Office of Utilities Regulation · PMEU Performance Monitoring & Evaluation Unit – Cabinet Office PPA Power Purchase Agreement ... (JEP) won the bid in 2009 and secured a Power Purchase

Office of Utilities Regulation

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MANAGEMENT ACCOUNTABILITY FRAMEWORK (MAF)

BUSINESS PLAN & BUDGET

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FY 2011/12 – 2013/14 ___________________________________________________________________

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March 2011

MAF Business Plan

Fiscal Years 2011 – 2014

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Table of Contents

1. FOREWORD FROM THE DIRECTOR GENERAL ............................................................................... 5

2. OUR MANDATE .......................................................................................................................................... 9

LEGISLATIVE FRAMEWORK .................................................................................................................. 9 MISSION STATEMENT ......................................................................................................................... 10 VISION ............................................................................................................................................... 11 OBJECTIVES ....................................................................................................................................... 11

3. EXECUTIVE SUMMARY ........................................................................................................................ 12

4. OPERATIONAL FRAMEWORK (2011/2012– 2013/14) ....................................................................... 15

THE OFFICE ........................................................................................................................................ 16 REGULATION AND POLICY DIVISION (R&P) ........................................................................................ 16 CONSUMER AND PUBLIC AFFAIRS (CPA) DIVISION .............................................................................. 17 GENERAL COUNSEL (LEGAL SERVICES) DIVISION ............................................................................... 18 DIVISION OF SECRETARY TO THE OFFICE ............................................................................................ 19 UTILITY MONITORING DIVISION ......................................................................................................... 20 HUMAN RESOURCES DEVELOPMENT/ADMINISTRATION DIVISION ....................................................... 21 FINANCIAL CONTROLLER‟S DIVISION ................................................................................................. 21 INFORMATION TECHNOLOGY (IT) DIVISION ........................................................................................ 22

5. REVIEW OF ACTIVITIES IN 2010/11 ................................................................................................... 23

INTERNAL OPERATION ....................................................................................................................... 23 THE TELECOMMUNICATIONS SECTOR................................................................................................. 25 ELECTRICITY SECTOR ........................................................................................................................ 26 WATER AND SEWERAGE SECTOR ........................................................................................................ 27 TRANSPORTATION SECTOR ................................................................................................................ 28 THE CONSUMER AND PUBLIC AFFAIRS ............................................................................................... 28 UTILITY MONITORING ........................................................................................................................ 28 HUMAN RESOURCE DEVELOPMENT .................................................................................................... 29

6. MANAGEMENT ACCOUNTABILITY FRAMEWORK (MAF) ......................................................... 30

GOVERNANCE ELEMENTS ................................................................................................................. 30

7. OUR’S WORK PLAN (2011 – 2014) AND DELIVERABLES ............................................................... 35

ASSUMPTIONS AND BASES ................................................................................................................. 35 CONTINGENCIES ................................................................................................................................ 36 PROPOSED SECTOR ACTIVITIES .......................................................................................................... 37 TELECOMMUNICATIONS SECTOR........................................................................................................ 37 ELECTRICITY SECTOR ........................................................................................................................ 42 WATER AND SEWERAGE SECTOR ........................................................................................................ 46 TRANSPORTATION SECTOR ................................................................................................................ 48

8. BUDGET - FISCAL YEARS 2011/2012; 2012/2013 AND 2013/2014 .................................................... 49

OVERVIEW ....................................................................................................................................... 49 BUDGET ITEMS ................................................................................................................................ 49 ALLOCATION OF BUDGET TO SECTORS ............................................................................................... 54

9. CONCLUSION ........................................................................................................................................... 56

10. SUPPORTING DOCUMENTS ................................................................................................................. 58

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CURRENCY EQUIVALENTS

Exchange Rate Effective April 1, 2011

(As provided in the Budget Call from MOF)

Currency Unit = Jamaican Dollar

US$1.00 = JMD$88.00

FISCAL YEAR

Jamaica: April 1 – March 31

ABBREVIATIONS AND ACRONYMS

AT Appeals Tribunal

CBA Cost Benefit Analysis

CC Citizens Charter

CET Common External Tariff

CPA Consumer and Public Affairs

CTO Commonwealth Telecommunications Organisation

CTU Caribbean Telecommunications Union

ENUM Electronic Numbering

ERP Enterprise Resource Planning

FAA Finance and Administration Act

FCA Fair Competition Act

FERC Federal Energy Regulation Commission

FTC Fair Trading Commission

FY Fiscal Year

IAEA International Atomic Energy Agency

ICT Information and Communication Technology

IDTT Inter Disciplinary Transformation Team

IFC International Finance Corporation

ITU International Telecommunications Union

JEP Jamaica Energy Partners

JNNP Jamaica National Numbering Plan

JPS Jamaica Public Service Company Ltd.

LNG Liquefied Natural Gas

LSA Level of Service Agreement

MAF Management Accountability & Governance Framework

MCC Mobile Country Codes

MNC Mobile Network Codes

MoU Memorandum of Understanding

MVNO Mobile Virtual Network Operator

MW Megawatt

NANPA North American Numbering Plan Administration

NARUC National Association of Regulatory Utility Commissioners

NEPA National Environmental and Planning Agency

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NP Numbering Portability

NPRM Notice of Proposed Rule Making

NRUF Numbering Resource Utilization and Forecast

OOCUR Organization of Caribbean Utility Regulators

OCG Office of Contractor General

OPM Office of the Prime Minister

OUR Office of Utilities Regulation

PBMA

Public Bodies Management and Accountability Act

PCJ Petroleum Corporation of Jamaica

PIOJ Planning Institute of Jamaica

PMAS Performance Monitoring & Appraisal System (for employees)

PMES Performance Monitoring & Evaluation System (for Senior Executives)

PMEU Performance Monitoring & Evaluation Unit – Cabinet Office

PPA Power Purchase Agreement

PSTU Public Sector Transformation Unit

RDBMS Regulatory Database Management System

Responsible

Minister

The Minister with portfolio responsibility for a particular utility

RIO Reference Interconnection Offer

SOP Standard Operating Procedures

TAT Telecomm Appeal Tribunal

The Office Director General and Deputy Directors General of the Office of

Utilities Regulation

TSLRIC Total Service Long Run Incremental Cost

UDDP Uniform Domestic Dialling Plan

URI Uniform Resource Identifier

USTDA United States Trade and Development Agency

UWI University of the West Indies

WRA Water Resources Authority

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FOREWORD FROM THE DIRECTOR GENERAL

The Vision 2030 Jamaica National Development Plan sums up the overall vision for Jamaica

in the following phrase:

“Jamaica, the place of choice to live, work, raise families, and do business”

In setting the OUR‟s agenda for the next three years as outlined in this Business Plan, the

OUR is cognizant of the critical role that it must play in national development by aligning

private behaviour with the public interest. It is also conscious that regulation is not an end in

itself. It takes place within a national context and is both a linchpin and a driver of economic

development. With this in mind, the Business Plan has been developed with the following

considerations:

In the electricity sector the critical and overriding objective must be to lower

electricity costs and to improve reliability;

In the telecommunication sector the imperative must be to deploy broadband to all

citizens and to strengthen competition in the various markets;

In the water sector the focus remains providing affordable access to potable water and

to sewerage services. An important element of this is to reduce losses and improve

efficiencies in the delivery process.

