Bohol power rate manipulated?

TAGBILARAN CITY , Philippines  — The power rate imposed in Bohol might have been manipulated to effect an increase allegedly without prior notice to the public, according to Victor dela Serna, a former OIC governor who is now board member of the Bohol Light Company Inc. (BLCI). 

Dela Serna accused power supply distributors of being in cahoots with power providers to manipulate the rates. He cried foul on what he alleged was a sudden increase of power rates by almost 35 percent imposed by BLCI and Bohol Electric Cooperative (BOHECO) I and II. He alleged that this was done without any notice to the consumers nor any announcement about a petition for increase filed before the Energy Regulatory Commission.

Dela Serna said the increase to P9.50 per kilowatt per hour has contradicted to the actual P6.65 per kwH for residential and P6.23 per kwH for commercial consumption that the electric firms impose at present.

The BOHECO I and II, which supply power to towns outside of the city, were the ones imposing the increased rate to P9.50 per kwH from the previous P6.50 per kwH, but they have justified that the new rate came after they transferred their power supply deal to the Cebu Energy Development Corporation (CEDC).

The management of BOHECO also explained earlier that their previous provider, the Green Power Corporation could no longer supply for the increased demand from consumers which has reached now to about 12 MW.

BOHECO I officials said that, contrary to dela Serna's claims, the new rates had been published in the newspapers and announced through the airlanes, notifying consumers of the application for a power rate increase filed before the ERC.

Dela Serna said the cost of power generation from a geothermal plant is only P6.50 per kwH, but it reached P9.50 per kwH if produced by coal-fired generator. He alleged that BLCI and BOHECO separately entered a memorandum of agreement with CEDC and this resulted in the increase of power rates.

"In the case of Tagbilaran, which is supplied by BLCI, it gets electricity from Tongonan geothermal at P6.50 per kilowatt hour," but an exchange deal arrangement made Salcon's coal-fired power plant in Naga as the new supplier for Bohol, resulting in the higher price, dela Serna alleged.

BLCI spokesperson May Hope Arcenal rebutted dela Serna, saying the firm is still getting 80 percent of its power supply from the remaining government-run facilities of Napocor based on an old contract that expires in 2012 yet.

She said that BLCI however has to explore for additional sources from among the independent power producers through the Wholesale Electricity Spot Market (WESM) to meet the increasing demand of city consumers. She added that BLCI's rate for residential consumers is only P6.65 per kwH, while commercial establishments have to pay a lesser rate of P6.23 per kwH in consideration of their higher consumption.

Arcenal even said that these rates might even go lower by several centavos if BLCI can close a deal with an IPP that would offer cheaper price. It is only on power generation and transmission factor that prices can fluctuate, of which BLCI has no control.

On the distribution, however, BLCI has maintained its usual rate. In the past, commercial consumers shouldered the cross subsidy for residential consumers until BLCI started applying rates unbundling in 2007, she said.