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BENECO rates up by P0.35/kwh

More disconnections expected

BAGUIO CITY (Feb. 1) — Electricity rates, as expected, will increase by at least P0.35 per kilowatt-hour (kwh) due to the implementation of the Reformed Value Added Tax Law (RVAT) today which allows another 2% on the previous 10% expanded value added tax (EVAT).

While the computations are yet to be finalized, all residential consumers are expected to pay P7.2252 per kwh of power consumed from Feb 1, when the additional 2% EVAT shall be implemented. The old rate with only 10% EVAT was P6.7033. There are at least 96,000 member consumers in Baguio City and Benguet, the bulk of which are residential consumers.

Likewise, commercial establishments will be charged P6.9710/kwh while the industrial sector will be charged P7.0041, public buildings, P7.0062 and streetlights, P7.2773, according to a comparative table adjusting the billing rates of the Benguet Electric Cooperative (Beneco).

Beneco General Manager Gerardo Versoza, in a Wednesday Kapihan, told the media that “he could not do anything because the power utility buys energy from the National Power Corporation (NPC), which charges 12% EVAT and uses the transmission lines of Transco, which also charges the same rate of EVAT.”

Versoza explained that for every kwh Beneco buys from NPC, it pays P0.2672 for power generation and P0.0331 for power transmission. There is a systems loss charge of an additional P0.0509 and a 10% distribution charge per kwh which Beneco has to pass on to its member-consumers.

More disconnections, despite leniency

With the increase in power rates, the Beneco Consumer Services Department will expect more disconnections as more consumers will be unable to pay for the electricity consumptions.

“We have been doing a lot of disconnections during the last quarter of 2005,” Engr. Laurence Umameng, consumer service department manager, said during the press conference. He said a lot of households were due for disconnection , but the department has been lenient in implementing.

Versoza explained that normally, upon serving the disconnection notice when the consumer fails to pay at the due date, disconnections may take place. Beneco now gives at least 15 days before it cuts power supply.

Umameng said most delinquent consumers are government offices which usually have accumulated arrears ranging from six to nine months. The list of delinquent government offices was not divulged, however, but this includes some public school buildings.

Atty. Brenda Carling of the Beneco Corporate Services Department added that even the lifeline rate consumers who receive discounts for a monthly consumption of less than 45 kwh are not exempted from the 12% EVAT.

No exemption

According to Carling, there was a proposal to exempt the lifeline rate consumers from the EVAT, but the Energy Regulatory Commission (ERC) denied Beneco’s proposal.

Lifeline consumers are subsidized according to their monthly energy consumption. A 5% discount is extended for those consuming less than 45 kwh/month, while 50% is discounted on consumption less than 20 kwh/month. In Baguio City and Benguet, these make up 33% or around 30,000 households, according to Versoza.

Versoza reiterated that the increase in electricity bills would not affect those consumed before Feb.1.

Electricity and other public utilities are included in the EVAT under the RVAT law. # Lyn V. Ramo for NORDIS

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