MAGALONG URGE BANAAG, LICOBEN TO ENSURE PAYMENT OF MONTHLY DUES TO ENSURE POWER SUPPLY

February 13, 2022 Headlines

Mayor Benjamin Magalong told the two contenders for the leadership of the Benguet Electric Cooperative and all depository banks to enter into a financial risk arrangement that will assure that the electric cooperative will be able to pay its monthly obligations including power suppliers so as not to risk disconnection of power supply or service interruption of its member-consumers.
In a statement recently, Magalong suggested that the parties should enter into an escrow agreement, wherein “the monthly consumer payments may not be withdrawn by BENECO, instead, the banks shall directly remit payments to power suppliers and third-party providers,…”
This the mayor said will assure “that BENECO’s monthly obligations are settled on time, and thereby averting the risk of disconnection of
power supply or interruption of service.”
While noting that BENECO has a gold standard among electric cooperatives, he called on both camps of lawyer Marie Rafael – Banaag and Melchor Licoben and the depository banks, “to make a proactive decision now for the interest and benefit of BENECO as an institution, and as an indispensable provider to the many houses, establishments and communities that depend on continuous electricity services.”
The mayor made the call even as BENECO needs to settle the ongoing leadership crisis that endanger its “ability to perform as an efficient and viable institution.”
Magalong, in his message said: “We must ensure that the electricity services of BENECO are uninterrupted amidst the ongoing conflict.” Magalong further said the BENECO “operates on a cash flow-based regulation where sustainability is anchored on timely and adequate collection of electricity bills from member consumers every month.”
The collections, Magalong said, is used to pay government imposed taxes and dues and to settle obligations to power suppliers, transmission providers, lenders and universal charges. Magalong further said that there should be “funding in order to operate, and it must operate effectively to provide the services that we consumers gave come to expect.”
However, the leadership crisis have left consumers confused on “whom the contending parties is the proper and legal authority to manage BENECO, including its funds.”
Banaag was appointed by the National Electrification Authority as BENECO’s general manager, however, majority of the cooperative’s board chose Licoben, who was named assistant general manager and officer in charge when the late GM Gerardo Verzosa became ill.
Pigeon Lobien/ABN