Consumers of the Benguet Electric Cooperative (BENECO) will experience an increase in their June 2026 electricity bills due to higher generation costs.
BENECO’s overall rate increased by P1.9409 per kilowatthour (kWh), bringing the June rate to P11.6450/kWh from P9.7041/kWh in May 2026. For a household consuming 100 kWh, this translates to an increase of approximately P194.00.
The increase is primarily attributed to the significant rise in the Wholesale Electricity Spot Market (WESM) prices and the increase in the bilateral contract rate of Therma Luzon, Inc. (TLI).
For the June billing period, WESM rates increased by approximately P2.70/kWh, while TLI rates increased by around P0.50/kWh. Meanwhile, BENECO is still awaiting the approval of the Energy Regulatory Commission (ERC) on the power rates of Masinloc Power Partners Co. Ltd.
Generation charges account for about 58% of the consumers’ unbundled electricity rate, while distribution charges account for approximately 14%.
The significant increase in WESM charges is attributed to the tight supply condition in Luzon, as evidenced by the issuance of Yellow and Red Alert statuses by the System Operator from May 13 to 15, 2026. During this period, rotational brownouts through Manual Load Dropping (MLD) were implemented to maintain the stability and security of the grid.
The Yellow and Red Alert statuses were caused by forced outages of several power plants, transmission constraints and increased electricity demand amid the hot and dry season, which consequently exerted upward pressure on WESM prices.
Generation costs were likewise affected by the increase in coal prices. Under the Indonesian Coal Index (ICI), Index 2 increased from US$84.8433 per metric tonne in May to US$88.2367 in June, while Index 3 increased from US$67.8333 to US$72.7933 during the same period. The depreciation of the Philippine peso against the US dollar also contributed to the increase in generation costs.
BENECO clarified that generation charges are pass-through costs that are collected and remitted directly to power suppliers and the WESM. These amounts are not retained by BENECO. The only charges retained by BENECO are its Distribution, Supply, and Metering (DSM) charges and the Reinvestment Fund for Sustainable CAPEX, which collectively account for about 14% of the total electricity bill. These charges have remained unchanged since 2009, and BENECO has no pending application for an increase before the ERC.
“In response to the continuing supply challenges in the Luzon grid, we encourage our member-consumer-owners to continue practicing energy efficiency and conservation measures. Small efforts to manage electricity consumption can help reduce household electricity bills while contributing to the overall stability of the power system,” said General Manager Melchor S. Licoben.
