ERC Orders 2 ECs to Stop Additional Collection of RFSC
In separate Orders issued to Camiguin Electric Cooperative, Inc. (CAMELCO) and Bukidnon Second Electric Cooperative, Inc. (BUSECO), the Energy Regulatory Commission (ERC) recently directed the said Electric Cooperatives (ECs) to cease from collecting any additional Reinvestment Fund for Sustainable Capital Expenditures (RFSC). The ERC Orders were issued pending the ECs’ compliance with the regulator’s directive to submit an update on their respective RFSC collection as approved by the Commission.“In view of the said directive of the Commission to cease the collection of any additional RFSC, CAMELCO’s RFSC rate shall be pegged at PhP0.5324/kWh, while BUSECO’s RFSC shall be pegged at PhP0.2508/kWh until further notice of the Commission”
, ERC Chairperson and CEO Agnes VST Devanadera said.
The ERC, upon review of its records, found that CAMELCO has not complied with the Commission’s directive for it to submit a Third (3rd) Party Audit Report with respect to the additional RFSC rate that is being collected from its member-consumers. In addition, CAMELCO was also directed to submit an update of its Capital Expenditures (CAPEX) projects, including sufficient justification for each project, and an Update on its RFSC collection as approved by the Commission pursuant to Resolution No. 20, Series of 2009 or the Rules for Setting the Electric Cooperatives’ Wheeling Rates (RSEC-WR).
Meanwhile, BUSECO has already complied with the submission of its 3rd Party Audit Report concerning the additional RFSC collected by it for the period from August 2011 to July 2014. Hence, BUSECO was directed to submit to the ERC its Update on the additional RFSC collected after the period covered by the 3rd Party Audit Report, particularly from August 2014 up to present, and an Update on its RFSC collection as approved by the Commission pursuant to the RSEC-WR.“The Commission will not tolerate any stakeholders’ non-compliance of our directives. We will closely monitor the respective compliance of CAMELCO and BUSECO on the submission of the required documents. Their failure to comply with the said directives shall constrain the Commission to impose the appropriate sanction/s, if warranted”
, ERC Chair Devanadera added.