importers.
This year, Beneco plans to convert at least 16 vehicles to electric vehicles, with the goal of having 60 percent of its fleet powered by electricity by 2030. Licoben mentioned that they are awaiting approval from the Energy Regulatory Commission (ERC) for a 36-megawatt (MW) power supply contract with Masinloc Power Co. Ltd. This contract is expected to decrease their 70 percent reliance on the Wholesale Electricity Spot Market (WESM).
Licoben explained that the cost fluctuations in the WESM, driven by fuel price increases, are passed on to consumers. He expressed hope that reducing dependency on the WESM would alleviate this burden.
Furthermore, Beneco aims to establish its own renewable energy production facilities, including four hydropower plants with a combined capacity of 17 MW in Kabayan, Benguet, and a 10-MW solar power plant in Tuba. Licoben emphasized the necessity of self-producing power to ensure a stable supply for consumers.
For these renewable energy initiatives, Beneco plans to rely on the minimum PHP2,000 capital share contribution from its 250,000 consumers. This approach is intended to avoid borrowing from financial institutions, which would incur interest costs ultimately passed on to consumers. Licoben encouraged consumers to contribute their capital share, highlighting the benefits of reliable power and affordable electricity costs.
