Electric coops do not need CDA: lawyer

July 20th, 2012

By Loui S. Maliza

A LAWYER said electric cooperatives do not need to be registered with the Cooperative Development Authority (CDA) to become stronger in servicing its concessionaires. Lawyer Chito Oclarit said electric cooperatives are created by law under the supervision of the National Electrification Administration (NEA).

“That’s why we’re not fake,” Oclarit said in response to allegations that most of electric cooperatives are actually operating not as “genuine cooperatives.”

Oclarit is one of the legal counsels for the Misamis Oriental Rural Electric Service Cooperative in Laguindingan town, Misamis Oriental.

He said once the electric cooperatives register with the CDA, it would practically become as stock organization.

“And if we become as stock cooperative, our rural electrification projects would be stopped. We cannot anymore help the rural areas to be energized. We already exist 40 years ago, and this is our program to energize even those areas that are not viable,” he said.

Running well
Out of 119 electric cooperatives, only 12 registered with the CDA. “But most of them went bankrupted,” Oclarit said. He said electric cooperatives are “running well,” and do not need the supervision of the cooperative agency.

“If we become as stock cooperative, maybe only five people control certain electric cooperative,” he warned.

The lawyer even said electric cooperatives branded as “fake” are earning that it can even finance its rural energization programs.

Tax exemption and dividends
According to the CDA, electric cooperatives are tax exempt if registered with the cooperative department. But according to Oclarit, it would be more advantageous for the power providers to stay under the umbrella of the NEA.

“Electric cooperatives are taxed up to one percent only and we give return of investment (ROI) in the form of dividends to the members from eight to 12 percent. What if these dividends are used to energize the rural areas, it would be more advantageous to the government. Even President Benigno Aquino supports the rural electrification programs of these electric cooperatives,” he said.

As non-stock non-profit organization, electric cooperatives are giving ROIs to its concessionaires in the form of “patronage credit.”

“We’re not looking at returning the investments of the consumers… we are concentrating on our rural electrification programs. We need to give priorities to the people first before dividends,” he said.

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  • conversion of philippine electric cooperatives from non-stock non-profit to stock and for profit
  • eastern samar electric cooperative inc non profit

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3 Comments for Electric coops do not need CDA: lawyer

  • 1. francis
    July 26th, 2012 at 10:18 am

    tama, hindi na kailangan ng electric coop under c.d.a, dahil katulad namin napakagulo my faction na ang mga employees at nagugulohan ang member-consumers from DANECO

  • 2. Junie Atok
    July 26th, 2012 at 1:48 pm

    mao ba francis? aw kay unsa ba jud ang maau sa c.d.a? naa man gipost sa bileco facebook, klaro man to kaau basi sa opisyal nga report sa mga nabuhat sa mga elec coop hilabi na apil ang naa sa c.d.a. nga wala man diay nada kung adto na sa c.d.a……. patay ta samot sa kamahal sa kuryente kung adto pa ta sa cda! mas mahal pa diay ang cd.a kay sa karon nga sitwasyon. aw naa man tngali moangay pero ang mopaburot nga dagko ug kapital ra pod diay sa kita kung naa na sa c.d.a.! na hala undanga na kini nga kalihokan oy kay mosamot lang ta kalisod sa kamahal sa kuryente kung sa c.d.a na! ang tibuok pilipinas man diay nahiagom niani, dili lang ta denhi sa biliran! maayo pa diay ta kay ang ato bayranan kumpara sa tanan elec coop sa nasod naa man lang ta sa tunga-tunga. pero ang naa sa c.d.a patay grabe pa kamahal kaau!

  • 3. Junie Atok
    July 26th, 2012 at 2:30 pm

    nagtxt ko sa ako migo taga davao del norte, pwerte man jud diay samoka sa ila didto apektado daw serbisyo kuryente nga bag-o sila mibalhin sa c.d.a.! bahin daw sa bayronon sa kuryente barato lang unta sila dati kumpara denhi sa bisayas, apan ugaling lang kay last year pa, sige lang sila brown out! mao daw suko pod mga tawo! pero ingon ako migo nga dili man sayop sa daneco ang sige ug brown out kay mag-agad ra man daw sa ihatag sa gipalitan nila kuryente ang daneco. balita bitaw sila didto tibook mindanaw nga sige lang brown out kay kulang ila kuryente ug sukad daw gi private na ang ila mga planta! mura daw gituyo sa mga nakapalit sa gobyerno sa mga planta kay aron maka hunat sila baligya mahal nga presyo kuryente sa mga taga elec coop. na hala unsa na ni imbes diay unta sila nag c.d.a aron maharuhay, nasamok na man hinuon! ang ila ra ba gipangadaman didto kay sa ila daw sitwasyon karon tingali ug momahal pa labaw ila kuryente….sayop daw desisyon nga ingon ako migo kung dili ta gusto mahitabo denhi dili daw ta mosunod paraho nila!

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