Cooperatives bled users P55B in 2010

A PROTEST for the allegedly unaccounted members’ contribution for capital expenditures (MMC) included in their electric bills is being called today (Friday) to the more than five million households serviced by electric cooperatives.

Representative Nicanor Briones of AGAP partylist urged the switching off of lights for one hour starting 9 p.m., seeking to call the attention of President Benigno Aquino 3rd to stop the allegedly illegal MMC collection which amounted to P55 billion as of 2010.

He also asked for a full accounting of the funds already collected to determine where officials of electric cooperatives spend the amount.

Briones said that the government should impose their membership to the Cooperative Development Authority, following the alleged mismanagement of electric cooperatives funds and the increases in electric rates.

According to him, the MCC represents P0.1518 to P0.6686 per kilowatt-hour of electric consumption of each household that gets power from NEA-registered cooperatives.

“How the collection was spent or where it is stashed, none of the more than five million households know. But from our computation, some cooperatives like Batelec II have collected over P1 billion while others not lower than P400 million,” he raised, adding that Batangas Electric Cooperative II (Batelec II) covers two cities and 15 municipalities in Batangas and is considered the biggest cooperative in the country with at least 238,401 customers.

Further, Briones said that, Batelec II’s MCC collection reached P12.7 million for May alone. The total for the year could reach a staggering P153.1 million. “This is highway robbery in broad daylight. Batelec II must explain where the money went or refund the full amount to its consumers,” Briones stated.

He also called for the immediate conduct of elections of the board of directors of Batelec II, saying that the current officers have been serving for over eight years now and appear to be bent at perpetuating themselves in power.

“On the average it can be said that the 107 NEA registered electric cooperatives are charging MCC’s to its customers as well, with an annual collection estimate of P2.7 billion or a total P55 billion as of today,” he said.

Moreover, Briones said that fairness dictates that electric cooperatives must now be registered as full consumer cooperatives registered with the Cooperatives Development Authority and make the MCC collected members’ capital share.

The partylist lawmaker said that move would lower electricity due to tax exemptions and member dividends, apart from adherence to genuine consumer ownership. –Ruben D. Manahan 4th, Reporter, Manila Times