Member-consumers say no to Beneco conversion 06-07-23

	NORDIS WEEKLY July 23, 2006
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Member-consumers say no to Beneco conversion
BAGUIO CITY (July 22) — Member-consumers backed the position of the management to retain the present status of the Benguet Electric Cooperative (Beneco) as a non-stock, non-profit organization. District 8 Member-consumer Electrification Committee Chairman Esteban Busoy said that if Beneco were converted to a stock cooperative it would become profit-oriented instead of service-oriented. He added that Beneco would not be able to serve the poorer consumers if it becomes profit-oriented. Busoy added that once Beneco is converted, the National Electrification Administration (NEA) would no longer assist the cooperative. He said if this happens, Beneco would solely shoulder service and maintenance expenses. Octavious Galong, director of the Baguio City Nutrition Multi-purpose Cooperative said that Beneco’s maintenance is very expensive especially in a province that is often hit by typhoons. He said when converted, it is but logical for the cooperative to increase electric charges for maintenance and service cost. Galong also hit the dividends that the pro-conversion group is dangling. “Only those few who can afford to buy stocks will benefit from dividends but the greater number of small consumers will not benefit,” he said. According to Leonardo Belingon, Beneco Employees Labor Union and National Solidarity of Unions, Electric Cooperatives president, once converted, Beneco would not be able to uphold the rural electrification program of its present management. He said that at present 33% of Beneco consumers are marginalized and there are still many areas needing electrification. Belingon admitted that once Beneco is converted, the labor union could ask for wage and benefit hike. However, he added that there is also a possibility of massive lay-off. Belingon further said that the issue of conversion is brought about by the passage of Republic Act 9136 Electric Power Industry Reform Act (EPIRA) Law in 2001. # Kim Quitasol for NORDIS Post your comments, reactions to this article
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	NORDIS WEEKLY July 23, 2006
Home \| To bottom	Previous \| Next
Member-consumers say no to Beneco conversion
BAGUIO CITY (July 22) — Member-consumers backed the position of the management to retain the present status of the Benguet Electric Cooperative (Beneco) as a non-stock, non-profit organization. District 8 Member-consumer Electrification Committee Chairman Esteban Busoy said that if Beneco were converted to a stock cooperative it would become profit-oriented instead of service-oriented. He added that Beneco would not be able to serve the poorer consumers if it becomes profit-oriented. Busoy added that once Beneco is converted, the National Electrification Administration (NEA) would no longer assist the cooperative. He said if this happens, Beneco would solely shoulder service and maintenance expenses. Octavious Galong, director of the Baguio City Nutrition Multi-purpose Cooperative said that Beneco’s maintenance is very expensive especially in a province that is often hit by typhoons. He said when converted, it is but logical for the cooperative to increase electric charges for maintenance and service cost. Galong also hit the dividends that the pro-conversion group is dangling. “Only those few who can afford to buy stocks will benefit from dividends but the greater number of small consumers will not benefit,” he said. According to Leonardo Belingon, Beneco Employees Labor Union and National Solidarity of Unions, Electric Cooperatives president, once converted, Beneco would not be able to uphold the rural electrification program of its present management. He said that at present 33% of Beneco consumers are marginalized and there are still many areas needing electrification. Belingon admitted that once Beneco is converted, the labor union could ask for wage and benefit hike. However, he added that there is also a possibility of massive lay-off. Belingon further said that the issue of conversion is brought about by the passage of Republic Act 9136 Electric Power Industry Reform Act (EPIRA) Law in 2001. # Kim Quitasol for NORDIS Post your comments, reactions to this article
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