The Business Plan reflects the OUR‟s work programme for the three year period 2011 – 2014

and the approved Budget for fiscal year 2011/12 with indicative budgets for the succeeding

two years. It also discharges a number of the Office‟s obligations such as:

Compliance with Section 7 of the Public Bodies Management and Accountability Act

(PBMA);

Demonstration of the Office‟s continuing commitment to observing principles relating

to good governance, public accountability, transparency, judicious use of resources

and strategic planning;

Providing stake holders with notice of the major activities on the Office‟s agenda for

the period covered by the plan and at the same time provides an indication of the call

upon and the deployment of the Office‟s resources (human and otherwise) over the

projected period;

Providing stakeholders with an instrument of accountability for measuring the

performance of the Office;

The plan gives a review of the Office‟s performance during the fiscal year ending March 31,

2011 and for the first time includes a Management Accountability Framework (MAF). This

has been developed with involvement and inputs from the Planning Institute of Jamaica

(PIOJ) and the Public Sector Transformation Unit (PSTU).

The Office‟s operation across the regulated sectors has been met with varying levels of

success. The telecommunications sector continues to perform relatively well delivering more

innovative packages, access to cutting edge technology and services and greater

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responsiveness of suppliers to customer demands. Convergence is gaining momentum in this

sector and so the challenge is to ensure that the existing legal and regulatory framework is in

tandem with this development.

In the electricity sector, the OUR has been charged with the responsibility of ensuring the

Least Cost Expansion Plan (LCEP) approach to addition of generation capacity. During the

current fiscal year, Jamaica Energy Partners (JEP) broke ground at its West Kingston facility

to commence construction for a plant that will add 65.5 MW of new generating capacity to the

national grid. (JEP) won the bid in 2009 and secured a Power Purchase Agreement (PPA)

with Jamaica Public Service Company (JPS). The OUR has also issued Requests for Proposal

for an additional 480 MW of generation capacity.

With regard to renewable energy, by virtue of a Ministerial Directive, PCJ has exclusive

rights to the exploration and development of all renewable energy sources in Jamaica. This

has impacted the OUR‟s ability to request proposals for new generating capacity using

renewable energy sources. Nevertheless, JPS commissioned its 3 MW wind farm at Munro in

St. Elizabeth in October 2010. Wigton Wind Farm will be commissioning its 14MW wind

farm in Mandeville with plans to add a further 4 MW in the upcoming fiscal year.

Regarding the water sector, the NWC has been allowed to charge a rate (K-Factor) which will

allow it to undertake projects that are aimed at reducing non-revenue water losses. To date the

OUR has approved forty-seven projects which are to be funded from the K-factor Fund at an

estimated cost of J$11 billion.

With respect to the transportation sector, as the legislation to bring the sector under its

regulatory remit is still pending, the Office‟s main activity in this arena remains one of

providing advice to the minister for the setting of bus and taxi fares. Notably, the Office

remains concerned that its recommendations with regard to this sector have not always been

accepted.

There are indicators that the OUR‟s performance in managing the regulatory process has been

credible. One such indicator is that the country continues to see significant interests in

businesses seeking licences to operate in the various sectors (at varying levels). This not

withstanding, there are still a number of matters that continue to give the Office cause for

concern. Notable among these are:

The extent to which the Office is constrained in its operations either by the absence of

the supporting statutory framework as in the case of electricity and water, delay in the

enactment of enabling legislation as in transportation and defects in existing statutory

and institutional provisions as in the case of telecommunications;

The fact that the regulatory environment has become increasingly litigious with a

number of regulated entities resorting to legal challenges, seemingly as a means to

delay action by the Office. While this practice is not unusual or unexpected it does

have an adverse effect on the regulatory environment in that the courts‟ process is

slow thus impacting on the Office‟s ability to conclude a number of long outstanding

issues.

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The continued public perception that the OUR is not satisfying its mandate especially

as it relates to consumers grievances with the regulated utilities.

The Office in the 2009/10 fiscal year took the opportunity to re-engineer its business

processes. The thinking then was to do away with the silos and deploy its skills mix across all

the sectors. This has not progressed at the rate it was originally intended to, however, in this

current Business Plan, and in keeping with the Government‟s plan for full devolution of

authority for the OUR, the focus will be on accountability and empowerment of staff to allow

for greater efficiencies in operations.

There has been a partial adjustment to the remuneration levels for staff and for this the OUR

is thankful. However, there is still the risk of not being able to retain staff given the

specialised skills required, skills that are being highly sought after from neighbouring

regulatory agencies as also the regulated utilities. The OUR therefore looks forward to being

one of the agencies to be granted full devolution of authority as recommended by the PSTU as

this will allow for the alignment of compensation with competencies and staff performance.

Given the Office‟s expressed commitment to focus on customer service issues in all the

sectors, greater attention is being given to the development and monitoring of service

standards; compliance with the terms and conditions of the respective licences and the

response to directives of the Office. The OUR is currently consulting on Quality of Service

rules for the Telecommunication Sector and among other things will be monitoring the system

losses reduction efforts of JPS.

As it relates to third party services, the dynamic nature of the regulated sectors and the

inability to always control the schedule of activities, the impracticality of staffing to meet

peak activities, the narrow specialist skills required at times, are all factors that create the need

to frequently resort to the use of external expertise for limited duration. The Office however

will ensure that where third parties are required to perform a specific task, there will be

explicit skill transfer components built into the contracts.

