As Parliament approves the legislation
The Public Utilities Commission (Amendment) Bill 2010 was passed in the National Assembly, yesterday, after being presented by Prime Minister Samuel Hinds, with support from Minister of Labour Manzoor Nadir.
It essentially aims at having a fair public utilities legislation in place in the interest of the Guyanese people. The Bill amends the Public Utilities Commission Act of 1999, the Principal Act, in order to provide for greater transparency in the appointment of Commission members and the Commission’s retention of external experts, to enhance the Commission’s powers to resolve consumer complaints, to increase the caps on the Commission’s annual and other assessments upon electricity utilities, and to increase penalties for violation of the Principal Act.
The Opposition side of the House argued that the Bill, which is intended to improve provisions made under the Principal Act of 1999, does not adequately address, in particular, transparency and autonomy.
However, Nadir countered this theory and pointed out the specific areas that do address transparency and autonomy.
People’s National Congress Reform (PNCR) Member of Parliament Basil Williams said the Amendment is vague with its reference to consulting with the relevant parties before the appointment of members of the Commission.
He noted that specific identification of the parties to be involved in the consultation process will lend to transparency of operations.
Nadir returned that the problem with identifying particular groups is that over time they may become unrepresentative of the stakeholder majority, unrepresentative of the sector.
The Labour Minister maintained that the general objective is to ensure that people have a say in the affairs of the country.
He said William’s argument “does not hold any particular water” and the Amendment goes much further that the 10-year-old Act.
Williams also pointed out that in other countries, in this case Belize, a similar bill made it clear that the Commission there is autonomous and no government minister or President can wield its powers in the face of the Commission.
The Labour Minister pointed out that his colleague Member of Parliament failed to do adequate research and overlooked the fact that the initial Principal Act addresses clearly the issue of autonomy.
While the word autonomy is not expressly used, the general phrasing that is part of the act conveys the message of autonomy, in other words independence or self-sufficiency.
“I do not know that the Belizean system is far superior to what we have here,” Nadir said.
The Labour Minister said the Amendment that is being tabled is both progressive and well informed.
He urged the Opposition side of the House to “disabuse” themselves of the notion that the current administration will bring to the National Assembly legislation that is injurious to the Guyanese people.
The issue of consumer complaints, while raised by Williams, was reiterated by Alliance for Change representative, Mrs. Sheila Holder.
She questioned the four month period that is dedicated to having consumer complaints resolved.
The Prime Minister responded to this and maintained that the four month period is a maximum time-frame to allow for complicated investigation.
He observed that the resolution of complaints is expected to be completed in less time.
Hinds said the government has been taking several steps to enhance the power sector and the Amendment will serve to introduce policy into law.
The Prime Minister explained that the Bill basically puts systems in place to have administrative practices to now be required by law.
There are essentially 13 clauses that constitute the Amendments made to the Principal Act.
Clause One sets out the short title of the bill. Clause Two amends section five of the Principal Act to require the Minister to consult with relevant organisations prior to appointing the Chairman and other members of the Commission and to take the views of such organisations into account in making such appointments. Clause Three amends section 17 of the Principal Act to clarify that the Commission shall be subject to the Procurement Act 2003 in retaining experts. Clause Four amends section 52 of the Principal Act to empower the Commission to issue orders resolving consumer complaints within 120 days, four months, of the filing of a complaint and to make such orders binding upon consumers as well as public utilities. Clause Five amends section 59 (5) of the Principal Act to require the Commission to serve orders to resolve consumer complaints upon the relevant consumer and public utility. Clause Six amends section 64 (2) (a) of the Principal Act to increase the cap on the Commission’s annual assessments upon public utilities in the electricity sector from $25M to $50M. Clause Seven amends section 65 (1) (a) (i) of the Principal Act to eliminate the flat amount cap on the Commission’s assessments upon public utilities in the electricity sector for investigations and other proceedings related to rates, and to change the percentage cap from one-half to one-fifth of one per cent of the gross revenues. It amends section 65 (1) (b) (i) of the Principal Act to eliminate the flat amount cap on the Commission’s assessments upon public utilities for any investigation and other proceeding related to any matter other than rates.
Clauses Eight to 13 amend respective sections 70, 71,72,73,74 and 75 of the Principal Act to establish upper and lower limits to the penalties for violations of the Principal Act, and to increase the upper limit of such penalties.
According to the Prime Minister this can total $2M and can go higher.
Hinds said the Public Utilities Commission (Amendment) Bill 2010 will enhance the sector.