by Jaydar Medroso
EDITOR’S NOTE: The author is the national coordinator of People’s Oversight Watchdog for Energy Reforms (POWER). an organization that promotes transparency in the energy industry as well as the protection of consumer rights for a sustainable and affordable energy sector and industry. POWER’s aim is to promote a consumer sector that is empowered to make choices to create an industry that is transparent, reliable and sustainable. The people behind POWER advocate for consumer and industry partnership. They also advocate open competition in the industry to provide consumers with affordable alternatives to their current electricity needs. The organization is based in Cebu City.)
With the current (Coronavirus disease) Covid-19 pandemic not ending soon, the energy and power industry sector continues to face the challenges in making sure we have quality and enough sources to support the whole archipelago.
Currently, the province of Bohol is facing a pressing problem: where to get their electricity source? This problem is not Bohol’s alone as there are other areas in the archipelago with the same predicament.
Unknown to most Boholanos, there is an ongoing bidding for the long-term electricity supply for the island. (Bohol Electric Cooperative) BOHECO 1, BOHECO 2, and Bohol Light Company Inc. (BLCI) have grouped together (known as One Bohol Power) to source their power supply as one.
This is a good move. Together, they can order a bigger volume and in theory command a better price.
Their demands from power suppliers are interesting — build a power plant on the island of Bohol enough for the entire requirement of the island and also provide backup power within the island.
The catch is: the contract being offered is also only for 10 years.
The problem with these requirements is the resulting price of power.
Early estimates already show the price of power in Bohol going up to P14 per kWh, from the current P7/kwh. This is due to the massive capital requirements needed for building a power plant on the island, a backup facility on the island, and the time to recover all these investments in just ten (10) years.
The people behind the bidding are asking for too much while giving potential bidders a small window to recover their investment.
More than 15 bidders have signified their intention to help Bohol with its power supply but most are saying the cost implications to the residents and businesses of Bohol may be too high.
We hope the local government unit of Bohol will seriously look into what is happening to secure the energy security of Bohol while at the same time ensure the resulting cost to consumers is manageable.
The consumers of Bohol must also observe the proceedings intently.