Consumer advocacy on electric cooperatives

Posted on February 15th, 2008

IN THE PROVINCE of Iloilo, there is also an urgent need to reform and rationalize the electric cooperatives – Ileco I and II – that provide the electric power to the entire province.

The concerns and grievances of members-consumers have, for years, been undermined, technically circumvented and avoided by the management of these cooperatives because of the personal agenda of the officers. It is common knowledge that majority of the cooperative board members won in the election because they were front candidates of powerful politicians lording in their respective areas. They are never beholden to the members-consumers who legally and morally own the electric cooperatives.

In view of this, a group of well-meaning and idealistic members-consumers from Ileco I and II held an organizational meeting at the Provincial Cooperative Development Office in the provincial capitol last February 12, 2008 and was generously hosted by PCDO OIC Mila Layug.

The meeting was also skillfully moderated by Dr. Arnold M. Naldoza, chairman of the Iloilo Provincial Cooperative Development Council.

The group represented the members-consumers from the different towns covered by Ileco I and II. The activity synthesized the members-consumers’ grievances as follows:

1.    Ownership of the cooperative – While Ileco I GM Fred Billena categorically stated in his June 28, 2005 letter to ERC Executive Director Maria Castañeda that “Definitely, the owners of the electric cooperatives (EC) are the members-consumers,” still and until now, there is no ownership paper in whatever form that we members-consumers are holding as proof.

2.    The form of organization that the coop will adopt – The boards of Ileco I and II should listen to the overwhelming sentiment of members-consumers that they PREFER a cooperative organization registered with the Cooperative Development Authority (CDA) rather than a corporation registered with the Securities and Exchange Commission (SEC). In fact there are now SEVEN electric cooperatives in the country registered with the CDA and can now truly be called an electric cooperative. Isn’t it that when such overwhelming sentiments are brought to the attention of Ileco management, it automatically resorts to technical run around such as invoking the 3rd option (neither “male or female”) as provided by Republic Act 9136 (EPIRA 2010) that the coop can exist under PD 269 and at the same time pay its property tax just like a corporation. Why not heed the popular clamor of its members-consumer and work towards a full cooperative registered with the CDA?

There are still many other concerns such as the issuance of patronage credit/refund which we will discuss on our next issue. Based on the reactions and enthusiasm of those present during the initial organizational meeting, there is now a ground swelling of support from all sectors of the members-consumer that is agitating for reform. An officer of the Philippine Councilor’s League Iloilo Province present during the meeting had committed the full and active support of the PCL to this advocacy group tentatively called the Electric Consumer Welfare Cooperative (ECWC).

The Councilor’s League is dangling the threat of taxation even on electric posts if Ileco does not register as a cooperative with the Cooperative Development Authority and issue the required shares certificates and patronage credits.

This is just the first step. At the moment, we the members-consumers are all in the gutter but thanks to this but idealistic group who are looking to the stars so that in the foreseeable future we can be members of a genuine cooperative enjoying the rights and privileges attached to it.

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