In large part the general objectives set out in the previous years‟ plan remain relevant. Subject

to the limitations, uncertainties and challenges outlined above, the Office is committed to

ensuring that:

there is full compliance with all statutory and public sector guidelines in terms of its

own internal operation and thus care is exercised with respect to compliance with the

requirements of the PBMA, public sector guidelines with respect to procurement and

auditing among others and that the strictures of both the Auditor General and the

Contractor General are complied with;

there is timely response to all matters placed before the Office to the extent that such

matters are within its control to act;

the Office maintains a forward looking position with regard to its proffering of policy

advice to the government and that this is brought to bear on the approach it adopts in

discharging its mandate within the various regulated sectors;

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the staff complement continues to be exposed to the highest levels of training and

remains on the cutting edge of developments within all the sectors falling within its

remit;

it incorporates in all its activities indices for measuring effectiveness and the concept

and practice of regulatory impact assessment is reflected in all its decisions;

The Business plan therefore sets out in detail the various initiatives and projects that the OUR

will pursue under the broad objectives listed above. If we are to succeed however, we will

need to have the right institutional arrangement and capacity. In this regard, the OUR will pay

keen attention to:

enabling legislative framework – this is why we are currently pursuing the

strengthening of existing statutes and the creation of others;

our business practices – this involves among other things, maintaining independence,

being consistent, observing natural justice principles and operating with even

handedness;

our human resource capacity – our staff must be well trained, flexible, adaptable,

professional and willing to embrace the inevitable changes of our dynamic operating

environment;

use of technology – we must be savvy, efficient, astute and creative;

organisational culture – the watchword being the pursuit of excellence in all areas,

delivery of optimal service, punctuality, effectiveness and maintenance of integrity.

In all of this we must keep at the forefront the fact that if the public interest is to prevail,

regulatory decisions or actions must be based on well researched facts, good information and

objective analysis.

Keeping the above in mind the Business Plan for fiscal years 2011/14 reflects an integrated

programme of activities for all sectors and indeed for all areas of the organization. The OUR

will also continue with its effort at ensuring that the regulatory process remains relevant and

delivers value for money.

Ahmad Zia Mian

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2 OUR MANDATE

Legislative Framework

2.1 Section 4 (1) of the Office of Utilities Regulation Act (the OUR Act) sets out the

functions of the Office shall be to:

(a) regulate the provision of prescribed utility services by licensees or specified

organizations;

(b) receive and process applications for a licence to provide a prescribed utility

service and make such recommendations to the Minister in relation to the

application as the Office considers necessary or desirable;

(c) conduct such research as it thinks necessary or desirable for the purposes of the

performance of its functions under this Act;

(d) advise the responsible Minister on such matters relating to the prescribed utility

service as it thinks fit or as may be requested by that Minister; and

(e) subject to section 8A, to carry out, on its own initiative or at the request of any

person, such investigations in relation to the provision of prescribed utility services

as will enable it to determine whether the interests of consumers are adequately

protected”.

2.2 Section 4 (3) provides for the Office, in the performance of its functions under the Act

to undertake such measures as it considers necessary or desirable to:

“(a) encourage competition in the provision of prescribed utility services;

(b) protect the interests of consumers in relation to the supply of a prescribed utility

service;

(c) encourage the development and use of indigenous resources; and

(d) promote and encourage the development of modern and efficient utility services;

(e) enquire into the nature and extent of the prescribed utility services provided by a

licensee or specified organization”.

2.3 Schedule 1 of the Act defines Prescribed Utility Services (the services over which the

OUR exercises regulatory responsibility) as:

1. The provision of telecommunication services.

2. The provision of public passenger transportation by road, rail or ferry.

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3. The provision of sewerage services.

4. The generation, transmission, distribution and supply of electricity.

5. The supply or distribution of water.

2.4 The OUR Act is the umbrella legislation which establishes the organization and sets

out its functions and responsibilities in respect of the sectors it regulates. Sector

specific legislation and instruments such as the Telecommunications Act 2000 or

Licenses such as the All-Island Electric Licence 2001 granted to the Jamaica Public

Service Company Limited (JPS). These set out specific provisions, consistent with the

principles elaborated in the OUR Act, as to the Office‟s functions in the particular

sector and/or its relationship to the service provider.

2.5 In pursuit of its mandate, the OUR seeks to operate at all times in a manner which is

characterized by fairness, timeliness, efficiency, transparency, attention to detail and

independence. It adopts regulatory interventions that are the least intrusive but

designed to ensure a balance in the relationships between all stakeholders. As part of its

modus operandi, it consults widely and assesses the impact of its proposed action on all

stakeholders before issuing regulatory determination.

2.6 All of this is underpinned by a philosophy that the regulator has a duty to operate in the

public interest.

2.7 The OUR in discharging its statutory functions is required to pay due regards to

government policy. The Government has set out its development policy objectives and

directions in the Vision 2030 Jamaica National Development Plan. The following

objectives are particularly relevant to the OUR‟s remit:

To have an enabling business environment;

Development of a modernized public transportation system;

Strong economic infrastructure;

Expansion of broadband networks island-wide to all including those with

disabilities;

Ensuring adequate and safe water supply and sanitation services;

Diversification of the energy supply mix; and

Promotion of energy efficiency, efficient energy supply systems and conservation.

The OUR‟s proposed work programme is designed to achieve the above objectives.

Mission Statement

2.8 “To contribute to national development by creating an environment for the efficient

delivery of utility services to the customer whilst assuring that service providers have

the opportunity to make a reasonable return on their investments.”

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Vision

2.9 “To play a critical role in achieving the objectives of the Vision 2030 Plan by aligning

private behaviour with the public interest.”

Objectives

2.10 In the context of Vision 2030, the OUR has identified the following as key objectives:

to ensure that the consumers of utility services enjoy an acceptable quality of

service at reasonable cost and to align the private behaviour with public interest;

to establish and maintain transparent, consistent and objective rules for the

regulation of utility service providers;

to promote the long-term efficient provision of utility services for national

development consistent with Government‟s policy;

to provide an avenue of appeals for consumers in their relationship with the utility

providers;

to work with other related agencies in the promotion of a sustainable environment;

to monitor and assure the supply of quality of service by providers; and

to act independently and impartially.

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3. EXECUTIVE SUMMARY

3.1 Due to its strategic position in the overall Government thrust for transparent economic

growth, the OUR has been targeted to become one of the first entities to be accorded

Full Devolution1 and De-concentration

2 of Authority over the financial, human and

operational resources assigned to it.

3.2 The preparation of this Management Accountability & Governance Framework

(MAF) Business Plan is in keeping with the Cabinet approved Accountability

Framework for Senior Executives and the Performance Monitoring & Evaluation

System (also for Senior Executives). The objectives of this Plan are to:

enable the Director General to effectively manage the Office in both the short and

long term;

provide the basis for the establishment of a contract3 for what targets and

performance will be achieved;

define what the Office needs from the government in terms of mandate, capital

investment and new authorities;

communicate the results of the Office planning process and to provide a useful

reference for the Director General and the Management Team.

