The proposed amendments to the Central Negros Electric Cooperative by-laws as it transitions from a distribution utility into an asset management corporation will be subject to the approval of the Energy Regulatory Commission and the ratification of the CENECO members, its acting general manager Arnel Lapore said Friday, August 28.
The amendment of CENECO’s by-laws and the manner in which future dividends will be distributed to its about 220,000 members were tackled at a consultative meeting at the Acacia Hotel in Bacolod City.
CENECO had previously entered into a Joint Venture Agreement (JVA) with Negros Electric and Power Corporation (NEPC).
Under this agreement, NEPC acquired CENECO’s distribution assets and paid 70 percent in cash and 30 percent in shares of stock, Lapore said.
Since CENECO retains a 30 percent equity stake, NEPC is expected to start paying dividends to the cooperative in two years when it starts making a profit, Lapore said.
NEPC is currently plowing back its resources into rehabilitation work, so no dividends have been paid to CENECO yet, he explained.
“Our primary objective is to distribute these financial benefits to our member-consumers as equitably as possible. To achieve this, CENECO requires a functional operational platform suited to its evolving role,” he said.
The CENECO management and the Board have drafted a proposed business model that will include inputs from the consultative meeting that will be subject to NEA approval. This will form part of the proposed amendments to CENECO’s Constitution and By-laws — all of which will ultimately be presented to the general assembly for ratification, Lapore said.
There was a suggestion that the draft of the proposed by-laws be translated into Ilonggo so it can be cascaded to all consumers, he added.
Once the by-laws are ratified, an election of the CENECO board of directors will be held, Lapore said.
On the manner of the election of the members of the CENECO board, some want it done at-large while others want it done by district, which will be considered, Lapore said.
In general, the interaction at the consultative meeting went very well, he said.
Dwight Carbon, CENECO president, in his speech said, “We are here not only to discuss a proposed change in the structure of our electric cooperative, but more importantly, to discuss the future of an organization that belongs to all of us.”
“Member-consumers are not simply customers—they are the owners and stakeholders of this organization,” he said.
The purpose of the consultative assembly was to listen, exchange ideas openly, and find a fair and sustainable approach that will protect the interests of CENECO’s members, Carbon said.*
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