ERC taps third party to audit electric cooperatives’ funds

Accounting and auditing firm Reyes Tacondong & Co. will undertake the audit of the country’s electric cooperatives (ECs) and their utilization of the funds approved by the Energy Regulatory Commission (ERC).

The Energy Regulatory Commission (ERC) on Wednesday announced it has engaged the services of a consultant to audit the Reinvestment Fund for Sustainable Capital Expenditures (RFSC) of ECs in compliance to its rules.

The ECs were authorized to collect members’ contribution for capital Expenditures (MCC), otherwise known as the RFSC, from its member-consumers.

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’ RFSC will establish whether the ECs’ collection and disbursements thereof indeed benefitted the consumers,” said ERC chairman and CEO Agnes Devanadera.

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