ERC taps consultant for RFSC audit
By Lorenz S. Marasigan – January 21, 2021
from Business Mirror
The Energy Regulatory Commission (ERC) said on Wednesday it is auditing the Electric Cooperatives’ (ECs) collection and utilization of the Reinvestment Fund for Sustainable Capital Expenditures (RFSC).
Agnes Devanadera, the commission’s chairperson and CEO, said the audit will confirm if ECs are following the Rules for Setting Electric Cooperatives’ Wheeling Rates (RSEC-WR).
“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,” she said.
Reyes Tacondong & Co. was tapped for the audit.
To recall, ECs were authorized to collect members’ contribution for Capital Expenditures (MCC), otherwise known as the RFSC, from its member-consumers in compliance with a 2009 ERC resolution.
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 expenditures plan.
Devanadera said the audit will 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,” she said.
