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A recent emergency power deal between Benguet Electric Cooperative (Beneco) and Aboitiz Power’s GN Power Dinginin (GNPD) guarantees a steady electricity supply for Baguio and Benguet province.
Beneco General Manager Melchor Licoben noted that the one-year Emergency Power Supply Agreement (EPSA) it signed with Limay Power expired last February 2025. “We need to secure another power agreement to ensure na tuluy-tuloy ang kuryente para sa consumers natin (a continuous supply of electricity for our consumers),” he said.
The electric cooperative secured a five-month contract with GNPD while awaiting Energy Regulatory Commission (ERC) approval for a 15-year power agreement. Signed on February 3, the long-term deal splits 50% of the electricity supply between Aboitiz Power’s Therma Luzon, Inc. and San Miguel Corp.’s Masinloc Power.
(Also read: SNAP Begins Work on First BESS in Cordilleras)
In dire need of power
Beneco serves over 200,000 power connections across Baguio City and Benguet, with a daily electricity demand of 100 megawatts (MW).
According to Licoben, Beneco reached out to 13 power producers for a 73-MW supply to address short-term energy requirements. Four companies sent proposals, and the selected provider was chosen based on the best terms and conditions.
He explained that while the Wholesale Electricity Spot Market (WESM) could meet Beneco’s daily power needs, the management was concerned about the market’s price instability, especially with summer approaching.
“We wanted to have a fixed price of power that we will obtain through a contract due to the volatility of the market. Hindi natin alam baka mas mataas sa WESM, wala na tayong choice na kukuhanan, kaya mas pinili namin ang EPSA, at maliit na porsyento lang ang manggagaling sa WESM (“We can’t predict if WESM prices will rise, leaving us with no other options, so we chose the EPSA with only a small percentage from WESM),” he stated.
Challenges and improvement measures
A quick look at BENECO’s Facebook page reveals a series of scheduled power outages throughout April 2025. On April 3, outages occurred from 9:00 AM to 5:00 PM in both Baguio City and La Trinidad due to construction work and line reconfiguration. The disruptions would continue on April 4 and April 5, with similar durations from 9:00 AM to 5:00 PM.
However, emergency power interruptions have also occurred almost daily, much to the frustration of consumers. One user quipped, “This is no ordinary blackout! BENECO has switched to DST (daylight saving) mode!”
Another expressed their concerns about the scheduled outages, saying, “Thank you NGCP-BENECO for the heads up, but we hope the maintenance can be scheduled at a more convenient time to avoid disrupting work and business operations.”
Apart from its frequent power interruptions, BENECO has faced several controversies in recent years, particularly concerning its leadership and management practices.
In 2021, a leadership dispute emerged when the National Electrification Administration (NEA) appointed a new general manager, leading to internal conflicts within BENECO. This situation resulted in operational disruptions, with armed police forcibly entering locked doors to install the NEA-appointed general manager and employee protests.
By January 2024, NEA intervened by removing the conflicting officials in an attempt to resolve the dispute. Subsequently, the Court of Appeals criticized NEA for “abuse of discretion” in its handling of the leadership row.
In February 2023, NEA requested the Department of Justice to investigate possible criminal acts and irregularities by former BENECO officials, following adverse findings from a financial and management audit.
In March 2024, BENECO announced a transmission charge increase of PHP0.3667 per kilowatt-hour (kWh), attributing the hike to a 509% surge in contingency reserve charges from the National Grid Corporation of the Philippines (NGCP). This led to concerns about the transparency of billing practices.
Still, the cooperative has been taking steps to improve. Last month, BENECO introduced stricter financial policies, transferring the corporate social responsibility (CSR) program from the Board of Directors to the Internal Service Department (ISD) to prevent misuse. This restructuring eliminates past abuses, such as excessive allowances, and requires ISD approval for all assistance requests.
In 2024, BENECO adopted advanced technology to enhance distribution reliability. It introduced fault locator technology, detecting abnormalities within a 10-meter radius and identifying threats like fires.
(Also read: IPPs Commit to Rapid Outage Resolution)
Reliable power: A must for Baguio’s economy
Baguio City, often referred to as the “Summer Capital of the Philippines,” is a prominent tourist destination, especially during the summer months. The city’s cool climate, scenic parks, and vibrant cultural scene attract visitors year-round, with peak numbers typically observed during summer.
In 2024, the Department of Tourism’s Cordillera office reported that tourist arrivals in Baguio reached over 1.56 million, marking an increase from the 1.31 million the previous year. In fact, over 75% of the region’s 1.98 million recorded visitors last year traveled to Baguio. The region aims to attract international visitors to boost foreign tourism across various destinations, further strengthening the local economy.
Tourism significantly contributes to Baguio’s economy, accounting for approximately 20% to 25% of the city’s Gross Domestic Product (GDP).
In 2024, Baguio City’s economy grew 9%, reaching P169.12 billion from P155.11 billion in 2022, the fastest in the Cordillera region. Key drivers included a 34.3% rise in accommodation and food services and a 16.4% increase in transport. Services led at 73.7% of Gross Domestic Product (GDP), followed by industry (25.8%) and agriculture (0.5%).
Powering Baguio’s Future
As Baguio City cements its status as a key economic and tourism hub in the Cordillera region, a stable and reliable power supply remains crucial to sustaining its growth. The city’s expanding hospitality, transportation, and services sectors all depend on uninterrupted electricity, ensuring businesses thrive and visitors enjoy a seamless experience.
Proactive steps must be taken to address power challenges, going beyond short-term fixes strategies to meet increasing demand. A resilient power infrastructure will not only support Baguio’s economic momentum but also drive broader regional development, benefiting businesses, residents, and tourists alike.
Sources:
https://www.pna.gov.ph/articles/1244850
https://www.facebook.com/photo/?fbid=722978266743270&set=a.313761207664980
https://www.pna.gov.ph/articles/1150876
https://www.rappler.com/philippines/nea-police-storm-beneco-office-install-new-general-manager
https://energycentral.com/news/ca-raps-nea-abuse-discretion-benguet-utility-leadership-row
https://northluzonmonitor.com/beneco-ends-misuse-of-funds-tightens-policies-on-directors-privileges/
https://www.beneco.com.ph/article.php?id=141
https://baguioheraldexpressonline.com/baguio-tourist-arrivals-reach-1-56-million/
https://pia.gov.ph/tourism-plays-big-role-in-baguio-citys-economy