THE Primelectric Holdings, Incorporated (PHI), a subsidiary of Razon-led firm More Power electric and Power Corp., becomes the owner of the 70% shares of the Bohol Light Company, Inc. (BLCI) after it acquired the distribution utility (DU) from SPC Power Corp as confirmed by PHI president Roel Castro.
“Acquiring BLCI is a valuable opportunity that should not be missed,” he said in a statement.
The PHI’s acquisition of BLCI is expected to have a joint venture agreement (JVA) inked with the provincial government soon considering the latter has retained 30% of the light company.
As this developed, the buyback plan of the provincial government of Bohol is rendered remote, if not, hopeless.
The move of the Center for Governance, Accountability and Review (CGAR) member and lawyer Jordan Pizaras to convince the provincial government for a buyback appeared to be an exercise in futility.
Bohol provincial government appeared to be interested to a buyback when the Sangguniang Panlalawigan asked SPC Power Corp “to hold in abeyance” for 60 more days for further study of the plan. This came after it told SPC Power, earlier, that it’s not interested to acquire the 70% stakes in BLCI for primarily lack of financial capability and technical know-how.
SPC Power Corp. has given the provincial government 60 days to a buyback scheme the BLCI’s 70% shares early this year after it wanted BLCI to dispose of.
What remains now for the provincial government’s holding is the 30% shares of the BLCI since the former Provincial Public Utilities Department (PPUD), the light and water arms of the provincial government, was sold to SPC Power by then Gov. Rene L. Relampagos’ administration to the tune of P155 million.
Castro affirmed the Primelectric’s entry into BLCI aims to further elevate consumer services standards thru substantial capital investment for at least P1 billion in rehabilitating and modernizing 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,” Castro said.
The entry of PHI will continue to improve its performance and deliver quality service to BLCI consumers.
James Roy N. Villareal, executive vice-president of SPC Power, expressed satisfaction with the acquisition by the Razon group of the BLCI, emphasizing consumer welfare as a focal point.
Villareal laude the Priemelectric’s track record, mainly thru More power, for significantly enhancing consumer service in Ilo-ilo city, influencing their decision to sell shares. He expressed confidence that consumers will benefit from Primelectric’s stewardship.
Primelectric is slated to assume operations control this year and will initiate the franchise renewal application in Congress alongside the provincial government, the statement said.
BLCI franchise is to expire sometime in October 2025.
PHI has this to say on BLCI. BLCI has demonstrated strong financial performance, and experienced management team and a competent labor force in the power distribution business.
As a distribution utility, it has established a track record in maintaining the lowest distribution rats in Bohol with remarkably few exceptions. It has expanded and upgraded is facilities, such as the 20MVA substation, which is one of its kind in the province in terms of innovative and mobility. Its reliability performance rating is consistently categorized as level A.
As a corporate citizen, it responds swiftly to emergencies and has earned several recognitions and awards from the Department of Energy and the City of Tagbilaran.
BLCI has been operating in the best interest of its customers, making significant contributions to the growth of the economy, not just in Tagbilaran City but also in the province of Bohol.
From the time it took over the utility, BLCI has greatly improved the power system and delivery in its franchise area in terms of reliability, quality and affordability. It has substantially lowered the system losses and continually improved its services for better customer convenience. (rvo)
