BAGUIO CITY — Electricity rates for residential consumers of the Benguet Electric Cooperative (BENECO) dropped for the second consecutive month in October 2026, driven in part by the removal of value-added tax (VAT) on the system loss charge.
The cooperative announced that its blended residential rate decreased by ₱0.1564 per kilowatt-hour (kWh), from ₱11.8038 in September to ₱11.6474 in October. For a household consuming 100 kWh a month, the reduction translates to approximately ₱15.64 in savings.
This follows an earlier drop in September, when rates fell by ₱0.8063 per kWh from the August rate of ₱12.61.
According to BENECO Accounting Officer Benelita Linmipao, the implementation of directives from the Energy Regulatory Commission (ERC) and the Bureau of Internal Revenue removed the 12 percent VAT on the system loss charge starting with the October billing cycle. System loss refers to electricity lost during transmission and distribution, including technical losses across power lines and transformers.
Linmipao noted that the monthly rate decrease would have been larger if not for an increase in the Universal Charge for Missionary Electrification. Under an ERC order dated 1 October 2026, the utility began collecting an incremental missionary electrification rate of ₱0.0634 per kWh. This additional charge will remain on bills for 36 months or until the authorized amount is fully collected to support power supply in off-grid and remote areas.
Consumers will also notice changes to the layout of their monthly bills starting this billing period. In compliance with ERC Resolution No. 28, distribution utilities must adopt a revised billing format that clearly separates government-mandated fees and distinguishes taxable charges from tax-exempt components.
To promote long-term rate stability, BENECO is implementing additional operational strategies. General Manager Melchor Licoben said in an interview on 14 October that the entry of Masinloc Power Partners Co. Ltd. into the cooperative’s supply mix would help cushion consumers against price volatility in the Wholesale Electricity Spot Market (WESM).
He added that the cooperative is actively negotiating with a renewable energy provider to secure lower generation costs.
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