3.3 The Business Plan provides the Prime Minister (who has administrative

responsibilities for the OUR); the Sector Ministers and members of the public with

assurance that the Office:

has a clearly defined direction,

is dealing efficiently with all of the administrative issues; and

is managing its affairs and resources so as to minimize the risk of not meeting

agreed performance levels and timeframes.

3.4 The Business Plan indicates:

the Office‟s operating vision outlining the major focus and the resulting timetable

of activities for the three (3) year period 2011/12 through to 2013/14,

the work of the Office over the past fiscal year (i.e. 2010/11),

the means by which the Office will deliver on its goals and how it will measure

progress and the reasons for any significant difference between planned targets and

actual results.

1 Devolution of Authority: Arrangement will be made with the respective central agencies to provide

increased autonomy, the selected Heads of Entities for the proper deployment of their human, financial and

material resources to achieve the agreed on performance targets (as agreed by the CEO, Portfolio Minister

and responsible Permanent Secretary). 2 De-concentration of Authority: To properly manage the Entity towards achieving its performance targets the

Heads will be required to establish an appropriate level of “line authority” that will enable employees to take

operational decisions that will benefit the customer through more efficient service delivery. 3 The Prime Minister will sign a Performance Agreement with the Director General reflective of the elements

contained in this Plan

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3.5 This Business Plan is consistent with the ten (MAF) components outlined by the

PSTU for entities targeted for Full Devolution and De-concentration of Authority. It

includes financial and operational targets and commitments, supported by the

established performance indicators and the appropriate time frames for realizing them.

The implementation of Full Devolution and De-concentration will be coordinated by

the Office‟s Interdisciplinary Transformation Team (IDTT) comprising of a cross

selection of staff. Although charged with the responsibility for creating the appropriate

operating environment for devolution and de-concentration, these persons will still be

required to fulfil their substantive duties as part of their own performance evaluation.

3.6 As required under the Government‟s reporting requirements, the Business Plan will be

submitted to the Performance Monitoring and Evaluation Unit (PMEU) - Cabinet

Office and to the Planning Institute of Jamaica (PIOJ) to enable these entities to

monitor the OUR‟s progress and contribution to the achievement of Vision 2030.

3.7 There are two important contextual matters for the development of this Plan viz: (i) the

OUR has been listed as one of the entities recommended for full devolution and de-

concentration of authority; and (ii) the explicit alignment of its activities with the

Government‟s “Vision 2030 Jamaica, National Development Plan” (The Vision 2030).

3.8 The Plan prescribes a set of activities designed to fulfill the Office‟s obligations under

statute and the proposed MAF consistent with the Vision 2030. In this regard the OUR

has defined the Policies and Programmes objectives to:

establish and maintain transparent, consistent and objective rules and standards to

regulate the providers of specified utility services while fully protecting the public

interest;

enhance efficient utility operations and provide an enabling environment

conducive to investments;

develop and sustain research and analytic capacity ensuring high quality policy

options, programme design and advice to the government; and

align regulations, directives, and processes with legislation and policy mandate .

3.9 In its interface with the public, the OUR will discharge its activities such that services

are “citizen-centred”. In this regard, Policies and Programmes will be developed from

the "outside in” and partnerships will be encouraged and effectively managed. In

developing or strengthening current policies and programmes, the following will be

taken into account:

providing a clean and safe environment; providing development opportunities for

staff; fostering an environment of fair play and trust; encouraging employees

participation in the development of procedural documents;

the executive team clearly defining the corporate context and practices for

managing organizational and strategic risks proactively;

the departmental control regime (assets, money, people, services, etc.) is integrated

and effective, and its underlying principles are clear to all staff; and

accountabilities for results are clearly defined, assigned and consistent with

resources, and delegations are appropriate to capabilities.

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3.10 The presentation of the Plan is structured as follows:

Section 4 outlines the organization‟s framework for the fiscal years 2011/12 –

2013/14.

Section 5 provides a review of the work done during the current fiscal year 2010-

2011, highlighting the achievements including extensive work on the

Government‟s Energy Policy, analytical support for proposed LNG Project; hosting

a regional utility regulators conference; and commissioning a cost benefit analysis

of Number Portability. It also discusses the organisational structure and the internal

arrangements including innovative and ground-breaking policies such as

intellectual convergence (dismantling the work silos where persons confined their

efforts to particular sectors). Additionally, it also discusses unplanned activities and

indicates how some of these took precedence over planned activities. A detailed

account of the status of the individual activities for each of the sectors is provided

in Annex 1 along with indications of their compliance or non-compliance with the

timetable set out in the last plan.

Section 6 sets out the Management Accountability Framework and Governance

Elements and their impacts on OUR.

Section 7 sets out the major assumptions governing the development of the work-

plan and alternative budgets to address risk management in the event that the

assumptions do not hold.

Section 8 provides commentary and explanations for the budget for 2011/

(Attachment 1, Table 1-3).

Section 9 provides the conclusions.

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4. OPERATIONAL FRAMEWORK (2011/2012– 2013/14)

4.1 The Vision 2030 sums up the overall vision for Jamaica in the following phrase:

“Jamaica, the place of choice to live, work, raise families and do business”

4.2 The OUR will assist in achieving the Vision by aligning private behaviour with the

public interest across the various utility services it is responsible to regulate. In this

regard, the service providers will be monitored aggressively to encourage the delivery

of superior, quality and efficient customer service.

4.3 For information, communication and telecom services, the imperative is to deploy

broadband to benefit all citizens, including those with disabilities, and to strengthen

competition in the various markets. A Broadband Baseline data survey will be

conducted early in the next fiscal year.

4.4 For electricity, the objective is to lower real costs while improving reliability, quality

and efficiency without compromising the environment.

4.5 For water and sewerage, the focus is to provide access to affordable potable water and

to sewerage services. An important element of this is to reduce non-revenue water and

improve efficiencies in the delivery process (by improving the infrastructure).

4.6 The OUR maintains that there is a diverse range of issues as between the different

utilities but there is a commonality of regulatory principles in terms of:

ensuring least economic cost;

fostering competition;

ensuring transparency, equity and fairness in regulation

providing enabling and secure environment to encourage investments in the

provision of utility services;

driving service quality;

promoting access for all including those with disabilities;

encouraging best practices and state of the art technology;

promoting measures that would encourage conservation and supply/demand side

management;

environmental protection; and

utilities convergence to reduce the cost of new and existing infrastructure.

4.7 At the same time, accurate billing, security of the network and the need to apply smart

technology will remain central to the OUR‟s public interest focus.

