BAGUIO CITY — Residents of Baguio City and Benguet will have to pay higher electricity bills as the Benguet Electric Cooperative announced an electricity rate increase of P0.6450 per kilowatt-hour for the July 2026 billing cycle.

The adjustment raises the residential power rate to P12.2900 per kilowatt-hour. Cooperative officials requested patience from consumers regarding the price hike, noting that overall rates remain competitive with other distribution utilities nationwide.

High costs from the Wholesale Electricity Spot Market (WESM) primarily caused the rate adjustment. The spot market supplied about 52% of the cooperative's total power requirements during this billing period, with its average cost rising by P1.0610 per kilowatt-hour.

The cost of power supplied by Therma Luzon Inc. increased by P0.0487 per kilowatt-hour, further elevating total generation costs.

Management expects power prices to stabilize following the implementation of a new supply contract. A power supply agreement with Masinloc Power Partners Co. Ltd. takes effect on July 26, 2026.

Beneco General Manager Melchor Licoben stated that this new source will introduce more competitive pricing to the cooperative's portfolio, reducing exposure to volatile spot market prices and leading to more stable billing by September 2026.

The cooperative clarified that recent price fluctuations contrast with lower power costs recorded earlier in the year. The average blended generation rate from January to June 2026 stayed at P4.8091 per kilowatt-hour because of lower spot market prices during those months. Officials also reiterated that distribution, supply, metering, and capital expenditure charges have not changed since 2009.

These fixed internal charges account for 10% to 14% of the total electric bill and represent the only funds retained by the cooperative for operations and maintenance. The remaining balances consist of pass-through charges for generation, transmission, taxes, and subsidies that are remitted to external entities.

To mitigate the financial impact, the utility advised consumers to practice energy conservation and use efficient appliances.