Republic of the Philippines

ENERGY REGULATORY COMMISSION

A world class and independent electric power industry regulator that equitably promotes and protects the interests of consumers and other stakeholders, to enable the delivery of long-term benefits that contribute to sustained economic growth and an improved quality of life.


ERC Puts EC’s RFSC Collection & Utilization Under Audit Lens

The Energy Regulatory Commission (ERC) resolved to put the Electric Cooperatives’ (ECs) collection and utilization of the Reinvestment Fund for Sustainable Capital Expenditures (RFSC) under audit lens to confirm if the same has been done in accordance with the requirements of the Rules for Setting Electric Cooperatives’ Wheeling Rates (RSEC-WR) promulgated by the ERC.

“We have engaged the services of a Consultant which has the technical expertise and capability to audit the utilization of the Reinvestment Fund for Sustainable Capital Expenditures or the RFSC.  In fact, the bidding process has been completed and the contract has been awarded to the winning bidder,” said ERC Chairperson and CEO Agnes VST Devanadera.

The Commission has approved the award of the Contract for the “Procurement of Consulting Services for the Audit of the Utilization of the Reinvestment Fund for Sustainable Capital of the Electric Cooperatives” to Reyes Tacondong & Co. which submitted the Highest Rated and Responsive Bid.

The Electric Cooperatives (ECs) were authorized to collect Members’ Contribution for Capital Expenditures (MCC), otherwise known as the Reinvestment Fund for Sustainable Capital Expenditures (RFSC), from its member-consumers in compliance with ERC Resolution No. 20, Series of 2009.  The RFSC is envisioned to fund the amortization or debt service of the ECs’ indebtedness associated with the expansion, rehabilitation or upgrading of the existing electric power system of the ECs in accordance with their ERC-approved Capital Expenditure (CAPEX) Plan.

The ERC sought the assistance of a Consultant to conduct an independent audit and verification of the ECs’ RFSC in order to complement the agency’s evaluation efforts on the said electric bill component.  

“We are duty-bound to promote and protect the consumers’ interest and the impending audit of the ECs’ Reinvestment Fund for Sustainable Capital Expenditures or RFSC will establish whether the ECs’ collection and disbursements thereof indeed benefitted the consumers,” ERC Chair Devanadera added.

 


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