4. 8 As one of the Entities selected to be accorded Full Devolution of Authority over

financial, human and operating resources, subject to general parameters negotiated

with central agencies, the OUR is committed to the implementation of the

Management Accountability and Governance Framework (MAF). This would be in

full compliance with the Cabinet approved Accountability Framework for Senior

Executives (October 2010). In conjunction with this Devolution the OUR Senior

management team will design and implement a De-concentration strategy that will

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permit each employee to execute his/her duties in a manner that enhance their capacity

to respond to clients‟ needs for services and/or products. The introduction of an

optimum De-concentration of Authority approach will empower employees at the

level where services are delivered efficiently/effectively. It will ensure that their stated

outputs and outcomes are specifically identified and measured through the

Performance Monitoring & Evaluation System (PMAS).

The Office

4.9 The statutory appointees to the Office are the Director General and Deputy Directors

General. Three appointees currently constitute the Office.

Regulation and Policy Division (R&P)

4.10 The Division‟s primary function is to advise the Office on Regulatory Policy, to

analyse, monitor and evaluate the economic, financial and technical performance of all

regulated utilities and sectors and to assess the extent of competition where applicable.

Additionally, it has responsibility to develop tariff models, recommend tariffs and

commission a range of technical functions to support the Office. R&P is staffed by

highly specialized professionals comprising economists, financial analysts and

engineers. A critical skill-set that is missing and which will be added to the team, is

that of a legal analyst. The positions of Regulatory Analyst and a Telecommunications

Engineer were filled at the time of writing. Another Engineer is expected to join the

team in February, 2011.

Objective

4.11 To provide the Office with such economic and technical advice as to ensure that

consumers of utility services enjoy acceptable quality of service at least economic cost

and to ensure security of timely service for the future.

Strategy

4.12 The Division discharges its functions through a combination of financial, economic

and technical analyses of the regulated companies, benchmarking of the service

providers against comparable organisations internationally. It also commissions as the

case may be, regular surveys of the state of competition in the various sectors. A

number of technical workshops are expected to be convened in next fiscal year for

technical and outreach purposes.

General Activities

4.13 Among other things, the Regulation and Policy Division:

conducts analyses of rate applications;

provides policy advice to the Office and through the Office to the

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Government;

provides the Office with technical and economic advice on matters of

dispute between competing utilities;

commissions research on all aspects of utilities regulation;

conducts markets and competition analyses.

produces and publishes various documents (consultative documents, notice

of proposed rulemaking, position papers, working papers, policy advisories,

determination notices, etc.) critical to the regulatory process;

engages with overseas counterparts for purposes of information exchange,

providing assistance and collaboration on regulatory matters;

represents the Office at various international fora.

procurement of new generation capacity through open competition to ensure

continued and timely service at least economic cost.

Consumer and Public Affairs (CPA) Division

4.14 This Division incorporates consumer affairs, communication services and the

Information Centre. It also liaises with and provide technical support to the work of

the Consumer Advisory Committee on Utilities (CACU) an independent advocacy

group whose operations are facilitated by the OUR.

4.15 CPA administers the consumer affairs regulatory function of the OUR. It educates

consumers on their rights and investigates decisions made by the utility companies on

consumer complaints and with which the consumers remain dissatisfied. The Division

is responsible for developing quality of service and customer service standards. The

Information Centre is also managed by the CPA. Apart from providing vital resources

for the staff, the Centre is also open to the public and it is through this medium that the

Office‟s obligations under the Access to Information Act are discharged. The CPA

also has the critical function of managing the content of the Office‟s website.

Objectives

4.16 CPA is guided by the following objectives:

to ensure that the perspective of consumers and public interest are considered in all

regulatory decisions and determinations;

to ensure that customers of the utility companies enjoy acceptable quality of

service at economic cost and are assured of secure and timely supplies;

to provide an avenue of appeal for consumers in their relationship with the

utility service providers;

to inform and educate consumers and the general public; and

to highlight the work of the OUR and to maintain a positive public image.

Strategy

institution of mechanisms for feedback;

establishment of pre-approved service standards;

managing media relations;

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public education;

prescription of sanctions for breaches.

General Activities

4.17 The Division uses as a primary input to its policy development and advice to the OUR,

the results of analyses of appeals received from customers in regard to the services

provided by the companies. Feedback from consumers who attend town meetings are

utilised. The CPA also commissions a consumer survey every 18 months which seeks

consumer feedback on a range of consumer issues. Additionally it pursues a

programme of public education and consultation via diverse media.

General Counsel (Legal Services) Division

4.18 This Division provides legal support in the development of the regulatory framework,

the establishment of rules of procedure and the drafting of decisions issued by the

OUR. It seeks to operate in a manner which minimizes the likelihood of challenges

and ensures successful judicial review of OUR‟s decisions. The Division is required

to respond to all legal challenges to the OUR‟s decisions and where necessary to

engage and manage the services of external legal services. The Division now operates

with a staff complement of four (4). The position of Deputy General Counsel was

filled in October, 2010.

Objective

4.19 To develop, maintain and enforce the legal framework for the OUR and to secure an

enabling environment for the efficient functioning of the utilities through a framework

of rules that lend predictability to the OUR‟s decisions.

General Activities

4.20 The General Counsel‟s Division is generally engaged in the following activities:

ensuring that the OUR observes due process and complies with all legal

requirements in discharging its functions;

the review of consultative documents;

the conduct of investigations into allegations of breaches of the

relevant legislation and or instruments including preparing the Office to conduct

hearings;

preparation and implementation of the Rules of Practice and Procedure

of the OUR (finalising existing draft and continuous update of Rules etc);

the preparation of instructions and briefs to external Counsel for cases

under judicial review, matters before the Electricity and Telecommunications

Appeals Tribunal, respectively etc.;

the preparation and issuance of enforcement orders and referral to the

courts of relevant matters;

the preparation of matters to be heard by the Appeals Tribunal;

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preparation of legal opinions and advice to internal

Divisions;

the preparation of correspondence of legal significance for the OUR; and

interfacing with external stakeholders to protect the OUR‟s legal position.

Division of Secretary to the Office

4.21 This Division ensures the effectiveness and efficiency of the OUR and charts clear

processes for decision making and compliance with internal and external procedures.

It is the critical point of interface between the Office and its internal and external

stakeholders. The Secretary to the Office sets the regulatory agenda in consultation

with the Director General and ensures that matters before the Office are disposed of in

a timely manner.

