Even with the latest provisional five-percent or 25-centavo increase on the present electric power rates that the Energy Regulatory Commission (ERC) recently granted, Bohol Light Company, Inc. (BLCI) will still be imposing the lowest rate for both residential and commercial consumers compared to other utilities in Visayas. The BLCI will start imposing the increase next month until ERC rules on the power firm's application for rates unbundling. ERC commissioners handed the order dated July 20, 2007 during the public hearing Thursday last week at the Governor's Mansion where BLCI's application for power rates unbundling and the approval of its capital projects for 2007 was discussed. Under its mandate, the ERC has to act on the application within six months after its filing.

In the order signed by ERC Chairman Rodolfo B. Albano Jr. and Commissioners Raul A. Tan and Alejandro Z. Barin, the Commission said it is “convinced that the evidence presented were substantial and the current situation which BLCI is confronted with, justifies the grant of provisional relief, and in the light of such evidence believes that the provisional rates herein granted are just and reasonable. The Commission hereby provisionally authorizes BLCI to implement the unbundled rates to be effective on the first billing cycle, 30 days from receipt hereof”. For his part, Engr. Noel Alingig, BLCI manager, said electric power consumers in Tagbilaran City, the franchise area of BLCI, should not be worried of this development as its impact to individual consumer is very minimal. The new rate will be implement based on the average and is therefore, relative depending on the consumer's monthly power consumption.

With the five-percent increase, BLCI will then be charging P5.48/kwh for residential consumers and P4.71/kwh for commercial consumers. Other utilities in the Visayas are charging higher. Boheco 1 is imposing P6.58/kwh; Boheco 2, P7.05/kwh; VECO in Cebu, P6.82/kwh; PROSEILCO in Siquijor, P8.71/kwh; and PECO in Iloilo, P10.16/kwh for residential consumers. For commercial consumers, Boheco 1 charges P6.89/kwh; Boheco 2, P5.66;VECO. P6.40; PROSIELCO, P7.66/kwh; and PECO, P10.63/kwh. The rates for commercial consumers are exclusive of VAT for BIR and Universal Charges for PSALM.

Engr. Alingig also said that the rate increase is just a result of the requirement set by ERC under the Electric Power Industry Reform Act of 2000 (EPIRA) to unbundle power rates all over the country for the purpose of transparency so that power consumers will know where their payments go. He emphasized that since they took over the operations of the electric distribution sustem in the city in 2000, BLCI has not imposed any rate adjustment. He said BLCI has not even implemented the increase of P0.70 per kwh which the ERC had approved in March 2000, on the request of the defunct Provincial Public Utilities Department (PPUD). “We did not implement such increase because we respected the provision imposing a moratorium on rate adjustment as provided for in the Joint Venture Agreement (JVA) between Salcon Group and the Provincial Government of Bohol. That's why from December 2000 or the take-over date until the present, we have not imposed any rate adjustment on BLCI consumers,” he added.

Engr. Alingig also explained that it is just necessary to impose the increase, considering increases in “the prices of all commodities and other services…by various levels since 2000,…especially considering the huge investment that BLCI has infused to upgrade and make the electric system in the city efficient.” Alingig also cited a report from the National Statistics Office (NSO) that showed that as of June 2007 and within a period of seven years or from 2000 to 2007, prices of food and beverages in Bohol rose by as much as 33.80 percent; clothing by 24.80 percent; housing and repair, 33.90 percent; fuel, light and water, 81.90 percent; services, 66.90 percent and miscellaneous, 22.40 percent. Alingig also assured the public that with all the rehabilitation efforts that they have embarked, the city's electric power system is now 99.4 percent reliable as compared to its status before BLCI took over the operation which will prove an improvement with assurance of lesser brownouts and outages. BLCI system loss is now recorded at 9.5 percent, the level set by the ERC as against the 17.5 percent in 2000. (ACLB)