Why do consumers have to pay Share Capital?

(1)The payment of share capital is normal for members of a cooperative. A person who wants to become a member of a cooperative must pay his share to enable the cooperative to run its business and operations.

A cooperative is a voluntary association of members who are willing to share their capital to a common fund to be used for the business of the cooperative and divide the profits later.

(2)As members of BENECO, which is an electric cooperative, we, as consumers, must therefore pay our share capital. If you want electricity, you must become a member of BENECO. Therefore, when you become a member, you must pay your share capital.

(3)Why only now? Yes, we did not pay any share capital before because we were a non-stock and non-profit electric cooperative. But the MCOs voted during the June, 2019 AGMA that we will register with the CDA. We already registered and under RA 9520, when you register with the CDA, it means that:

1. First. BENECO will become a stock cooperative. The stocks are made as shares which every BENECO member must subscribe to. The subscription of shares or payment of share capital is thus mandatory for an electric cooperative registered under the CDA as provided in RA 9520.
2. Second. For the existing members of BENECO, they must now pay the share capital. For new applicants for electric connection, they will also have to pay share capital once they become members.
3. Third. The monthly electric bill is separate from the share capital. The bill is your monthly consumption. The share capital is for you being a member of the electric cooperative. You cannot therefore avail of electric connection if you will not become a member and pay share capital.

(4)For what is the capital share for? It will be used as a capital or fund of the electric cooperative for its business. The Board of Directors will later decide what these businesses will be. Your share capital will be considered as your investment or contribution to the common capital fund of BENECO. If later, we will earn profit from such operations, then BENECO will distribute to you your dividends.

(5)Can the member withdraw the share capital? Yes, if the member will decide to terminate his or her electric connection and cease to become a member of BENECO.