BLCI issued 25-year franchise by NEC

CONNTRARY to speculations, the Bohol Light Company, Inc. (BLCI) was issued a twenty-five year franchise that entitles it to operate electric light and power distribution system in Tagbilaran City by the National Electrification Commission (NEC) which will expire on October 20, 2025 yet. Records show that the NEC through a decision in Case No. 2000-10 granted BLCI the franchise which was made effective retroactive on October 20, 2000, the date when BLCI applied for the authority with the Commission.

It may be recalled that on August 28, 2000, the provincial government of Bohol through then Gov. Rene Relampagos entered into a Joint Venture Agreement (JVA) with a Consortium led by Salcon Group of Companies, involving the provincial electric system (PES) and the provincial waterworks system (PWS), which gave birth to BLCI and the Bohol Water Utilities, Inc. (BWUI). The JVA created the BLCI and BWUI, both special purpose companies, to rehabilitate-own-operate-and-maintain the old electric and waterworks system, respectively, in the city of Tagbilaran through an arrangement where the Salcon consortium holds a 70% stake while the provincial government of Bohol settled for a 30% share in it.

In preparation for its formal take over of the PES, BLCI filed an application for its own franchise for the operation of an electric and power system in the city before the National Electrification Commission in Manila . However, considering the process which goes with the application and pending its approval by the Commission the province executed a Deed of Assignment covering the transfer and conveyance of the franchise issued to the former Bohol Provincial Electric System (BPES), which was managed by the then Provincial Public Utilities Department (PPUD), in favor of BLCI. The original BPES franchise was renewed on February 7, 2000 , after it expired on June 11, 1996 which is supposed to expire in 2021 yet. The BPES was issued a franchise by the then Public Service Commission on May 18, 1931 or seventy-six years ago.

In granting the BLCI a franchise, the NEC also approved the Deed of Assignment executed by the province in favor of the Joint-Venture Company to use the old BPES franchise until such time that a new franchise is issued. The Certificate of Franchise issued to BLCI provides that “this franchise is granted subject to the conditionalities prescribed in the decision of the Commission, and further subject to amendment, alteration or repeal by the Congress of the Philippines, when the common good so requires”.

On the other hand, BLCI was also granted a provisional Certificate of Public Convenience and Necessity (CPCN) by the Energy Regulatory Commission on September 13, 2004 signed by Chairman Rodolfo Albano, Jr. and Commissioners Oliver Butalid and Jesus Alcordo. The approval of the application of BLCI for a CPCN before the ERC was made temporary while its final approval is pending before the energy regulatory body. franchise is an authority issued by the government which exactly defines the area of coverage for which a particular power distribution utility can operate while a Certificate of Public Convenience and Necessity (CPCN) ensures that such a distribution company is technically and financially capable of delivering the goods to its target clientele or as enunciated in the EPIRA law, a distribution utility must be able to “provide to end-users safe, adequate, reliable and efficient electric service for customer's optimum satisfaction”.

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