How much will electricity rates increase in July according to BENECO?

According to BENECO, electricity rates are projected to increase by approximately P0.60 per kilowatt-hour in July 2026.

When can consumers expect the normalization of electricity rates after the increase?

BENECO has indicated that the normalization of electricity rates is expected to occur by September 2026.

BENECO Projects Electricity Rate Hike in July, Normalization by September

Q: What is the reason for the electricity rate hike by BENECO in July 2026?

The electricity rate hike by BENECO in July 2026 is primarily due to higher electricity prices in the Wholesale Electricity Spot Market (WESM), which have been influenced by ongoing conflicts in the Middle East.

July 17, 20263 views0

The Benguet Electric Cooperative, Inc. (BENECO) has announced a projected increase in electricity rates for July 2026. Consumers can expect an increase of approximately P0.60 per kilowatt-hour. This adjustment is attributed to higher electricity prices in the Wholesale Electricity Spot Market (WESM), influenced by ongoing conflicts in the Middle East.

BENECO General Manager Melchor Licoben shared this information during a legislative inquiry by the Baguio City Council on July 13, 2026. The inquiry was initiated due to a noticeable rise in electricity rates, which increased by P1.9409/kWh from May to June, marking a 20% hike.

The increase in June’s electricity bills was primarily due to higher generation costs. BENECO sources 50% of its electricity from Thermal Luzon, Inc., which saw a 10% increase in generation rates. Additionally, 33% of electricity is purchased through the WESM, where prices rose by 57%.

Licoben explained that the increase in generation costs was temporarily cushioned by the Energy Regulatory Commission’s P6.00 cap on coal prices, which was in effect for only one month. Following this, WESM prices reverted to market-based pricing.

To mitigate future impacts, BENECO will formalize a new contract with Mansiloc Power Co. Ltd. on July 26, 2026. This agreement aims to minimize the impact of higher WESM prices through agreed lock-in rates.

BENECO is also pursuing several renewable energy projects, including a 10-megawatt mini-hydroelectric power plant in Adaway, Kabayan, and a nine-megawatt solar energy project in Tabaan Sur. These initiatives are expected to help stabilize electricity rates for consumers in Baguio and Benguet.

Details on these developments can be confirmed or updated by contacting BENECO directly.

Background & Context

Electricity rate adjustments are often influenced by external factors such as fuel prices and geopolitical events. Utilities typically enter into contracts to stabilize rates and invest in renewable energy projects to reduce dependency on volatile markets. Residents can usually contact their local utility provider for the most current information on rates and projects.