Ceneco must stay nonprofit – prexy

BACOLOD City – Central Negros Electric Cooperative (Ceneco) president Roy Cordova wants the power distribution utility to remain a nonstock, nonprofit cooperative.

Nonstock, nonprofit cooperatives are under the supervision of the National Electrification Administration (NEA).

The Ceneco management is set to hold a referendum (vote) on the status of the cooperative within the year. Currently it is holding an information campaign on what to do during the vote and what it means.

Cordova prefers that Ceneco stays under the NEA.

Turning Ceneco i nto a stock cooperative/ corporation will attract many capitalists and risk making it a profit- raking facility, said Cordova, also a member of the advocacy group Utilities Consumers Alliance of Negros (UCAN).

Meanwhile UCAN has no problem with the planned referendum as long as Ceneco holds a public consultation first.

Group counsel Vicente Petierre III said Ceneco must ensure consumer- members understand the pros and cons of their options.

All electric cooperatives in the Philippines were urged to hold a referendum on their status.

Section 25-A of the implementing rules and regulations for the NEA Reform Act of 2013 mandates all remaining electric cooperatives that are nonstock to hold a vote on whether they should:

* remain a nonstock, nonprofit electric cooperative under the NEA

* convert into a stock cooperative under the Cooperative Development Authority

* convert into a stock corporation under the Securities and Exchange Commission./