One Bohol Power (1BP) acceded to the request of Governor Aris Aumentado for an unredacted copy of the Power Supply Agreement (PSA) between the three Distribution Utilities (DUs) in Bohol and Energy Development Corporation (EDC).
1BP and EDC inked a ten-year PSA to supply the province with an aggregate capacity of 87.2 megawatts (mws) for the next ten years starting December 2023.
1BP is a group whose members are the Bohol Light Company Incorporated (BLCI) operating in Tagbilaran City, Bohol Electric Cooperative 1 serving twenty-six municipalities and Bohol Electric Cooperative 2 providing electricity to twenty-one towns completed the bidding through a Joint Competitive Selection Process (J-CSP) as mandated by the Department of Energy (DOE) to provide at all times an uninterrupted power supply to Bohol from a combination of an “in-island base load power plant and an outside Bohol base load plant.”
A copy of the PSA was received by the provincial government last month but Aumentado expressed dismay after the contract contained sections that were blacked out ostensibly relating to power rates and computations that will serve as the basis for the power rates Bohol consumers will be paying for the next ten years.
Aumentado was out of reach when contacted by the Chronicle, however, Atty. Handel Lagunay, Provincial Legal Officer said that a letter was sent to 1BP informing them that EDC did not interpose any objections to the release of the full contents of the PSA.
1BP claimed, in a letter to Aumentado that they were bound by a non-disclosure provision in the contract not to reveal information about the power rates and computations to the public.
In a meeting held last week between the provincial government and 1BP, the Chronicle learned that First Gen Corporation owner of EDC agreed to provide the unredacted copy of the PSA agreement to the provincial government.
Engr. Danilo Quidlat chair of the Technical Working Group of 1BP confirmed to the Chronicle the release of the unredacted copy to the provincial government.
Several issues were raised by concerned stakeholders, in the absence of an unredacted PSA is the capacity of EDC to supply the 87 megawatts from its unified Leyte geothermal plant in the absence of proof that it still has uncontracted base load capacities from its geothermal plant despite the tight supply situation in the power industry.
The provincial government also expressed concern over the absence in the PSA of provisions if diesel fuel is used and factored during islanding operation and the comparison of the rate structure with the proposed rates of the disqualified bidders.
Considering the current consumer price indices, EDC’s proposed tariff of PhP4.9214, at a 70% load factor the rate could go up to close to PhP5.00/kWH, according to sources in the government.
The proposed rates of the four disqualified bidders were also raised for comparison with the rate structure of EDC whose offer was the highest at PhP5.2168/kWH.
The proposed bids ranged from a low of PhP3.0405/kWH to PhP5.1897/kWH submitted by Therma Visayas, Inc., Solar Philippines Power Project Holdings, Inc., Global Business Power Corporation, San Miguel Corporation Global Power Holdings Corp and Bohol Hybrid Energy Corp.
EDC will supply Bohol with geothermal power from Leyte and an in-island diesel backup power to assure a 24/7 power supply even when the province is disconnected from the grid. (Chito M. Visarra)