House votes to strengthen PUC

The National Assembly last Thursday passed a bill to strengthen the mandate of the Public Utilities Commission (PUC) and provide for greater transparency in the appointment of its members.

The Public Utilities Commission (Amendment) Bill, which was tabled by Prime Minister Samuel Hinds, amends the PUC Act of 1999. According to Hinds, the amendments were necessary as they arose out of previous experiences of putting in place a number of arrangements to the benefit of all relevant parties, including consumers. He said that in crafting the legislation, considerations were also made “to get away” from partisan-type inputs.

Among the 13 amendments made to the PUC Act was an increase in the cap of the PUC’s annual assessments upon public utilities in the electricity sector from $25M to $50M. Additionally, an amendment was made to empower the PUC to issue orders resolving consumer complaints within 120 days of the filing of a complaint and to make such orders binding upon consumers as well as public utilities.

The amendments also included the requirement for the subject Minister to consult with relevant organizations, including consumer groups, the private sector, the legal profession as well as the opposition, prior to appointing the Chairman and other members of the commission and to take the views of such organizations into account in making such appointments.

PNCR MP Basil Williams called for parts of the amendment dealing with the appointments to be more specific. He said the clause was broad and did not identify specific bodies for consultation. He said the provisions needed to specify and identify relevant bodies for the purposes of consultations and he recommended that the provisions be “tightened” to “ensure transparency.”

He explained further that the opposition leader should be the point person to lead consultations, rather than the general term “the opposition” stipulated in the Bill. According to him, “if one were to say how the persons were appointed, the Minister could say he spoke to the relevant people and bypass the relevant people.” Hinds, while addressing the subject, noted that further requirements will be considered.

Labour Minister Manzoor Nadir, meanwhile, noted that the legislation was a vast improvement for the PUC to undertake its mandate in a transparent manner. He said that the issue of specific organizations being given the role to lead a specific group in consultations may not bode well for the group in that the entity may not represent the views of all concerned. Nadir stated that the “rules have been changed” to enable the ordinary consumer to play a role in matters of their concern. He described the legislation as advancement for both consumers and utilities, in terms of how complaints are dealt with by the PUC.

AFC MP Sheila Holder said her party supported the Bill but lamented that another agency is being “commissioned” in the absence of the Public Procurement Commission. She pointed out that the proposed amendments stated that in retaining the services of professional persons to serve as external experts, the PUC shall be subject to the Procurement Act 2003 and relevant regulations.