Cheaper electricity from coop conversion?
July 13th, 2012
By DEXTER A. SEE
BAGUIO CITY, Philippines – The conversion of electric cooperatives (ECs) from their current non-stock and non-profit status to stock cooperatives may or may not result in cheaper power rates.
Ronaldo del Mundo, an electrical engineering professor of the University of the Philippines-National Engineering Center (UP-NEC), said here over the weekend that even if electric cooperatives are converted, cheaper power rates is not guaranteed.
Del Mundo said the Cooperative Development Authority (CDA) has not even come up with permanent mechanisms or guidelines on how to handle ECs that register with the agency, thus, converting electric cooperatives and registering as stock cooperatives will likely open a possible monopoly of the power distribution in a certain place.
This is so, he said, because private distribution utilities will likely takeover a mismanaged electric cooperative with high power rates and unstable systems loss.
Del Mundo said that in the computation of rates, the provision of profit will be included in the determination of the rates to be charged to their consumers, thus, CDA-registered electric cooperatives will surely have much higher power rates considering the patronage refund to be given out to its members.
On the matter of the taxes now being forcibly charged to electric cooperatives that do not register with CDA and opt to stay with the National Electrification Administration (NEA), Del Mundo advised general managers and members of the board of non-stock and non-profit cooperatives to immediately file a petition for rate increase with the Energy Regulatory Commission (ERC) to include the computations for taxes in the rates of consumers that would mean higher power rates in a certain place which will be to the disadvantage of consumers.
For Text Advisory:
Cheaper electricity from coop conversion?
The conversion of electric coops (ECs) from their current non-stock and non-profit status to stock cooperatives may not result in cheaper power rates.
Ronaldo del Mundo, an electrical engineering professor of the UP-NEC, said that even if ECs are converted, cheaper power rates is not guaranteed.
Del Mundo said that in the computation of rates, the provision of profit will be included in the determination of the rates to be charged to their consumers, thus, CDA-registered electric cooperatives will surely have much higher power rates considering the patronage refund to be given out to its members.
Dexter A. See, Manila Bulletin
Tags: Cheaper electricity, coop conversion
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4 Comments for Cheaper electricity from coop conversion?
1.
ating
July 18th, 2012 at 3:18 pm
wala lagih mo comment ani….? gi hide lagih ni nga isyo? tinuod kaha nang imong pagmahal sa katawhan sa probinsya? oh kaha sa karon ra na nga isyo ky ti election nah?
2.
genrose
July 20th, 2012 at 9:44 am
its because jdr cannot give us sa ilang projected nga rate after conversion. this means it is not assured nga mo ubos ang taripa under cda
3.
tagabukid
July 20th, 2012 at 10:41 am
Mao lagi bitaw unta in fairness naa may mga tawo nga tinuoray gusto gyud makatampo sa kaayohan sa lugar. Apan kini kay si JDR man ang misugyot nga makabarato daw kung naa sa CDA, KINAHANGLAN gyud nga iya ipakita denhi ang iya computation ug ang mga opisyal nga rate gikolekta sa mga nahimo na karon nga naa sa CDA kung mibarato ba.
Dili gyud kita magpadali-dali niining atik sa mga tawo nga nailhan na nato KINSA siya…. sa FM radyo pa: “kailangan pa bang imomorize yan?!”
Unya kay gusto man kaha ni JDR mag referendum kay naa daw sila 10K nga signatures (hehehe balido kaha ni sila nga membro-kunsomedor kay mao ra raba ang dawaton), kinsa man ang iya gusto pagastohon, bileco? Nahibawo na ba si JDR pila ang magasto sa referendum nga iyang gusto? karon kung bileco mogasto, DILI BA MAGPATONG NA MAN POD SILA SA ATON BILL kay nonprofit man karon (kung unsa ang aprobado gastohon mao ra ang makolekta – kung naay wala maapil sa pag-aproba sa sugod sa tuig paghimo sa budgte, ipatong sa sa bills karon) para sa gustong referendum daw ni JDR? hehehe wala siya kuyapi? Iyang kiat kitay mogasto?
Well, kung siya ang mogasto sa referendum kay gitugot man sa balaod, GO JDR GO, pag referendum nga IMONG GASTO kay wala man siguro problema sa mga tawo maminaw na lang unya mi hain ang SAKTO NGA PUNTO!
4.
tagabukid
July 20th, 2012 at 2:39 pm
“WHY CHANGE THE WHEEL?” The SOLECO Experience.
Click Here: http://www.evmailnews.com/pro-nea-pro-cda-groups-face-off-at-power-forum
Points to Ponder:
1. Notwithstanding from the “blah blah” unexperienced pro CDA speakers, it is worthy to note one Rep. Payuyo a former PALECO GM who proudly divulged a P60T dividends and patronage refund to a “SINGLE-BIGGEST CUSTOMER”! Wow, so this means under the CDA, the bigger a person money invested for the coop, the more it returns. So now, which is more pro-poor, under CDA which is capital capacity based or the existing under NEA which is FAIR AND EQUAL FOR ALL? Also, it is very interesting that Rep. Payuyo DID NOT divulged HOW MUCH is the present EFFECTIVE POWER RATE of PALECO under CDA. Ngano kaha?
2. Take a clear understanding of i-Care Rep. Rivera the former Board President of BATELCO II and ANTI-CDA, are we not going to learn their experience from the DOWNFALL of BATELCO II under the CDA but was eventually recovered back in their effort of RETURN UNDER NEA?
3. How about the last speaker ANTI-CDA Alan Lanniva? Are we going to rely the ‘self-assumed expertise’ of CDA movers like JDR than this person-Lanniva’s field of depth and masteral understanding on electric power industry in the Philippines?
4. And where is Pet Ilagan of NASECORE, JDR’s mentor? Focus closely of his statement in the last part of this article? IS IT REALLY CONVINCING to have our present BILECO under NEA to be converted under CDA?
NOW DO YOU HAVE FRIENDS AND RELATIVES living in Southern Leyte who are also actively concern of elec coop? Ask them now about their gained information, experience and decision?
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