Sunday, January 10, 2016

PERKS OF CDA ELEC. CO-OPS CITED





A Cooperative Development Authority (CDA)  official has cited the benefits of turning a local power distributor into a cooperative here.



CDA Region 2 Dir. Angelito Sacro told members of the media that power distributors like the Isabela Electric Cooperative (ISELCO)-1 can avail of various benefits under the agency (CDA) should it register itself as such.



"The benefits are comparable to those received by distributors under the supervision of the National Electrification Administration," he said.



CDA held a press conference assisted by the provincial cooperative development office of Isabela to help member-consumers to decide as to whether they will become a cooperative under CDA or not, in a referendum set in January this year (2016).


(Late breaker:  The Regional Trial Court of Cauayan City, Isabela on January 7, 2016 issued a 72-hour Temporary Restraining Order enjoining Isabela-1 Electric Cooperative, Inc., et al, and their representatives from conducting the referendum on the issue of conversion scheduled on January 9, 2016).



The referendum aims to ask the member-consumers if they want the local power distributor to be under the supervision of NEA or the CDA supervision.



Sacro likewise bared the advantages to benefit the media.



Among the benefits include member-owners' contribution to capital build-up, an internally-generated funds for expansion and other capital expenditures; minimal government regulations and interventions; enhanced concern for members, among others.



"CDA-registered co-ops are exempted from paying taxes like franchise; 3% tax under Sec. 116 of the Tax Code of 1997; donors tax; excise tax; documentary stamp tax; and annual registration," Sacro said.



A CDA-registered co-op is also exempted from paying local taxes, such as business tax, and value-added tax.



"Once a local power distributor is under CDA, out from the net surplus, member-owners can have a share on interest in capital; patronage refund; and will have programs to assist its member-owners such as scholarship to members' children; group insurance; mortuary assistance; prompt-payment incentives; and other providential benefits," Sacro said.


By Merlito G. Edale, Jr., PIA
January 05, 2016
(ALM/MGE/PIA-2/Isabela). 

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