THE National Electrification Administration (NEA) is looking at issuing a policy that will serve as an investment guide for electric cooperatives (ECs), a recent memorandum posted on its website said.
The memo, signed by NEA Administrator Edgardo R. Masongsong, said the agency’s board of administrators decided to come up with the proposed policy identifying investment ventures for ECs, while detailing the rules for cooperatives’ investment plan preparation.
The draft policy allows ECs to conditionally become members of other ECs or corporations, and own stocks. NEA also suggested that all investments of the cooperatives will need to secure prior approval from the agency, as well as auditing.
The agency said it is looking at allowing ECs to invest in power generation and network facilities, banks and other financing institutions, programs of ECs, companies registered with the corporate regulator, and other investments that will benefit their member-consumer-owners.
“Because of the ECs’ nonprofit nature, cooperative character and the heavy financial burdens that ECs must sustain to become effectively established and operationally viable, ECs should manage its investment portfolio necessary to support the implementation of its programs and activities,” NEA said in the memo dated July 9.
NEA has asked stakeholders and industry players to e-mail their views, comments and recommendations on the draft policy to ecinvestmentconcerns@gmail.com by July 24. — Angelica Y. Yang