"We urge consumer-members of coops to help us monitor the compliance of their respective coops to the established rules. Their vigilance will prevent anomalous transactions from taking place," ERC chairman Manuel Sanchez said.
ERC presently authorizes ECs to collect a reinvestment fund of five percent of the basic rate from its member-consumers.
Sanchez’s call came amid apprehension raised by the National Association of Electricity Consumers for Reform (Nasecore) on the possible misuse of the reinvestment fund.
Nasecore president Pete Ilagan said there is a need to audit the already growing fund. As an example, Leyte Electric Cooperative II has a reinvestment fund amounting to P50 million.
Sanchez said since the Commission recognizes the need for ECs to generate funds for capital-intensive expansion and operations, it is imperative that the fund should be used properly.
"The purpose of the funds is specific and there are guidelines for its disbursement," Sanchez said.
The ERC chief noted that ECs are non-profit power utilities that are granted revenue-neutral rates by ERC.
As such, Sanchez said these establishments rely heavily on the reinvested funds to sustain a viable operation. Said funds are augmented by loans granted by various institutions including government.
"It will be more harmful to the ECs to be left without funds to meet contingencies such as power shortages. Financial resources must also be readily available to fund long-term expansion plans," Sanchez said.
National Electrification Administration (NEA) administrator Francisco Silva had told the STAR that the fund has been undergoing thorough review.
"We have been auditing these funds. It cannot be audited by COA (Commission on Audit) since these are privately-owned" Silva said.