What is bad is the dominant Capitalist culture in our system — that has greater influence in the coop managerial staff, politicians, member-consumers, policy-makers, including the consultants who adheres for PRIVATIZATION (would mean conversion of EC).. to serve the PROFIT interest of the corporate entity….

The capitalist culture is a bad symptom in our economy… PROFIT MOTIVATION as they think is a normal firm business.

Capitalist culture is destroying our moral fabric in society.

The owners are the consumers. That label not-for profit is used simply as a label. Coops are for the exclusive benefits of its members. Not for the general public.

Private juridical entities organized for profit are another matter altogether. It is intended to benefit the owners/stockholders in providing goods or service to the public at large naturally for a profit. It is not even mentioned in the charter of the corporation. It is a given.

The transmission company and the private generating companies do not like the idea of electric coops since they have an indirect government subsidy which the big boys would like to monopolize.

There is no private utility in this country that has an obvious natural monopoly that operates solely and exclusively with private capital.

None!!!!They are all subsidized one way or another.

The facts on the ground on electric coops is that they always lose money since the deregulation of prices have led to more defaults on payments of electric bills.

Hence they get always a continuing subsidy from the government and they are always in the red.

Plus the big boys would like to run them over and take over their business since those that pay higher prices for higher consumption subsidize those with lower consumption in the public arena.. Plus the big boys can always cut off people electricity.

Since the big boys here are consolidating ownership of power in the country the electrical coops stand in their way.

All strategic sectors of the economy like banking and other public utilities have a direct and indirect subsidy form the taxpayer.

The term privatization rings hollow today in the midst of the ongoing financial crisis.

Also it is not true that not for profit groups cannot access loans. They can and do.

When the job is about servicing people, one’s pride must be separated by the actual job description. Improvement of skills and talents are dependent on feedback from others. At personal level, we filipinos are good in reaching out to our families and friends in times of trouble. Why can’t we apply our attitude to the real world of public management? The real foundation of the filipino people might have been abandoned at the political level ( morality issue). Accepting to correct and listening for feedbacks are the best strategies for this country.

It can be a standard reaction because until now the Philippines is a mess, don’t you think? I may probably change my opinion only when our people are totally free and happy. As of the moment, we all know we are very unhappy the way officialdom works. Obviously, there’s a big difference between good governance and bad governance. The world bank assessment cannot be ignored.

It can be a standard reaction combine with blame game.

” who are you by the way to tell me what to do”. Or ” get out of the Philippines”.

You are stating that the above is the standard reaction.

Not really. That reaction comes whenever the People are lectured and “scolded” by the so-called experts, know-it all.

Just like what others do.

Why can’t public officials accept its fault and correct its wrong strategies. Decision making should be based according to their relationship with people. It’s a bilateral agreement to provide social harmony and practice social responsibility. They should act like the managers of the 20th century acceptable enough in the global world.

Private entities in this country are also known for paying bribes or gifts to influence policy making. This may be acceptable with full disclosures only. It should also be highly regulated thru its appropriateness, consequences and impact to people.

Problems are manageable and cannot be ignored because of some ignorant excuses.

Taxation on EC’S is not the only factor on electric distribution cost. It can be a part of the cost. It’s driven by market forces, supply and demand. People demand on lower cost and businesses demand on lower taxation can be manageable thru policymaking and finding solutions in a timely manner.

Electricity is a commodity. Like Rice, Fish and Poultry , it is also the people’s basic needs.

Electricity is also the most basic necessity for every business owners , small business, medium and large. Efficiency and low cost can spur economic growth. Try opening a small business without electricity? The businesses will have difficulties from succeeding.

The government must create competition thru privatization of other suppliers and allow the “opening up” of other strategies to cut prices and to supply consumer’s demand. In our country, there’s no proper regulation and the result is MONOPOLY. Supply chain and distribution based on good practices is not present. It can also be the lack of Managers understanding.

Non profit org are tax at 10% and profit org are tax at 35%. In coop, individuals are taxed from income derived from coop dividends or profit sharing.

Profit and Surplus are two different words for the same thing.

The problem is that in the Philippines I hear way to often that ECs aren’t permitted to earn a profit.

I’m trying, not very effectively apparently, to make the case that that too-widely-held misperception has serious detrimental repercussions. And I’m furthermore trying to make the point that focusing on the characterization of ECs as not-for-profit simply fosters that misperception.

Now you are welcome to disagree about the “serious detrimental repercussions” but that is my argument.

1) you say EC aren’t taxed because they are not for profit
2) then you say that is a misnomer — there are profits, but they go to the consumer or to investment.
3) then you say this misclassification is

dangerous…

why? because the sector will be dismantled/privatized… ?

then you say:it’s a sophistically specious concept that leads to bad regulation, bad credit, bad management, bad policy.

whats the “it’s”? privatization? the misclassification?

The difference between the revenue and the expenses in a profit organization is called PROFIT.

The difference between the revenue or sources of income of non-profit and its operating expenses is called SURPLUS.

A non-profit is not prevented from operating with a surplus, neither it is prevented from acquiring assets which can serve as collateral when it secures a loan.

Cooperatives can be private or government-owned.
Whatever surplus generated is returned to members as refunds to rebates.

The commercial bank analyst should not evaluate the loan thru the profitability of the project where loan is intended. IT could be the savings generated from the project of capital expansion.