The Sangguniang Panlalawigan (SP) of Bohol has issued a resolution ordering Governor Aris Aumentado to take necessary legal action to protect the interests of the Provincial Government of Bohol and its people from the sale of SPC Power Corp.’s stake in Bohol Light to the Razon Group.
The resolution, issued on September 3, 2024, comes after the Center for Governance, Accountability, and Review (CGAR) informed the Sangguniang Panlalawigan that SPC Power’s sale of its 70% stake in Bohol Light to Primelectric, a subsidiary of the Razon Group, without prior written approval from the Provincial Government of Bohol, is a ground for terminating the Joint Venture Agreement (JVA) between the Provincial Government and SPC Power.
According to CGAR, led by former Cabinet Secretary Jun Evasco, the transfer of SPC Power’s stake in Bohol Light to the Razon Group without the Provincial Government’s approval is a clear violation of Article 13 of the Joint Venture Agreement.
CGAR member and former Tagbilaran City Mayor Dan Neri Lim has stressed that the Provincial Government should have a say in choosing its partner in Bohol Light, not SPC Power.
Lim suggested that the Provincial Government should conduct a competitive selection process to determine the best partner for Bohol Light, considering other conglomerates such as MERALCO, Aboitiz Power, San Miguel Corporation, the Yuchengco Group, and SM, which have expressed interest in the power and electric distribution industry.
CGAR has questioned Governor Aumentado’s inaction on the sale, which they believe may have the implied blessing of the Governor, prejudicing the Provincial Government’s ability to choose the best operator for Bohol Light and incorporate consumer protection in the deal.
Prior to the resolution, Lim had questioned the appointment of Argeo Mellisimo as a member of the Board of Directors of Bohol Light, representing the Provincial Government of Bohol.
Lim alleged that Mellisimo has business ties to Villareal, the controlling stockholder of SPC Power, and that the Governor’s appointment of Mellisimo bolsters Villareal’s interest in Bohol Light over the interest of the Tagbilaranon electric consumers.
CGAR has reserved its right to hold Governor Aumentado accountable at the Ombudsman if he fails to take action on the termination of the Joint Venture Agreement.
This is not the first time the Governor has faced scrutiny, having been suspended by the Ombudsman on charges of gross negligence for inaction against illegal structures at the Chocolate Hills National Geological Monument.
The Center for Governance, Accountability, and Review was created by Governor Aumentado to investigate irregularities in the Provincial Government of Bohol. Its members include former Cabinet Secretary Jun Evasco, former City Mayor Dan Neri Lim, former Executive Judge Sucesso Arcamo, and former Provincial Chief Prosecutor Macario Delusa.
HIGH POWER RATES
In a related development, the Sangguniang Panlalawigan (SP) of Bohol is set to investigate complaints of high power rates, particularly among consumers of Bohol Electric Cooperative 1 and 2 (BOHECO 1 and 2).
The inquiry was prompted by a privilege speech delivered by Board Member Tomas Abapo Jr. during a regular session on Tuesday.
Abapo’s speech addressed the concerns from Boholano consumers about the perceived high power rates.
BOHECO 2 acknowledged that power rates did increase in August compared to July, but disputed claims that the rates almost doubled.
According to BOHECO 2, the increase was only about P3 per kilowatt hour.
The cooperative attributed the higher bills to increased consumption, saying it was impossible to charge double the amount from the previous month without a corresponding increase in usage.
However, some consumers have expressed concerns that they were not informed about the rate increase.
Similar complaints have also been reported among consumers of BOHECO 1.
The rate increase is attributed to higher generation charges, which are driven by more expensive power purchased through the Wholesale Electricity Spot Market (WESM).
SP’s inquiry aims to shed light on the issue and address concerns from consumers.
INFLATION RATE
Meanwhile, the inflation rate in Bohol province has dropped to 2.1% in August, down from 4.9% in July, according to the Philippine Statistics Authority (PSA).
The decline was attributed to lower prices in several commodity groups, including food and non-alcoholic beverages, which decreased from 8.0% to 3.5%, transport, which fell from 3.8% to -1.1%, and housing, water, electricity, gas, and other fuels, which dropped from 0.9% to -0.7%.
PSA also reported that the inflation rate in August was lower than in July for several major commodity groups, including food and non-alcoholic beverages, clothing, furniture, household maintenance, recreation, education, and restaurant and accommodation services.
The food inflation rate also decreased from 8.5% in July to 3.7% in August.
The inflation rate for the bottom 30% of households by income also declined from 9.8% in July to 5.7% in August.
The top contributors to inflation in August were rice, which accounted for 65.2% of the total, actual rentals paid by tenants for housing, which accounted for 19.6%, firewood, including pellets and briquettes, which accounted for 9.6%, vegetables, fruits, and other food items, which accounted for 5.9%, and domestic services, which accounted for 5.6%.
PSA has been holding monthly press conferences since February 2024 to educate the public about inflation and its effects on prices.