Saturday, November 11, 2006 Only SC can block power coop referendum, execs say By Jane Cadalig
Despite repeated moves to defer the referendum for the conversion of the Benguet Electric Cooperative (Beneco), its management and board of directors are determined to go on saying only the Supreme Court (SC) could bar the undertaking.
Beneco officials were one in saying that the referendum must push through, in contrast to their earlier pronouncements that it is not yet the right time to convert the distribution firm's status.
The referendum was first scheduled last September 2 but was restrained by the court through a temporary restraining order (TRO), which lapsed last September 21.
A petition for the issuance of a writ of preliminary injunction against the referendum is pending before a local court but Beneco officials are invoking Section 78 of the Electric Power Industry Reform Act (Epira), which states that only the high court could bar the proceedings.
The management scheduled the referendum on November 25, for consumers to decide from the three options for conversion - to become a stock entity under the Cooperative Development Authority (CDA), a stock corporation under the Securities and Exchange Commission (SEC) or to remain as non-stock, non-profit cooperative under the supervision of the National Electrification Administration (NEA).
Beneco general manager Gerardo Verzosa urged consumers to participate in this endeavor.
To ensure maximum participation, Verzosa said the regular polling centers used during elections for their board of directors would be increased for the referendum, which requires a quorum of 50 percent plus one of their total membership, numbering to about 98,000.
Requests have been made for NEA to lower the quorum requirement on claims that 50 percent of 98,000 members is almost impossible to attain.
But Verzosa, in a press conference last Thursday, said the appeal was not granted. Quoting the NEA's reasons for the denial, he said conversion is a major move, and that the decision should involve the majority.
The NEA formulated the guidelines for the conduct of a referendum for electric cooperatives who decides to change their status.
