Interest on share capital deducted from June 2024 electric bill

Interest on share capital deducted from June 2024 electric bill

By Laarni Ilagan

The member consumer owners (MCOs) of the Benguet Electric Cooperative (BENECO) who have fully paid the required minimum share capital of P2000 as of August 31, 2023, will enjoy a reduction of their bill this June 2024 as the interest earnings of their share contribution will be used to pay a part of their bill.

Cooperative officials called the interest to be credited in their power bills an “advance payment” at the average of P0.33 centavos. The interest came from interest of the share capital which BENECO deposited or invested with a bank that guaranteed a premium yield account.

About 1,905 MCOs will enjoy the cash advance by paying less this June 2024 billing period as a result of their share from the interest earnings, amounting to a total of P171,386.

MCOs will see a line item that says “advance payment (SC)” on their bills to distinguish it from the usual advance payment made by consumers when they decide to pay in advance a portion of their monthly consumption. The SC means share capital.

Those who paid more than P2000 will enjoy a higher “advance payment.” This will hold true also for those who paid the share capital at an earlier date.

MCOs who have yet to pay the P2000 will not be credited with the cash advance. They will enjoy the benefit once they have paid the required minimum share capital.

The interest to be credited as “advance payment” was earned from the deposited share capital from September to December 2023, a move that the BENECO Task Force approved in a resolution.

The National Electrification Administration (NEA) approved the measure, Resolution No. 2024-64 (Resolution Approving the Declaration and Distribution of Power Subsidy to Members who Paid their Share Capital), which the Task Force passed on April 26, 2024.

The power subsidy referred to in the resolution was changed to “cash advance” to set for the record that interest actually came from the money of the MCOs and not from other parties.

“The computation will depend on the amount subscribed share capital contribution as well as the duration of the time that they have paid their share capital contribution,” Fraiser Angayen, non-network services department manager, said.

“This advance payment” will be applied one time and not on a monthly basis, Angayen clarified. # LSI