4.22 The Division manages the OUR‟s external and international relationships with other

regulators and institutions in so far as they relate to its regulatory remit. It is

responsible for the licence processing and management functions of the OUR and for

the project management and monitoring functions especially with regard to projects

which rely on external technical assistance. The Division assists the Office with the

development and articulation of its strategic and policy thinking. In this regard it also

coordinates and monitors the regulatory Work Plan and provides inputs into the

Annual Report.

Objective

4.23 To ensure that the Office is guided by well-defined and clearly articulated strategic

thinking, makes decisions in a timely manner, follows standard processes, maintains

good relationship with all stakeholders and maintains and makes available to the

public accurate and complete records of decisions. The Secretary maintains the

records of Office meetings.

General Activities

4.24 The following are the general activities of the Division:

maintaining Office time table;

drafting and issuing correspondence, position papers, presentations, etc. on behalf

of the Office;

initiating enforcement actions for breaches of licences, directives, orders, etc.

attending Office meetings and monitoring and driving the enforcement of

decisions;

maintaining correspondence with external parties;

managing and maintaining the licensing process;

developing project applications and negotiating project terms

developing rules of procedures (in consultation with the General Council) for the

conduct of Office affairs;

co-ordinating the preparation and submission of quarterly and other periodic

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statutory reports;

co-ordinating the development and presentation of the business plan and

preparation of material for annual reports; and

representing the OUR on various committees and in various fora locally and

internationally

Utility Monitoring Division

4.25 This Division has primary responsibility for ensuring regulated entities are compliant

with Office Directives, relevant pieces of legislation, license conditions and tariff

requirements. Its activities provide the Office with ongoing assessment of its

regulatory effectiveness.

4.26 Key utility projects and quality standards are carefully monitored and assessed by the

Division to ensure that established targets are met and recommendations made to the

Office on the approach to be taken in addressing issues that have arisen or are likely to

arise. The Division ensures that all decisions include measurable indices for assessing

success and reflect regulatory impact assessment. The Division is responsible for

commissioning regular Regulatory Impact Assessments (RIA) regarding the

improvement in efficiency and compliance to agreed service, quality and investment

targets.

Objective

4.27 To monitor service providers‟ compliance/adherence to the existing rules and

regulations, while assisting in the promotion of sector efficiency through policy

recommendations and the monitoring of key utility projects. Ensure that the OUR is

able to measure and communicate regulatory effectiveness.

Strategy

4.28 Monitor service providers‟ compliance against set targets through established

reporting requirements and the commissioning of audits. Implement appropriate rules

and guidelines for utility service delivery; liaise internally with other divisions on

activities which will inform the Division‟s processes. Commission Regulatory Impact

Assessments (RIAs).

General Activities

4.29 The following are the general activities of the Division:

monitor utility projects through progress reports etc.;

monitor service standards through reporting and customer feedback – surveys etc.;

produce regular Regulatory Impact Assessments;

conduct periodic audits of specific functions of the utilities;

prepare policy papers and recommendations to the Office;

maintain communication with service providers on actions/strategies with respect

to projects and other regulatory undertakings.

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Human Resources Development/Administration Division

4.30 This Division provides administrative and human resources support to the OUR and is

also responsible for training and internal procurement.

4.31 A multi-sector regulatory body such as the OUR must necessarily identify training and

development opportunities for its personnel who are required to perform highly

complex and technical duties and compete against the best that the regulated

companies have to offer. Moreover, Utility Regulation is a highly technical,

specialized and exclusive vocation, hence the need to provide the OUR‟s professional

staff with on-going training offered by internationally recognized training institutions.

This imperative is reflected in the allocation of significant budget resources to this

activity.

4.32 This Division ensures that the OUR is highly organised and that administrative

functions are performed smoothly with little disruption. The Division is currently

developing a comprehensive plan incorporating training, succession planning, staff

development and standard operating practices. The Division also manages the staff

recruitment and performance evaluation using modern techniques.

4.33 Managing and reporting on procurement have become critical given the need to ensure

strict adherence to public sector procurement requirements and Office of Contractor

General‟s (OCG) Directives.

Financial Controller’s Division

4.34 The Financial Controller has the responsibility to:

prepare monthly, quarterly and annual financial statements;

prepare, monitor and secure compliance with the approved Budget;

manage the financial resources of the OUR;

treasury management;

cost control;

ensure compliance with statutory requirements and in particular the provisions of

the Public Bodies Management and Accountability Act (PBMA) and the Finance

and Administration Act (FAA);

ensure that all financial records pertaining to externally funded projects are

carefully documented and that disbursement requests are settled in a timely

manner;

organise and prepare accounts for annual audit; and

address any other matters likely to affect the financial well-being of the OUR.

4.35 The Financial Controller‟s role is critical to cost management and ensuring maximum

delivery of services to regulatory dollars. The Division is collaborating with the IT

department to develop cost and time management systems that will allow the OUR to

cost projects, skills and other inputs, making regulatory cost more determinable.

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4.36 Additional responsibilities and duties performed by this division include negotiating

group health insurance and administering the group pension plan.

Information Technology (IT) Division

4.37 The IT Division plays a pivotal role in the successful execution of all activities on the

work programme. The Division‟s work planning process examines plans and priorities

for the use and delivery of information technology in support of each three year work

plan of the OUR. As a support division, IT has focused on delivering fast, accurate,

secure information with a minimum of downtime. This among other things, includes

the development and maintenance of a comprehensive relational database system to

allow an efficient discharge of OUR‟s responsibilities.

4.38 The OUR relies on this Division to:

standardise its processes;

obtain and maintain standardised information from all service providers in the

form of Relational Database Management System (RDBMS) which is secure,

scalable and easily accessible;

improve turnaround time;

interface directly with stakeholders;

provide real time information and cutting edge research; and

deliver a suite of services electronically.

4.39 IT will achieve this through the integrated Relational Database Management System,

training and investment in relevant hardware and software. IT will also be seeking to

infuse a greater technology culture throughout the organization.

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5 REVIEW OF ACTIVITIES in 2010/11

5.1 Among the major regulatory and operational successes during the year were:

Successful conclusion of negotiation for the provision of additional 65.5 MW of

electricity to the national grid; Ground was broken for construction and operations

are expected to commence in the first quarter of 2012;

Upholding by the Telecommunications Appeal Tribunal (TAT) of the OUR‟s

position on the declaration of dominance;

Issuance of a carrier licence to Digicel Cable Communications Ltd. to construct,

own and operate two international submarine cables and associated facilities. The

proposed cables will originate at points in Jamaica and terminate in Haiti and the

Bahamas, respectively.

Cost Benefit Analysis to determine the feasibility of implementing number

portability in Jamaica, in accordance with the Telecommunications Act 2000.

Providing support for the LNG Core Team at Cabinet Office.

