Explaining Misconceptions about the OUR

The Office of Utilities Regulation (OUR) sometimes comes under public scrutiny for issues that are perceived to be a part of its portfolio.

We welcome all feedback and usually try to provide direct responses to those that allow us to further educate stakeholders about what we do. In this article, we will explore a few of such misconceptions, but first, mention some of what we do.?

• We set the rates for the Jamaica Public Service Company Limited (JPS) and the National Water Commission (NWC) and small water.
• ?In the case of the telecoms providers, we set the rates to terminate calls on the next network. These are called Fixed or Mobile Termination Rates.
• We monitor the quality of service provided by JPS, NWC, and small providers. We are in the process of finalizing those for the telecoms providers.?
• We accept and process licences for utility services and, following our due diligence, we make recommendations to the respective Minister regarding whether or not a licence should be awarded.
• We conduct detailed investigations into utility complaints that especially impact a wide cross-section of customers.
• Customers who make a complaint to their utility provider and are not satisfied with the decision, can make an appeal to the OUR, and?
• We act as an advisor to the government on utility matters.?

So, what don’t we do?

We get complaints about bank fees and services, cable television, problems returning defective goods to a clothing or furniture store, taxi fares, among others. However, we do not regulate any of these services. Regarding taxi fares, we ceased regulating the transportation sector in 2014 through a change in the OUR Act. We hear the calls for it to be returned to our portfolio, but for now, we only regulate electricity, water and sewerage and the telecommunications sectors. Cable services are regulated by the Broadcasting Commission, the banks are regulated by the Bank of Jamaica, and complaints about merchandise, etc., can be addressed by the Consumer Affairs Commission.

The CAC and the OUR: What’s the Difference?

The Consumer Affairs Commission is a consumer advocacy body. It was established to inform, educate and empower consumers to protect themselves in the marketplace. The nature of the complaints they receive is broad and sometimes includes utility matters. Based on a Memorandum of Understanding we have with them, the CAC will forward any technical utility complaint as we have the expertise in-house to assist in addressing those matters.

On the other hand, the OUR’s Consumer Affairs Unit primarily focuses on handling appeals and complaints on utility matters. Appeals pertain to matters that would have been addressed by the utility provider first, but the customer remains dissatisfied. In such a circumstance, the affected customer can file an appeal to the OUR to have us independently investigate the matter. In short, our only focus is on utility matters, whereas CAC focuses on a broader range of complaints.?

The OUR is a quasi-judicial body, meaning we must make decisions as a judge or court would do by reviewing the facts. As such, the OUR is obliged to make objective decisions based on technical, economic and legally sound reasoning.

Does the OUR grant licences?

As part of its regulatory remit, we receive licence applications from entities interested in providing services in the water and sewerage and telecommunications sectors.

The OUR processes these applications and conducts its due diligence. This includes ‘fit and proper’ checks on the principals of the company that submitted the licence. We then make our recommendations to the relevant Ministry, which may or may not accept them. It is that Ministry that awards the licence. We do not.

What’s our Role in Renewable Energy?

The OUR is very supportive of the national thrust to achieving the national goal of increasing the percentage of renewables in the energy mix to 50% by 2030 and has done much work over the years in furtherance of this. Under the provisions of the new Electricity Act of 2015, the Generation Procurement Entity (GPE)?now has the?responsibility to manage and administer the process for the procurement of new generation capacity by independent power producers for the sale of electricity to JPS. This includes the procurement of renewable energy capacity.

Therefore, the OUR no longer carries out this function unless requested to do so by the Cabinet.

Before this change, we successfully carried out the procurement of 125 MW of wind, solar, and hydro plants and were requested to procure 37 MW of renewable energy capacity, which resulted in the lowest cost renewable energy project in the system. This achievement helped to double the percentage share of renewables in the generation mix. We will continue to provide any assistance required to help us meet our target.

We are always happy to further clarify any matter pertaining to the work we do, or don’t do! Drop us a line at: [email protected].?

Written By Elizabeth Bennett Marsh, MBA

Elizabeth Bennett Marsh is a communications professional. She started as a journalist in 1995 and served over seventeen years in various capacities, including as a reporter, broadcaster, producer, editor, and programmes manager, before transitioning to Corporate Communications in 2012.

Liz is currently the OUR’s Public Education Specialist, where she manages the Public Affairs Unit and has led several national public education initiatives. Connect with Liz on LinkedIn to learn more about her work.