The procurement of a long-term power supply agreement and the renewal of the franchise of the Benguet Electric Cooperative are the priorities of the distribution utility’s new leadership as it braces for measures to adjust to the challenges of the new normal.
Beneco’s 25-year supply contract with Team Energy is set to expire in 2024 while its 50-year franchise is valid until 2028, prompting the management to already start shopping this early for possible power suppliers and to also prepare the regulatory requirements for the filing of an application to renew franchise before the Congress.
Melchor Licoben, newly designated OIC general manager, told the board of directors in last week’s meeting that as part of his short and long-term plans, he is bent on rallying the cooperative to now act on its power requirements or risk total exposure in a volatile electricity market when the time comes.
He said Beneco could not afford to relax or remain inactive due to the Covid-19 pandemic since the charts show that its monthly demand of 80 megawatts is expected to surge to 92 MW by 2025 and 104 MW by 2030.
However, the demand forecast could go down by 10 MW following the reduction of demand during the community quarantine, he said.
Licoben, a 52-year-old engineer, said Beneco is looking at the possibility of joining the aggregation scheme of the other electric cooperatives in the Ilocos and Cordillera regions to be able to bag a cheaper cost of power.
“The process would have to undergo a competitive selection process (CSP) since the Department of Energy now frowns over negotiated supply through bilateral agreements,” Licoben said.
Hopefully, he said, the renewable energy projects of the electric cooperative would be finished in due time so that their generated capacity could help address Beneco’s base load requirements. – Press release