Assisted in the preparation of Terms of References for projects to be done under

an agreement with the Government of Jamaica and the World Bank.

TAT‟s upholding of OUR‟s position on number blocking by Claro;

Conclusion of new Least Economic Cost Generation Expansion Plan. This will

provide a guide to the procurement of additional generating capacity.

Recognition by the OCG as one of the Public Sector agency achieving 100%

compliance;

Issuing of RFP for 480MW of new generation capacity on international

competitive basis;

Establishment of Audit Committee; and

Recruitment of staff with the requisite skill-set for OUR‟s operations.

Internal Operation

5.2 A number of measures were adopted in fiscal year 2010/11, aimed at improving

internal operations and delivery of service to stakeholders. These among others,

include:

the establishment of internal benchmarks for responses to correspondence;

the initiation and deployment of information and communication technology to

speed up the regulatory processes;

establishing standardised reporting system and document review procedures;

development of time utilization reporting systems;

implementation of a Relational Database Management System designed to make

regulatory inputs and outputs more measurable. At the time of writing, the

consultant firm “David Tate Export Inc.” has been awarded the contract to develop

and implement this system.

5.3 Draft rules of practice and procedure have been prepared to provide a framework for

the OUR to achieve its objectives of fairness, consistency and transparency in the

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execution of its functions. The document sets out procedures for such matters as,

application for regulatory actions, hearings and enquiries, consultation processes,

meetings of the Office, alternate dispute resolution, monitoring and enforcement,

annual regulatory return, licence applications, customer complaints procedures. This

document should be available early in the next fiscal year.

5.4 A review of the OUR Act was undertaken and several deficiencies including but not

limited to, the inadequate enforcement powers of the OUR, were identified. Draft

Recommendations for its amendment were submitted to the Cabinet Office.

5.5 The OUR Act specifies various breaches for which licensees are liable to summary

conviction in a Resident Magistrates Court. As part of a bid to ensure that it utilises the

enforcement powers available to it, the OUR has engaged the Office of the Director of

Public Prosecutions (DPP) with a view to agreeing on a protocol that will facilitate the

efficient and effective prosecution of these breaches.

5.6 During this fiscal year, the Government introduced the Whistle-blower Legislation.

The Protected Disclosures Bill has been laid in Parliament and at the time of writing

the Bill is being discussed by a joint select committee. The OUR is named as a

“Prescribed Person” under the Bill with responsibility to receive protected disclosures,

investigate the disclosures and take appropriate action. The OUR has since developed a

preliminary draft of procedures for the receipt and investigation of protected

disclosures and has submitted these to the Ministry of Justice along with various

general comments and recommendations on the draft Bill.

5.7 The OUR‟s draft budget for the fiscal year 2011/12 which is published as a part of this

Plan is expected to receive approval as part of the annual estimates of expenditure of

major public bodies to be tabled in March 2011. The OUR has now completed the

three year self-imposed cap on regulatory fees. Even so, the OUR, in determining the

allocation to the various sectors has sought to keep costs at their lowest level consistent

with its objective to deliver high quality service at the least economic regulatory cost.

5.8 The OUR agrees with the operators that the information on regulatory fees is not given

to them in time for them to finalize their own budgets. The OUR is therefore

committed to a timely determination of these fees and also timely communication with

operators. To facilitate this process, OUR has established a project costing system

(CTNC System) that would allow accurate estimates of costs for each activity that is

rendered by the OUR. This will in the future assist to develop timely and realistic cost

estimates and their appropriate allocation to each sector that is regulated by the OUR.

5.9 The OUR is continuing efforts, to secure external sources of funding where possible to

ease the dependence on regulatory fees. For example, it is hoping to secure funds from

the World Bank to support the development of regulatory framework for the natural

gas sector and petroleum pricing and monitoring system.

5.10 The staff complement at the time of writing the final draft is 57 against the targeted

complement of 58 provided for in the budget. The OUR was successful in the

recruitment of a Deputy General Counsel; an Internal Auditor (a position that was

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mandated for purposes of good internal control); a regulatory analyst with considerable

experience in the telecommunications sector and a telecommunications engineer.

5.11 Training and capacity building will have to be addressed especially in the event of the

OUR being given additional responsibilities. In any event, its personnel are required to

perform highly complex and technical duties and to compete against the best that the

regulated companies have to offer. Emphasis is being placed on succession planning

and overall staff and talent development. The emphasis would be in reducing the staff

turnover.

5.12 The Office has established an Audit Committee which comprises five persons spanning

a wide cross section of professionalism. This is a statutory requirement and the purpose

is to ensure there are internal controls in place and that these controls are properly

monitored. Following upon its recommendations, an internal auditor has also been

appointed.

5.13 The Human Resource (HR) Policy and Procedures manual has been revised and at the

time of writing was being reviewed by the internal legal team. Among other things, the

manual will address core values and ethics. Other manuals specific to administration

and HR practices will be developed during the next fiscal year.

5.14 The OUR continues to impress on the Government to allow the Office to make salary

offers outside the limit of public sector workers emoluments especially in light of the

fact that the OUR requires highly skilled staff with international mobility. In addition,

the OUR is not funded from the Consolidated Fund. OUR has been successful in

providing small interim adjustments to members of the Office and other staff. It is

hoped that with the implementation of the devolution programme, the OUR would be

in a better position to adjust staff compensation to competitive remuneration packages

that would help to reduce high staff turn-over.

5.15 Performance with regard to maintaining timelines for projects in the various sectors

was affected by ad-hoc requests for reconsideration and appeals to the various Appeals

Tribunal (ATs). Significant time and resources had to be diverted and committed to

prepare affidavits and briefing the external counsels for a number of on-going legal

challenges

The Telecommunications Sector

5.16 The telecommunications sector remains buoyant. The major companies continue to

demonstrate confidence in the future of the sector. The country therefore continues to

hold its own in terms of the enhancement of its information technology and

telecommunications infrastructure.

5.17 Combined data for fixed and mobile lines indicate that the country now enjoys well

over 100% teledensity. There are however still persons lacking access either by virtue

of economics or geographical remoteness. The Government‟s emphasis in Vision 2030

is the expansion of the broadband network to allow ubiquitous access.

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5.18 The Office of the Prime Minister (OPM) has been spearheading the development of a

new Information, Communications and Technology (ICT) policy. The policy will

result in a single ICT Regulator, maintenance of a separate competition agency and a

separate content regulator. The OUR awaits the outcome of this development.

