Beneco to refund P64M to 120,000 consumers

>> Monday, July 26, 2010

LA TRINIDAD, Benguet – The management of the Benguet Electric Coop. here will refund to its over P120,000 consumers around P64 million pursuant to separate orders handed down by the Energy Regulatory Commission as upheld by the Court of Appeals.

Out of the said amount P33.9 million will be refunded to the consumers as alleged over collection of the controversial power purchase adjustment (PPA), P29.5 million as loan condonation and at least P1.06 million representing meter deposits.

Gerardo P. Verzosa, Beneco general manager, said the refund for the loan condonation was reflected in the monthly power bills of the consumers while the refund for PPA and meter deposits will be implemented in the July billing of the residential and commercial consumers.

However, the ERC decision is not only applicable to the rural electric cooperative in Baguio and Benguet but the same is also applicable to other large, medium and small electric cooperatives nationwide after the regulating body found out that the power firms have allegedly over collected the controversial PPA to their respective member consumers.

During the time of the Energy Regulatory Board, Beneco was adjudged one of the most outstanding rural cooperatives because of reported under collections in the PPA for a good number of years but when the regulating body was replaced by ERC, there was a sudden change in decision and declared BENECO and other rural electric cooperatives to have reportedly over collected the said pass on rate.

Considering that the CA ruling regarding their question on the alleged flawed ERC decision has attained finality, he revealed the cooperative will implement the refund on a staggered basis in order to preserve and protect the interest of the utility company which is servicing non-viable remote villages in the province.

Baguio city accounts for over 85 percent of the total number of Beneco consumers but the source of power comes from the hydroelectric power plants based in Benguet.

According to him, the refund to the consumers will not significantly affect their performance in delivering quality and efficient power to its consumers since the refund was computed in such a way that no service of the cooperative will be compromised.

Despite the order for the utility company to refund a substantial part of its resources to the consumers, Verzosa assured consumers there will be no interruption of their service except during scheduled power outages by the national Grid Corporation of the Philippines and that their efficiency and effectiveness will not be affected.

Moreover, the power firm will continuously implement their expansion projects in order to address the growing demand for power considering the rapid influx of investors in the Baguio, Benguet area which has recorded multi-billion investments over the past several years.

Part of its expansion project is the purchase of a 1.2-hectare lot within the heart of Baguio City which will become the one-stop shop of the power firm as well as the site where 2 50mva substations will be constructed to address the power demand of the two areas in the next 30 years. -- Dexter A. See

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