KINGSTON, Jamaica — The amendments to the Office of Utilities Regulation (OUR) Act will facilitate increased investment in the country’s electricity sector and make the entity’s governance structure more transparent and accountable.
This was the word from minister of justice, Senator Mark Golding, in his contribution to the debate on the Bill in the Senate on Friday, which was passed.
He noted that the mechanism used by the OUR to set tariffs has discouraged the levels of investment needed to develop Jamaica’s baseload capacity, which is crucial for the country’s economic development.
“Jamaica needs to attract substantial private sector investment capital, much of it from international investors, to the electricity sector, in order to achieve urgent national priorities on which the competitiveness and growth of the economy depends,” he said.
Describing the OUR governance structure as “outdated,” and “problematic,” Golding said the entity is affected by very limited governance arrangements in “which excessive power is concentrated within an internal bureaucratic structure, which lacks robust checks and balances, and has ineffective accountability.”
He told the Upper House that the issues will be addressed by requiring the OUR to be guided by the amended Act, the All-Island Electric Licence of 2011, and certain specified principles, when setting tariffs for the electricity sector.
“This more transparent decision-making system is being supported by an expanded governance framework being built into the OUR’s structure as well as by this legislation,” he said.
The new provisions will require that the regulator, when setting rates, to take into account: the cost, safety and quality of the service being provided, as well as Jamaica’s economic development; special rates for consumers, who might not be able to pay the full cost of electricity, as well as those involved in economic development activities; and tariffs for special economic zones.
It will also facilitate the inclusion of non-executive members to the OUR, to provide oversight support.
The House of Representatives passed the amended Act on October 13.