Comments on: The CASURECO 2 Predicament http://planet.naga.ph/the-casureco-2-predicament/ Aggregation of Everything Naga City Wed, 10 Mar 2010 15:28:05 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Kitkat http://planet.naga.ph/the-casureco-2-predicament/comment-page-1/#comment-355235 Kitkat Fri, 10 Jul 2009 07:19:46 +0000 tag:blogger.com,1999:blog-2433823662409764609.post-808611822784088788#comment-355235 Do you really think your Php 5.00 contribution would sufficiently fund an extraordinary and complicated operation of a distribution utility? May I invite your attention to the misconception that you are injecting. The term Cooperative attached in the name of rural electric cooperatives (REC) was simply used for the lack of proper term to be used by the government. Further, the term Cooperative was used on the premise that RECs were created by way of "COOPERATION" of all stakeholders such as the government and the recipient community and not on your claim that it is absolutely owned by the so-called "members". Try to read thoroughly the relevant rules on this issue for your better understanding. Do you really think your Php 5.00 contribution would sufficiently fund an extraordinary and complicated operation of a distribution utility? May I invite your attention to the misconception that you are injecting. The term Cooperative attached in the name of rural electric cooperatives (REC) was simply used for the lack of proper term to be used by the government. Further, the term Cooperative was used on the premise that RECs were created by way of “COOPERATION” of all stakeholders such as the government and the recipient community and not on your claim that it is absolutely owned by the so-called “members”. Try to read thoroughly the relevant rules on this issue for your better understanding.

]]> By: vincent http://planet.naga.ph/the-casureco-2-predicament/comment-page-1/#comment-355234 vincent Fri, 10 Jul 2009 06:55:11 +0000 tag:blogger.com,1999:blog-2433823662409764609.post-808611822784088788#comment-355234 Well the owners can opt to claim it and convert it into a real cooperative. They can put in stocks (money) and earn dividends (if the cooperative is earning. Problem is, since electric cooperatives are subsidized by the government, that subsidy now stops when it decides to detach from NEA. What happens when Naga is stuck by typhoons? Who will subsidize 48 million (Reming) to rehabilitate the lines? And what happens to fa flung areas which are not fiscally rewarding? Will the cooperative still commit to extend its lines to serve a few consumers, and accumulate line losses. There lies the predicament. If it is up to me, I would turn into privatization, and make this as profitable as Meralco. Well the owners can opt to claim it and convert it into a real cooperative. They can put in stocks (money) and earn dividends (if the cooperative is earning.

Problem is, since electric cooperatives are subsidized by the government, that subsidy now stops when it decides to detach from NEA. What happens when Naga is stuck by typhoons? Who will subsidize 48 million (Reming) to rehabilitate the lines? And what happens to fa flung areas which are not fiscally rewarding? Will the cooperative still commit to extend its lines to serve a few consumers, and accumulate line losses.

There lies the predicament.

If it is up to me, I would turn into privatization, and make this as profitable as Meralco.

]]>