Question & AnswerQ&A (DOE DEPARTMENT CIRCULAR NO. DC2014-01-0002)
Under Section 16 of Republic Act No. 10531, the DOE is tasked with formulating the Implementing Rules and Regulations (IRR) of the National Electrification Administration (NEA) Reform Act of 2013.
A member in good standing is defined as one who has no unsettled or outstanding obligations to the cooperative during their membership, whether personal or through commercial or industrial connections. Outstanding obligations must be settled within seven days after due date or, in the case of power bills, within nine days from receipt.
The person must be a member of the EC in good standing for the last five years immediately preceding the election or appointment and must continue to be a member in good standing during their incumbency.
They must continue to possess all the qualifications and none of the disqualifications throughout their term or tenure of office, or else they shall not be allowed to stay in office even in a hold-over capacity.
The continuing qualifications do not apply to the General Manager, Project Supervisor, and/or Independent Director.
At least ten days before the scheduled meeting, all bona fide member-consumers must be notified through print and broadcast media; complete information must also be posted in conspicuous places like municipal and barangay halls, churches, public markets, and mailed to local chief executives including barangay chairmen.
The plurality of the total votes of bona fide member-consumers attending the meeting shall be considered a valid decision for conversion.
A bona fide member-consumer is a member-consumer in good standing who has met all requirements set within the EC's by-laws and is included in the Master list of voters, having voting rights under the one-member, one-vote policy of the EC.
Within two years from the publication of the amendments, the NEA shall conduct referendums for all remaining non-stock ECs to decide whether to remain as non-stock nonprofits, convert into stock cooperatives under the CDA, or convert into stock corporations under the SEC.