BENECO says ERC decision averts P2.6 billion power cost burden

BAGUIO CITY, Philippines — The Benguet Electric Cooperative (BENECO) said a decision by the Energy Regulatory Commission (ERC) to allow the withdrawal of a proposed power-rate adjustment has effectively prevented about P2.6 billion in additional electricity costs from being passed on to its member-consumer-owners.

In a May 11, 2026 decision recently received by the cooperative, the ERC granted a joint motion by BENECO and its former power suppliers, TeaM (Philippines) Energy Corp. (TPEC) and TeaM Sual Corp. (TSC), to withdraw a motion seeking a rate adjustment under their Electric Power Purchase Agreement (EPPA).

The ERC also affirmed that the rates previously implemented under the EPPA were “just and reasonable,” according to the commission’s ruling as quoted in a news release issued by BENECO.

BENECO said the outcome closes a dispute that began in 2022, when TPEC and TSC sought an adjustment to recover higher coal-related costs.

The cooperative opposed the proposed increase, saying it could impose a significant financial burden on its consumers.

The cooperative said its opposition was intended to prevent the proposed additional charges, which it estimated at about P2.6 billion, from ultimately being reflected in consumers’ electricity bills.

The P2.6 billion figure is BENECO’s estimate of the additional costs it says would have been passed on to its member-consumer-owners had the proposed adjustment proceeded. 

“This is a testament to the cooperative’s unwavering commitment to prioritizing the welfare of our MCOs,” BENECO General Manager Melchor Licoben said.

“By challenging this increase, we ensured that our consumers would not bear an additional P2.6 billion burden through higher electricity bills, especially during these economically challenging times,” he said.

Licoben also said the ERC decision vindicated management’s recommendation to resist the proposed increase.

“We are vindicated in our recommendation to resist the rate increase and protect our MCOs,” Licoben said.

For consumers, the immediate significance of the decision is that the disputed additional charges will not be added to their bills under the withdrawn rate-adjustment proceeding.

BENECO said the result was particularly important for member-consumer-owners still recovering financially from the effects of the COVID-19 pandemic.

The cooperative’s former seven-member board, led at the time by then-chairperson Atty. Esteban Somngi, approved Licoben’s recommendation to oppose the proposed adjustment, BENECO said.

It identified the other directors as Jonathan C. Obar, Robert L. Valentin, Josephine B. Tuling, Peter B. Busaing, Jeffred S. Acop and Mike W. Maspil.

EC-MCO United Inc., a local consumer organization that intervened in the regulatory proceeding in support of BENECO’s position, also welcomed the ERC decision.

“This outcome cements the very protections we sought to guarantee, ensuring transparent and fair electricity rates for MCOs,” its president, Dane Ducayag, said.

The EPPA between BENECO and its former suppliers expired on March 13, 2024.

The subsequent withdrawal of the rate-adjustment motion means the dispute over the proposed adjustment has now been brought to a close, based on the ERC decision cited by BENECO.

BENECO said it would continue pursuing power supply arrangements aimed at ensuring reliable, stable and affordable electricity for consumers in Baguio City and Benguet province.