The key regulatory tools utilised by the Commission in pursuance of its objectives are:
- Rate Setting
- Regulations
Rate Setting:
As indicated in its Act, the PURC is mandated to set tariffs which will ensure both efficiency and equity in the provision of utility service. Consequently since its inception, the Commission has developed procedures to attain tariff levels that will not, only make the service operators financially viable, but also ensure that consumers also get value for money.
Currently based upon a transitional plan, the tariff has been gradually adjusted to full cost recovery levels. Furthermore, to prevent any erosion of tariff values through certain exogenous factors such as inflation, cost of oil and generation mix, an Automatic Adjustment Formula (AAF) has been put in place to ensure the sustainability of the process of service delivery. Refer to page ….. for details of Rate setting guidelines and Automatic Adjustment Formula.
Since its establishment in October 1997, the Commission has adjusted electricity and water tariffs five times. The adjustments were done in 1998(February and September), 1999, 2001(May), 2002(August) and 2003(March).
Regulation
Prior to the inception of the Commission, utility service providers had the power within the statutes that established them, to issue regulations in respect of their operations as well as their relations with consumers. These regulations were issued with the approval of their sector Ministries.
However the coming into being of a regulator has vested this power into the hands of the Commission. PURC has developed a process of developing and issuing regulations to streamline the operations of the service providers including that of the consumers.
Under Act 538, the PURC is mandated to issue regulations on:
Complaints procedures under Section 30; and
Establishment of consumer services committees under Section 31;
The Commission also has general powers to issue regulations considered necessary for the implementing the Act under Section 48.
Regulations Specifically Provided For Under Sections 30&31.
Pursuant to Sections 30 and 31 respectively of the Act, the Commission has promulgated two Legislative Instruments in respect of the Complaints Procedures and the establishment of Consumer Services Committees.
Complaints Procedure (L.I.1665): These regulations provide the framework for submission, hearing and determination of complaints as well as a dispute resolution mechanism for consumer complaints against utility companies. Refer to pg….for details.
Consumer Services Committees (CSCs)(L.I.1704): This legislative instrument lays down the procedures enabling the Commission to establish and operate CSCs in. The committees will act as “watchdogs” in respect of utility companies within their districts, advise on policy issues assist with consumer education and generally assist the PURC in protecting consumer rights as well as promoting observance of consumers responsibilities.
Regulations to be issued under Section 48
Regulations produced under Section 48 include:
- Termination of Service (L.I.1651); and
- Standards of Performance and Billing Practices Regulations
- Termination of Service Regulations
These regulations provide the framework for the disconnection of service by the public utilities. The legislative instrument is designed to inculcate some civility into the process of termination and remove some of the abuses of the old system under which the utilities operated.
Standards of Performance & Billing Practices Regulations
The delivery standards of utility companies which cover such aspects of services as metering, billing and payments are to be regulated according to these standards set by the Commission
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