ERC orders Camiguin, Bukidnon ECs to stop additional charges

MANILA, Philippines — The Energy Regulatory Commission has ordered the electric cooperatives (ECs) serving Camiguin and Bukidnon to stop collecting additional charges for their capital expenditures (capex) until they have complied with its directives.

In separate orders, the ERC directed Camiguin Electric Cooperative Inc. (CAMELCO) and Bukidnon Second Electric Cooperative Inc. (BUSECO) to cease from collecting any additional reinvestment fund for sustainable capital expenditures (RFSC).

This is due to the ECs’ pending compliance with the regulator’s directive to submit an update on their respective RFSC collection as approved by the ERC.

The RFSC is envisioned to fund the amortization of 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 capex plan.

“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 P0.5324 per kilowatt-hour (kWh), while BUSECO’s RFSC shall be pegged at P0.2508 per kWh until further notice of the commission,” ERC chairperson and CEO Agnes VST Devanadera said.

CAMELCO has yet to submit a third-party audit report with respect to the additional RFSC rate that is being collected from member-consumers. It has also yet to submit an update of its capex projects, including sufficient justification for each project and an update on its RFSC collection as approved by the commission pursuant to the rules for setting the electric cooperatives’ wheeling rates.

Meanwhile, BUSECO has already complied with the submission of its third-party audit report concerning the collection of additional RFSC 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 third-party audit report, particularly from August 2014 up to present, and an update on its RFSC collection.

“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,” Devanadera said.

ERC tapped Reyes Tacondong & Co. to conduct an independent audit and verification of the ECs’ RFSC to complement the agency’s evaluation efforts on the electric bill component.