P.25 power rate hike granted
By: KIT BAGAIPO

OBJECTIONS RAISED. Lawyer Victor dela Serna (l) argues his point during the public hearing conducted by the Energy Regulatory Commission at the Governor's Mansion Thursday for the power rate unbundling and increase sought by Bohol Light while Kag. Djingo Rama (c) and BLCI manager Engr. Noel Alingig (r) looks on. Foto: DANNY REYES

The Energy Regulatory Commission (ERC) authorized a provisional 25-centavos per kilowatt-hour increase to Bohol Light Company Inc. (BLCI) last Thursday. On the next electric billing of Bohol Light, the new rate will already apply, according to Bohol Light manager Noel Alingig in an interview with the Chronicle. The power rate hike was granted by the ERC despite the opposition filed by the provincial and city governments during the public hearing last Thursday at the Governor's Mansion.

The 25-centavo per kw/h hike could even go higher after the ERC has yet to rule on the 16.5-percent increase sought by Bohol Light.

Bohol Light applied for unbundling of rates in compliance with the requirements of the Electric Power Reform Act (EPIRA).

The ERC originally set the public hearing for two days.

However, the hearing for the power rate increase was suspended until next month by the commission.

This is to give time to the oppositors, the city and the provincial governments to present their counter-petition against the increase.

The date and venue of the second public hearing has yet to be announced by the ERC.

OBJECTIONS AIRED

Former OIC Gov. Victor dela Serna informed Commissioner Reyes that as member of the Bohol Light board of trustees, he was not informed of the application for rate increase.

He said there is a requirement under the joint venture agreement of the provincial government and the Salcon group that rate adjustments require a consensus, through a resolution, among members of the board of trustees.

Dela Serna said he will never approve of such an increase that is "disguised behind the unbundling of rates mandated by the ERC.

Meanwhile, the Sangguniang Panlungsod (SP) adopted in mass motion a resolution opposing the rate increase.

The resolution, authored by SP committee on public utilities chair Kag. Zenaido Rama, stated that implementing the power hike is "morally wrong" in the face of the economic crisis.

The SP resolution stated that they do not oppose the unbundling of rates as it is meant to identify the costs behind the rates.

However, the increase as a result of the unbundling is unjustifiable, the resolution said.

RESULT OF UNBUNDLING

After considering the application made by Bohol Light, the ERC came up with the subsequent charges to be imposed by the power utility on consumers.

Bohol Light is allowed a flat generation charge of P3.0868 in all customer classes.

Transmission charge is pegged at 59.34 centavos for residential consumers, 80.20 centavos for commercial consumers, 68.90 centavos for public buildings and street lights and 65.30 centavos for special accounts.

The distribution charge to be included in the billings is set at 89.45 centavos for residential, 41.06 centavos for commercial, 31.25 for public buildings and street lights and 26.69 centavos for special accounts.

Supply charge is pegged at P16.82 for residential and commercial consumers and P16.81 for public buildings and special accounts.

Metering charge is pegged at P5 for residential, P62.80 for commercial, P47.21 for public buildings and street lights and P73.91 for special accounts.

Systems loss charge are set at 57.93 centavos for residential, 34.14 centavos for commercial, 45.25 for public buildings and street lights and 41.02 centavos for special accounts.

In its ruling, the commission said it was "convinced that the evidence presented were substantial and the current situation which Bohol Light is confronted with, justifies the grant of provisional relief."

It said that the provisional rates granted are "just and reasonable."