Converting Beneco to stock cooperative

BEHIND THE SCENES
Alfred P. Dizon

LA TRINIDAD, Benguet–Proponents to have the Benguet Electric Coop. divided into two and have these registered with the Cooperative Development Authority are saying members who thumbed down their proposals may not have been fully appraised of the advantages.

They may only have themselves to blame as according to accounts, they were not able to defend their position adequately. As our front page story on the matter states, members during the firm’s annual general membership assembly held Dec. 3 in Bokod, Benguet agreed to shelve these for a while until proponents could sufficiently explain their position.

A pragmatic decision as haste makes waste, an old adage says. Anyhow, proponents could have cited the position taken by Ating Koop Party List Representative Isidro Lico on the matter.

According to Lico, conversion of electric cooperatives to stock cooperatives has many advantages for consumer members and cooperatives.

Lico said this during the Regional Cooperative Month commemoration. In attendance were officials from the Benguet provincial government, Cooperative Development Council and Regional Cooperative Development Council at the Benguet State University.

According to Lico, registration of electric cooperatives to the CDA as stock cooperativesis one of their primary advocacies as it has many advantages that would benefit member consumers and electric cooperatives.

First, Lico stressed, CDA registered cooperatives are exempted from the 12 percent government Value Added Tax (VAT) which would eventually result to the reduction of electric rates.

Conversion of electric cooperatives into stock coop, he added, would also give recognition to consumers as co-owners of the cooperative. In the present set-up, he added,consumers are not considered owners because there is no record of ownership and how much the consumers are contributing.

When an electric coop registers with the CDA, every contribution of consumers will be considered their capital share, which could also earn corresponding dividends, Lico said.

This, he added, would strengthen electric cooperatives because the consumers as co-owners or shareholders would seriously protect the electric cooperatives from systems loss.

He also discounted the concern that once an electric coop converts to a stock cooperative, it will no longer be supported by the National Electrification Administration. “Such concern is not true, NEA, under the Electric Power Industry Reform Act (EPIRA), is mandated to support all electric cooperatives, even if they become stock cooperatives,”Lico said.

Meantime, CDA-Cordillerasenior coop development and information officer Martin Manodonsaid pushing conversion of electric cooperatives to stock cooperatives would strengthen the coop movement in the country.

Manodon said the CDAwould establish a cooperative advisory council for the Cordillera.Citing advantages of conversion, Manodon said the Abra Electric Cooperative (ABRECO) has already registered with the CDA as a stock cooperative and is now starting to reap benefits.

Proponents for conversion have all the time to prepare their arguments until the next general assembly next year.

By then, they may be able to convince more members on the viability of their position if they work hard enough to get the data and voice these out in a rational and convincing manner instead of saying members just don’t understand.