The operation of the Cebu-Bohol Interconnection Project (CBIP) significantly lowers the cost of electricity in Bohol.

This was the explanation of both the Bohol Light Company, Inc (BLCI) and Bohol Electric Cooperative 1 (BOHECO 1) in the noticeable reduction of electricity bills beginning October.

Engr. Raul Galano, BLCI Chief Operating Officer, in a radio program on Friday, pointed out that the completion and operation of CBIP reduces line rental charges.

BOHECO 1 further underscored the significant role of the endorsement from the major stakeholders of the electric power industry through the Bohol Energy Development Advisory Group (BEDAG) for initiating the CBIP, which was energized last August 2024.

It can be recalled that the CBIP was one of two-pronged long term solutions identified by BEDAG, created by then governor now Cong. Edgar Chatto, to resolve power supply concerns in the province.

BEDAG was formed following the total blackout experienced by the province after Typhoon Yolanda damaged transmission lines in Leyte, the only power grid connection that Bohol had back then.

It then aggregated base-load power supply in the province with the assistance of USAID with the creation of One Bohol Power with the assistance of USAID through consolidating data on power demand and supply.

The aggregated power supply allowed Distribution Utilities (BLCI, BOHECO 1 & 2) to be in a better bargaining position with power supply sellers.

It also paved the way for the formulation of the Bohol Energy Development Plan in order to address Power Generation and Power Transmission.

The CBIP was then pushed along with the One Bohol Power land-based standby power plant in Ubay.

Chatto had earlier said that not only do these power developments address the need for resilient, cost efficient and environmentally sound power supply, it is also bringing in more power generation investors especially in renewable energy as excess power can now be shared to the grid through WESM.

CBIP’s 1,200 MW capacity power highway, more than meets the over 100MW power demand of the province addressing the past insufficiency of the Leyte-Bohol line to cater to the province’s demand which caused the line rental charges, Galano stated.

The high cost of line rental charges (line losses + line congestion) imposed by WESM happens when the capacity of the Leyte—Bohol Interconnection transmission network is insufficient to cater the total power requirements of the province, BOHECO 1 explained.

As a result, a power plant(s) within the province, must run in order to counterbalance the difference. These power plants are compensated through the line rental charges as billed by WESM.

BOHECO 1 affirmed that the CBIP resolves line congestion issues in Bohol’s power supply.

It noted the decrease of the Wholesale Electricity Spot Market (WESM) charges due to decreased line rental charges as well as lower generation cost.

According to BOHECO 1, as of September 2024, the average line rental charges billed monthly by WESM reached to as high as PhP1.7191/kWh (July 2024), a sizable increase compared to the prior years’ average of PhP0.3366/kWh.

Compared to the previous months, the average line rental charges billed by WESM covering the period from August 26, 2024 to September 25, 2024 which then collected by BOHECO I in its October 2024 billing period, decreased to PhP 0.2322/kWh.

Both BLCI and BOHECO cited that the primary factor in price fluctuations include generation costs incurred from contracts with power suppliers and WESM.

Power rates, they clarified, are also influenced by  demand for electricity, availability of supply, and fuel prices.