I LEARNED from a conversation with power industry advocacy pillars that a “Petition for Conversion” originating from member-consumers of South Cotabato II Electric Cooperative (SOCOTECO II), in General Santos City, is going the rounds. This is an interesting development, given the threats faced by electric cooperatives (ECs) not only in General Santos City but also in Bohol.
But first, what are the advantages of converting SOCOTECO II into a real cooperative, which will be registered with the Cooperative Development Authority (CDA) under Republic Act (RA) No. 9520, also known as the Cooperative Code of the Philippines of 2008?
Autonomy and Independence. A CDA-registered cooperative is autonomous and independent. This means that it is governed by its members rather than being controlled by an external body. This would empower SOCOTECO II to make decisions based on its members’ needs, sans the influence of government mandates or policies. Members elect the Board of Directors (BOD), making the BOD accountable to them, effectively promoting transparency and democratic governance.
Ownership. Members of a CDA-registered cooperative have ownership. Members can purchase share capital, making them owners and granting them the right to vote in general assemblies and board elections, ensuring that their voices are heard in important decision-making processes.
Distribution of Surplus Earnings. Any surplus earnings (profits) are distributed to the members. In SOCOTECO II’s case, this suggests that if the cooperative operates profitably, the surplus can be distributed in the form of dividends based on the members’ share capital.
Access to Cooperative Benefits and Privileges. A CDA-registered cooperative enjoys several government benefits and privileges, including tax exemptions on certain transactions and revenues (subject to compliance with the BIR) and exemptions from certain fees for government transactions related to its operations.
Financial Flexibility. A CDA-registered cooperative maintains the flexibility to raise capital from its members, empowering it to fund infrastructure projects, expansion, and service improvement. Members can voluntarily invest in the cooperative, increasing its financial capacity. SOCOTECO II could access loans and financing from cooperative banks and government programs designed to support cooperatives.
Enhanced Accountability and Transparency. Real cooperatives maintain transparency in financial reporting, management, and decision-making, and members have access to financial statements and are regularly updated on the cooperative’s performance.
Community Development. SOCOTECO II can equally focus on the social and economic development of the communities it serves. Cooperatives often reinvest a portion of their surplus earnings in community projects, education programs, and other initiatives that benefit their members and the broader public.
Better Benefits for the Members. This translates into lower electricity rates; dividends and patronage refunds; greater control and participation where members would have a more significant role in shaping the future of the cooperative; access to other cooperative services; job creation and community empowerment; and alignment with the cooperative principles of voluntary and open membership; democratic member control; economic participation by members; autonomy and independence; education, training, and information; cooperation among cooperatives, and concern for community.
Given these advantages, it is only fitting and proper, not to mention, legally possible, citing Section 32 of Presidential Decree No. 269 (National Electrification Administration [NEA] Decree), as amended by Section 12 of RA No. 10531 (NEA Reform Act of 2013); Section 25 of the Implementing Rules and Regulations issued by the Department of Energy (DOE), dated July 26, 2013; DOE Circular No. 2014-01-0002, dated January 8, 2014; NEA Memorandum No. 2015-017, dated July 6, 2015; and NEA Memorandum No. 2015-034, dated November 6, 2015, to convert SOCOTECO II into a CDA-registered EC. This is a remarkable move.
The petition for conversion is addressed to the BOD of SOCOTECO II, praying for a Resolution that encompasses the conduct of a massive information, education, and communication campaign in all districts, on the importance of the law on conversion, including rights, duties and obligations of SOCOTECO II, whether stock or non-stock, incentives and disincentives, options and effects of the cooperative’s conversion and the authority and responsibilities of NEA over the cooperative, to allow advocacy groups – whether for or against one or more conversion choices, to speak during rallies and other fora that the cooperative will organize and to appropriate funds therefor, such campaign to begin not later than January 2, 2026; include as an agenda item in the 2026 Annual General Membership Assembly (AGMA) the conduct of the referendum for conversion in accordance with existing guidelines; and adopt and promulgate rules to govern the conduct of the referendum during the 2026 AGMA.
Let’s do this!
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Woman Talk with Belinda Sales is taking a wellness break. You may send your email to belindabelsales@gmail.com. Follow us on X at @ShilohRuthie./PN
