[ Manila Bulletin Online ] July 18, 2008
Beneco reports big savings from purchase of power at WESM
LA TRINIDAD, Benguet – The comparatively cheaper power purchased by the Benguet Electric Cooperative (Beneco) from the wholesale electricity spot market (WESM) would mean lower power rates for the over 120,000 consumers who are groaning about the burden of high prices.
This was reported by Gerardo P. Verzosa, Beneco general manager, who said that the power cooperative has already reduced the quantity of power it is purchasing from the National Power Corp. (Napocor) and TeaM Energy, formerly Mirant, because it is now getting cheaper power from WESM.
The cooperative started purchasing power from WESM during the April 26May 25, 2008 period. It purchased 3.242 million kilowatthours during the onemonth period.
Republic Act 9136, otherwise known as the Electric Power Industry Reform Act (EPIRA), mandates electric cooperatives to get 10 percent of its total monthly power requirement from WESM.
WESM allows electric suppliers and buyers to trade electricity as a commodity, which cannot be stored and which is impossible to trace which generator had supplied a certain buyer.
Verzosa said for the April 26-May 25 billing, Beneco purchased 14 million kilowatt hours from Napocor at R63.39 million at a generation cost of R4.5279 per kilowatthour.
At the same time, it purchased 6.789 million kilowatthours from TeaM at R30.74 million at the same generation cost.
In the past, the utility cooperative purchased power from Napocor as much as 20 million kilowatt hours at a comparatively high price.
Verzosa said the electric cooperative is saving a big amount by getting its power supply from the WESM because it purchases power during off-peak periods or when electricity is sold at cheapest price.
Beneco records show that the offpeak period in Baguio and Benguet is from 11 p.m. to 8 a.m. when electricity price is R1.8477 per kilowatt hour compared to R6.061 per kilowatthour during the peak period of from 10 a.m. to 4 p.m. and 7 p.m. to 10 p.m.
Verzosa cited another advantage of purchasing power from WSM. Electricity suppliers would prefer to dispose of power even for free during the off-peak hours rather than shutting down the power plants.
He said that power consumers could also save big amount by diverting their power consumption during the off-peak period.
If local consumers are able to adjust their power needs, the Beneco official said, there would be a significant reduction in their monthly power bills because this would reflect the actual cost of power purchased from WESM.
