It’s final. Prime Electric has acquired a 70% stake in the Bohol Light Company, Inc. (BLCI), making it the new owner of the power utility company without any opposition from the administration of Governor Aris Aumentado.
Prime Electric Holdings, Inc. (PHI), a subsidiary of the Razon Group of Companies owned by billionaire businessman Enrique Razon, has taken over the majority shares of BLCI.
The Razon Group also owns MORE Power in Iloilo City and Negros Electric and Power Corp. (NEPC) in Bacolod City.
During a press conference held on August 22, 2024 at the Bohol Tropics Resort, James Villareal of the Salcon consortium confirmed that the majority shares of the company were sold for P350 million.
Roel Castro, President and CEO of Prime Electric Holdings, stated that the acquisition followed all necessary procedures, including the right of first refusal by the provincial government of Bohol.
Castro also mentioned that the Sangguniang Panlalawigan (SP) of Bohol had passed a resolution requesting a delay in the acquisition, but Prime Electric had already completed the necessary steps.
SP passed the resolution even though the sale had long been consummated, reports said.
Villareal expressed confusion over the SP Bohol’s move, as the province had initially been informed of the sale of the 70% stake in BLCI.
The province had previously been notified of the sale through a resolution, but later requested a delay in the acquisition.
The Center for Governance Accountability and Review (CGAR) led by Ex-Cabsec Leoncio “Toloy” Evasco had written to the province to review the decision, and even threatened to file a plunder case if the decision was found to be questionable.
Addressing concerns from consumers in the city about a possible increase in electricity prices, Castro assured that the electric power industry is regulated by the government, and therefore, prices cannot be increased arbitrarily.
He explained that the government agency responsible for controlling prices would prevent any sudden increases.
Castro also stated that the acquisition of BLCI by Prime Electric is expected to improve the services of the company.
He assured that the current employees of BLCI would remain in their positions, even after the takeover, and that any changes in management would be for the benefit of all stakeholders.
Reports said the acquisition of BLCI by Prime Electric is a gesture of development in the power industry in Bohol, and is expected to bring about improvements in the services provided by the company.
BILLIONAIRE OWNER
PHI is part of a group led by billionaire Enrique Razon, who is also affiliated with More Power Corporation based in Iloilo City.
The acquisition marks a strategic move for PHI as it seeks to enhance its portfolio in the energy sector, online reports said.
James Roy Villareal, Executive Vice President of SPC, confirmed the sale and highlighted the potential of BLCI as a valuable asset.
“Acquiring BLCI is a valuable opportunity that should not be missed,” said Roel Castro, president of PHI.
He said that BLCI has shown strong financial performance, backed by an experienced management team and a skilled workforce in the power distribution sector.
Castro outlined PHI’s commitment to improving consumer service standards, stating that the company plans to invest at least P1 billion in the rehabilitation and modernization of BLCI’s distribution assets.
“We are well-prepared, both technically and financially, to execute the rehabilitation and modernization strategy, ensuring a robust distribution system within the franchise area,” he added.
BLCI, which provides electric power distribution services to Tagbilaran City, is currently owned 70% by SPC and 30% by the provincial government of Bohol.
The entry of PHI is expected to enhance BLCI’s operational performance and service delivery to its consumers, Razon’s group said.
Villareal expressed optimism regarding the acquisition, stressing that consumer welfare will remain a priority under the new ownership.
PHI is set to assume operational control of BLCI later this year and will begin the process of applying for a franchise renewal in Congress, as BLCI’s current franchise is scheduled to expire in October 2025.
BLCI AT GLANCE
Bohol Light Company, Inc. (BLCI) is a power distribution utility serving Tagbilaran City, the capital of Bohol.
Established in 2000, BLCI has been providing reliable electricity to the city’s residents and businesses for over two decades.
BLCI is a privately-owned company, with 70% of its shares held by private investors and the remaining 30% owned by the Provincial Government of Bohol (PGB).
The company is governed by a Board of Directors, which includes seven members, two of whom represent the PGB.
BLCI has obtained several key regulatory approvals and franchises to operate in Tagbilaran City:
– Certificate of Public Convenience and Necessity (CPCN) from the Energy Regulatory Commission (ERC) under RA No. 9136, valid from June 12, 1996, to June 12, 2021 and Certificate of Franchise from the National Electrification Commission (NEC) to operate light and power services for a period of 25 years, valid until October 19, 2025.
Over the years, BLCI has demonstrated strong financial performance, supported by an experienced management team and a competent workforce.
The company is committed to delivering quality service to its consumers and continuously improving its operations.
PHI plans to invest at least P1 billion in rehabilitating and modernizing BLCI’s distribution assets to further elevate consumer service standards within the franchise area.
With the entry of PHI, BLCI is poised to continue its growth trajectory and maintain its position as a reliable power provider in Tagbilaran City, reports said.
The company will also initiate the franchise renewal application in Congress, as its current franchise is set to expire in October 2025, the reports added.