Baguio Water District calibrates plan for supply to all consumers

The Benguet Electric Cooperative (Beneco) recorded a 100.51 percent collection efficiency in its April collections amid fuel crisis and the Department of Energy’s directive not to disconnect those who are unable to pay their electric bills amid the financial difficulties because of the crisis in Middle East.

“Majority of our electric consumers paid their bills on time to avoid a surcharge. There were even some who pay in advance,” said Laarni Ilagan, Community Relations associate of Beneco said on Thursday.

She said that this is despite the order for electric distribution utilities like Beneco not to disconnect those who will not pay or cannot pay their electric bills.

She said there were 221,177 bills processed on the said period.

She relayed gratitude to the Beneco consumers who are responsible and understands the plight of the utility cooperative which the member-consumers themselves own.

She that electric cooperatives are only allowed to retain operation the distribution, supply, and metering charges which is only about 10 percent of a consumer’s monthly bill. All other charges are simply collected by the cooperative and remitted to the appropriate offices like the National Grid Corporation of the Philippines (NGCP) for the wheeling fee, the supplier for the generation charge and others passed on to them to collect.

She talked of the importance of having a high collection efficiency for a distribution where the money to pay suppliers are sourced.

“If there is no collection, we will not have the money to pay the supplier. We will be penalized or worse, our supply will be disconnected which will lead to a black out of the whole franchise area in Baguio City and Benguet province,” she said.

She said that Beneco uses cash flow methodology that provides no margin for profit compared to private companies where they are allowed a margin for return on investment or profit.

The cooperative currently holds the “Triple A” classification which is the highest classification that an electric distribution utility can have.

Good performance

Beneco reported not just a high collection efficiency but also a significant drop in system loss.

Engr. Melchor Licoben, general manager of Beneco said that the system loss (SL) fell to 5.31 percent compared to the 7.5 percent over the past three months.

This is attributed to decline in non-technical losses and improved billing cycles.  

Energy Regulatory Commission (ERC) allows a 10.25 systems loss.

“A lower system loss percentage translates to lower costs for consumers,” he said.

He also reported a 19 percent reduction in fuel consumption for March and April as an effect of the energy conservation stance amid the fuel crisis.

However, the high cost of fuel in the global market has offset the monetary savings.

“Let’s continue to save but let us not sacrifice our work,” Licoben urged, noting that while fuel prices have recently dipped slightly, the duration of the energy crisis remains uncertain. (PNA)