Baguio gov’t backs Beneco registration with CDA

BAGUIO CITY – The city government expressed support to decision of the board of directors and management of the Benguet Electric Coop. to register the electric cooperative with the Cooperative Development Authority as a full pledged cooperative.

Mayor Mauricio G. Domogan said with this, Beneco will be able to avail of benefits of a cooperative like tax exemption that will contribute in efforts of the EC to sustain lowering its rates for the increasing number of residential and industrial consumers.

“We believe Beneco’s registration with CDA has been long overdue and we are grateful that the board of directors and management saw the importance of actually being registered with the government regulatory agency,” Domogan said.

He claimed said it is the consumers who are being burdened by the taxes collected by Beneco imposed by government because charges are passed on to them with power firms like Beneco serving as the collection agent.

According to him, once government taxes imposed on ECs will be removed because of  tax exemption privilege once it registers with CDA, consumers will enjoy cheaper rates compared to what has now being charged them for their monthly power consumption.

Beneco attempted twice to register with the CDA over the past decade but most consumers were not in favor of the option apart from its failure to master the quorum requirement provided under existing laws, rules and regulations.

Over 14,000 Beneco member-consumer-owners favorably voted in favor of Beneco registering with the CDA during the three general assemblies conducted by the EC pursuant to its constitution and by-laws.

Among reasons advanced by pro-CDA registration advocates was to prevent Beneco from being taken over by interested private companies who are eying not only ailing ECs in the country but also performing ECs like Beneco.

It would result to higher power rates being charged to consumers because of profit-oriented power rates once a private company takes over the operation and management of Beneco, its officials said.

Beneco is now conducting information and education campaign to convince consumers to vote for the registration of the EC with the CDA for it to enjoy the mandatory tax exemption.

Under existing laws, laws and regulations, ECs are mandated to register with the CDA but they will still be under the technical supervision of the National Electrification Administration, especially on matters of the government’s energization programs among other technical concerns. -- Dexter A. See