BY BELINDA SALES
BOHOL Light Company, Inc. (BLCI or Bohol Light), a distribution utility established in 2000 — the hugely controversial sale in that era, was granted a Certificate of Franchise with authority to operate light and power services for twenty-five (25) years by the National Electrification Commission and awarded a Certificate of Public Convenience and Necessity (CPCN) by the Energy Regulatory Commission (ERC) — the Philippine government’s regulating body under RA No. 9136, “for the construction, installation, operation, and maintenance of electric service in the City of Tagbilaran.”
To simplify, Bohol Light is the distribution utility (DU) in Tagbilaran City.
Bohol Light, according to House Bill No. 10888, introduced by the three Congress representatives of Bohol, namely, Edgar M. Chatto, Maria Vanessa C. Aumentado, and Kristine Alexie Besas-Tutor, is currently “owned by a consortium composed of SPC Power Corporation (SPC), SPC Light Company, Inc., ARCC Investments Inc., Pure and Pam Inc., and Mr. Joven T. Uy (the SPC Consortium)” — owning 70% of the shares, and the provincial government of Bohol — owning 30% of the shares, respectively.
The SPC Consortium, according to the bill, “now wishes to focus on other endeavors” and thus, sells its entire 70% shareholding to Primelectric Holdings Inc. (PHI). What’s interesting is that a year before Bohol Light’s franchise expires. The expiration is on October 19, 2025.
This is exactly the point raised by House Bill No. 10888: “This bill seeks to grant BOHOL LIGHT COMPANY, INC. (BLCI) a franchise to acquire, establish, operate, and maintain, for commercial purposes and in the public interest, a distribution system for the conveyance of electric power to end users in Tagbilaran City, Province of Bohol.”
Again to simplify, the sought franchise is for Bohol Light Company, Inc.
PHI, a wholly-owned subsidiary of Prime Strategic Holdings Inc., and a sister company of MORE Electric and Power Corporation (MORE Power), a DU based in Iloilo City, and the buyer of the 70% shareholding of Bohol Light, could not operate the DU in Tagbilaran City — remember, it will expire on October 19, 2025 — without a franchise which can only be granted through a Congressional Act.
A quick revisit.
In Bohol Light’s Distribution Development Plan (2016-2025), its Technical Working Group stated, “The Consortium of Salcon International, Inc. (SII), Salcon Power Corporation (SPC), and Pure and Palm Inc. was awarded the ROOMM contract (ROOMM stands for Rehabilitate-Own-Operate-Maintain and Manage Scheme) after the PGBh (Provincial Government of Bohol) adjudged the Consortium’s bid as the best complying and the most advantageous to the government and the people of Tagbilaran City among all bids received and evaluated.”
Thereafter, “A Joint Venture Agreement (JVA) was signed which allowed the Consortium to purchase, own, rehabilitate, operate, maintain, and manage the PES (Provincial Electric System) and for PGBh to sell and transfer the franchise to operate the PES in the City of Tagbilaran to the Consortium.”
If you remember, before the year 2000, the Provincial Electric System of the province of Bohol, supplied the power requirements of the electric consumers in the city of Tagbilaran.
Moving forward, “Through an Accession Agreement, on August 28, 2000, BLCI acquired the rights, interest, assets, and equipment of the Consortium composed of SII, SPC, and other members of the Joint Venture Agreement,” and thus, Bohol Light began its role, function, and operation as the DU in Tagbilaran City. From 2000 up to the present, Bohol Light has served us for twenty-four years.
In hindsight, any regular-thinking Boholano or Tagbilaranon would presume that being “the best complying and the most advantageous to the government and the people of Tagbilaran City among all bids received and evaluated” — in that era — Salcon Consortium had a long-term plan for the power development of Tagbilaran City in the areas of power reliability, efficiency, modernization, and expansion.
However, I guess it’s more convenient to sell when the going gets tough, especially when Bohol Light’s franchise is about to expire. What better way to sell your shares than at the most favorable time! But then, why would the bill seek a franchise on behalf of Bohol Light when the company has announced to one and all that they have sold all their 70% shares to PHI/Prime Strategic Holdings Inc./MORE Power?
In your layman’s mind, you think a franchise will be sought on behalf of the buyer of Bohol Light, right? Nah. House Bill No. 10888 authored by the three Congress representatives of Bohol seeks a franchise for Bohol Light to operate as a DU in Tagbilaran City even if it has sold its 70% share to another company. Perplexing.
Through the bill, Bohol Light will get the franchise for its buyer, PHI/Prime Strategic Holdings Inc./MORE Power, to operate as a DU in Tagbilaran City. That simple.
So now, after we had complained about the opposite of what Bohol Light had promised us — Boholanos and Tagbilaranons — two decades back, we conveniently agree to turn over our DU to another operator without the benefit of participatory democracy? We, the Boholano and Tagbilaranon stakeholders of Tagbilaran City were not consulted on this sale. Truly unfortunate. Where have the principles of good governance and participatory democracy gone? Gone with the wind?
What’s the rush?
What’s the scenario if we don’t get a franchise? Loss of power supply? That will not happen under ERC’s watch. ERC will make sure it does not happen in Tagbilaran City like how it adeptly managed the circumstances surrounding the legal squabble between Panay Electric Company, Inc. (PECO) and MORE Power when the latter took over the operations of PECO in Iloilo City.
Let’s remember that ERC awarded the CPCN, hence, they will ensure that during any transition phase, power service delivery will not be compromised, be it a friendly or hostile takeover. Among others, the ERC “ensures the adequate promotion of consumer interests and customer choice; promotes competition, encourages market development, and penalizes abuse of market power.”
Interesting. Reportedly, the shares of SPC Consortium were offered to the provincial government of Bohol but the province through the Sangguniang Panlalawigan, waived its right to acquire the shares of SPC Consortium in Bohol Light.
Now, whether the provincial government only consulted a few, and did not conduct a stakeholders’ consultation to involve the community in the decision-making process — I’m not aware of such and proceeded directly to decision-making, that is gravely unfortunate.
I understand that the Bohol provincial government called a consultation after the fact when Atty. Jordan M. Pizarras, a Makati-based Boholano lawyer, presented a Position Paper concerning the sale to which the provincial government responded. How strange that they didn’t call a consultation before making such a decision.
May I remind our three Congress representatives that there is no rush to obtain a franchise. Bohol Light will continue to serve our power needs in Tagbilaran City for as long as they are the DU in Tagbilaran City. It’s as simple as that. Your bill seeks a franchise for Bohol Light Company, Inc. and not for Prime Strategic Holdings Inc. or MORE Power. It’s as clear as daylight.
Finally, when did we use “convenience” as a default mechanism in governance? Are we erasing the principles of consultation, a hallmark of participatory democracy, and a sound basis for informed decision-making?
What gives?
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The writer hosts Woman Talk with Belinda Sales every Saturday, 10 a.m. at 91.1 Balita FM Tagbilaran City. Email at belindabelsales@gmail.com. X @ShilohRuthie./PN
