A consolidated Public Utilities Commission (PUC) bill which replaces the Public Utilities Commission Act to cater for changes as a result of the passage of the Telecommunications bill, was passed by the National Assembly on Monday.
“This bill achieves harmonisation with the Telecommunications bill…of 2016 without disturbing existing harmonisation with the Electricity Sector Reform Act and any other laws governing public utilities under the PUC’s jurisdiction,” Minister of Public Telecommunications Cathy Hughes said in piloting the legislation in the House. PPP/C speakers called for the bill to be sent to a special select committee but the government used its majority to approve the legislation.
Hughes said originally the provisions that are required to complement the Telecommunications bill were prepared as yet another amending Bill to the PUC Act. The government, however, formed the opinion that it would be cumbersome for persons having to read the PUC Act to have to refer to the principal PUC 1999 Act along with three Amending Bills. As such, she explained to the House, it was decided to prepare a consolidated PUC Bill that incorporates the PUC Amendment Acts of 2003 and 2010 and the new provisions relating to the telecommunications sector into the principal PUC 1999 Act, thus creating the new consolidated PUC Bill.
These new provisions provide for “Telecommunications undertakings” – which is any entity subject to the new Telecommunications Act and regulations – being removed from provisions of the PUC Act as a public utility and being regulated in accordance with the provisions set out in the sector-specific Telecommunications Act/regulations.
“Under this bill, the PUC will continue to function as the economic regulator of the telecommunications sector, with responsibility for ensuring a competitive environment, seamless interconnection and access between and among telecommunications networks, and price regulation only where required to protect consumers and competition, with the expectation of greater choice, better service quality and lower prices for consumers,” Hughes said.
“The PUC will carry out these functions, however, in a manner that is specific to the proper regulation of an open, competitive telecommunications sector – something that the 1999 Act – which is more appropriate for the regulation of monopolies – did not provide for,” she said.
The minister said that the bill accomplishes this by several means. First, it creates a new definition for “telecommunications undertakings” which will now be a different term from “public utility” used for other utilities over which the PUC exercises jurisdiction. “The new term refers to any operator of telecommunications networks, provider of telecommunications services or other person that is subject to the Telecommunications bill. The bill ensures that only those telecommunications undertakings that, directly or indirectly, provide services to or for the public will be regulated by the PUC,” she said. Hughes also pointed out that the bill ensures that the PUC’s activities with regard to telecommunications are governed by both the PUC Act and the Telecommunications Act. She also said that the bill ensures that the PUC’s functions in areas of rate-setting and regulating service quality are governed by the Telecommunications Act rather than by the provisions of the PUC Act.
Further, the bill provides that the PUC will be required to give effect to the terms of a licence issued to a telecommunications undertaking and any agreement between the Government and a telecommunications undertaking.
Interest
Other telecommunications sector related amendments include a clause that seeks to ensure that the rate of interest on customers deposits that a telecommunications operator or service provider is required to pay is based on a formula that is fair and consistent with practice in the commercial sector. For this purpose, the interest rate is proposed to be changed from an annual compound rate of 8% to a rate that is equivalent to the average Treasury bill rate for the preceding 364 days.
The minister said there is also a provision that ensures that the annual assessment to be imposed on telecom operators and service providers is based on the same formula that applies to the annual assessment imposed on electricity companies that fall under the jurisdiction of the PUC, that is, a rate of 1% of the gross revenues derived from services or $100 million, whichever is less.
“I wish to say that the bill is sound and reflects international best practices. The new telecommunications sector related provisions in the Bill along with the Telecommunications Bill will clearly set the environment for bringing Guyana to a new exciting frontier – one of full effective participation into the global information age and one that sets us ready to significantly closing the digital divide within Guyana and between Guyana and the developed world,” Hughes declared.
Part 1 of the bill, establishes that the Act applies to public utilities engaged in providing service in relation to the production, generation, storage, transmission, sale and delivery of electricity. This part also states that the act applies to telecommunications undertakings and other services such as airline services, cargo handling, water supply services and sewage services.
Part 2 of the bill establishes that the Commission shall be a body corporate comprising five members including a chairman, who shall all be appointed by the minister from among persons of integrity and high character and qualified with relevant expertise. Part 3 of the bill provides for the hiring of staff while Part 4 provides for the budget.
Part 5 sets out the specific functions of the Commission. It states that the Com-mission shall carry out the regulatory, investigatory and enforcement and other functions conferred on it by this Act or any other law and in doing so, the Commission shall be bound by and give effect to the provisions of the Electricity Sector Reform Act, the Telecommunications Act and any other law governing a public utility or a telecommunications undertaking subject to the Commission’s jurisdiction. The Commission shall also act in an advisory capacity to the minister on public utilities and telecommunications undertakings and may conduct investigations in relation to any public utility or telecommunications undertaking.
Part 6 addresses service and facilities and requires that every public utility shall maintain its property and equipment in such condition as to enable it to provide service to the public that is safe, adequate and efficient. The Commission is empowered to conduct hearings on complaints regarding the quality of service provided by a public utility and may by order determine and prescribe the adequate and efficient service to be provided by the public utility.
Part 7 of the Bill deals with the expansion and development of facilities and services of public utilities while Part 8 deals with rates and provides that every rate made by any public utility shall be just and reasonable and in conformity with any written law. In determining the rate to be charged by a public utility for any service the Commission shall have regard to consumer interest, investor interest and to the rate of return obtained in other enterprises. Rates charged by a public utility shall not be unduly preferential nor discriminatory. The Commission may fix a uniform rate to be charged from all consumers throughout Guyana, even though the cost of providing service in any area is different from the cost of providing service in any other area of Guyana.
Part 9 addresses other regulatory provisions including the issue of securities while Part 10 addresses the procedure to be followed in relation to a complaint made under this Act. Part 11 deals with funding of the Commission while Part 12 deals with enforcement orders. Part 13 deals with offences and penalties. Conviction of failure to obey an order of the Commission by a public utility carries a fine of not less than $2 million nor more than $3 million. Part 14 deals with review and appeal while Part 15 deals with miscellaneous matters. It states the duty of a public utility or telecommunications undertaking to co-operate with the Commission and to furnish information to the Commission. The Commission shall on or before 31st March in each calendar year make to the Minister a report of the preceding year showing all applications and complaints, summaries of the findings, and accounting of the funds received by the Commission and the report shall be laid before the National Assembly.