5.19 During FY 2010/11 disputes regarding access to limited facilities, interconnection

charges and other interconnection issues resulted in suits and counter suits among the

major providers. Thus the regulatory environment continues to remain litigious. All of

this serves to underscore the need to revisit the legislative and regulatory framework

for the sector and strengthen enforcement powers of the regulator.

5.20 The OUR was successful in its defence against Digicel‟s appeal to the Tribunal on the

matter of “Assessment of Dominance in Mobile Call Termination”. This ruling allows

the OUR to direct dominant providers to issue a Reference Interconnection Offer (RIO)

which will set out the terms and conditions for interconnection. The OUR will then

have the responsibility for approving interconnection rates for the sector.

5.21 The consultation document on Global Emergency Numbers has been published and

stakeholders have been asked to submit comments by January, 2011. As regards

Number Portability, the OUR, with the help of external consultants completed the

feasibility studies and cost benefit analysis. Consultations are scheduled for completion

during early 2011.

5.22 The OUR made recommendations to the Prime Minister for issuance of a carrier

licence to Digicel Cable Communications Limited to construct, own and operate two

international submarine cables and associated facilities. The proposed cables will

originate at points in Jamaica and terminate in Haiti and the Bahamas, respectively.

5.23 Despite the delays and disruptions, at the time of preparation of this Plan, the OUR is

on track to complete its scheduled regulatory agenda for this sector by end of fiscal

2010/11. (See Annex 1).

Electricity Sector

5.24 The government‟s energy policy identifies natural gas as the preferred fuel for future

generation capacity in order to diversify the country‟s energy supply mix. The OUR

started the process for the procurement of some 480 MW of new generation capacity

over the next five years. It issued a Request for Proposal (RFP) for such capacity in

December 2010 inviting bids submission by March 2011.

5.25 In April 2010, the OUR made recommendations to the Minister of Energy and Mining

to issue a licence to Jamaica Energy Partners to develop 65.5 MW of interim capacity

at a site in West Kingston. Construction has commenced and commercial operations

are slated to begin in the first quarter of 2012. JPS commissioned their Munro wind

farm (3 MW) and licence was issued to expand Wigton wind farm by a total of 14

MW.

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5.26 The OUR is supervising the development of a Standard Offer Contract that will allow

for Distributed Generation on the Jamaica Public Service Company Limited (JPS)

network. It is expected that the draft contract will be available for public consultation

in the quarter (January – March) 2011 and should be in place for the first quarter of

2011/12. This initiative will widen competition in the generation market.

5.27 The OUR approved the annual adjustment to the JPS tariff which resulted in an overall

increase of 4.79% in the average electricity rates. The annual adjustment is for

movements in inflation and exchange rates. A number of targets were established in the

2009 approved tariff in a bid to ensure greater efficiencies and a better quality of

service to customers. Notably, JPS has commenced a programme of activities to ensure

that these efficiency targets are met. The OUR will strictly monitor the programmes.

5.28 A draft Amended and Restated Electricity Licence which makes provision for the

various conditions agreed between the majority shareholders of JPS, Marubeni and the

Government (Minority Shareholder) has been prepared. This draft will be submitted to

the Ministry of Energy and Mining for discussion and agreement with JPS early in the

next fiscal year.

5.29 The OUR is cognizant of the need for further energy studies in wind and hydro power.

There is also a need to do more research into the utilization of garbage as an energy

source. As it currently stands, the Petroleum Corporation of Jamaica (PCJ), by

Ministerial Directive, has exclusivity on the development of renewables and in a

number of instances holds the right to the information that is required for the immediate

exploitation of such resources. Given that PCJ is also interested in participating as a

competitor in the generation market this creates a significant potential for conflict of

interest. The OUR has indicated to the political executive that this is an issue that

requires immediate attention. The maintenance of this exclusivity would be

inconsistent with the philosophy enunciated in the new energy policy and in this regard,

it is expected that the requisite legislative action to address the situation will be

effected.

5.30 The work programme in the electricity sector is for the most part on track. At the same

time, for various reasons (including reordering of priorities, personnel constraints and

unplanned activities) the OUR had to adjust its timetable in order to address a number

of other significant activities in the electricity sector. These are detailed in the Status

Reports in Annex 1 under the activities in the electricity sector.

Water and Sewerage Sector

5.31 The overall focus in the water sector continues to be the importance of access to safe

and adequate water supply and the improvement of efficiency in its delivery. As

reported last year, the Minister of Water and Housing has suspended the granting of

licences to small private investors pending a review of the National Water Sector

Policy. This is still the case but discussions on a new water sector policy are advanced.

The OUR anticipates a decision before the end of fiscal year 2010/11. No objection to

proposed rates were issued based on policy for small water providers.

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5.32 In the last approved tariff for NWC, the company was given approval to collect an

additional amount from customers for purposes of rehabilitation. This fund is

classified as the K-Factor fund. Given concerns about the administration and use of

this Fund, OUR has taken on greater monitoring of the National Water Commission‟s

performance against set targets. Specifically, a “Memorandum of Understanding” has

been established to manage the programme. This will be strictly adhered to and

monitored.

Transportation Sector

5.33 There was no major activity in this sector requiring the OUR‟s attention so far this

fiscal year. The Office however awaits the proposed amendment to the Transport

Authority Act to fully transfer the economic regulation of the sector to the OUR.

The Consumer and Public Affairs

5.34 Up to the end of October 2010, the Consumer and Public Affairs Division, which

concentrates its energies on customer appeals, accepted 111 new appeals and was

handling a total of 233 appeals with the balance carried forward from 2009. At the end

of that month, the Division had resolved 141 or 60% of the cases. The Division also

secured just over $6.2 million in credit adjustments for customers up to the end of

October. The Division with help from external consultants developed Quality of

Service Rules for the Telecommunications Sector. These draft rules have been issued

for comments from service providers and the responses are being reviewed.

5.35 The CPA continued to maintain a schedule of speaking engagements as a part of its

public education efforts. Other activities included the launch of a series of media

briefings at which the organisation will strategically disseminate information. During

2010, the Division discontinued the production of its television programme, retained

and rebranded the radio programme, introduced radio time signal messaging and

increased the frequency of the publication of its newsletter “The Regulator”. There

was also increased publication of little known consumer facts in the newspapers. More

of these little known facts are expected have been published on the 2011 calendar.

Utility Monitoring

5.36 The newly established Monitoring Division is charged with the responsibility of

ensuring that directives issued by the Office, are complied with and that the utilities

are operating efficiently. The Division since inception has been and will continue to

oversee the operation of programmes such as the K-Factor and the Electricity

Efficiency Improvement Fund. In addition it would start the publication of regular

RIAs.

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Human Resource Development

5.37 The Human Resources Division continued its programme of training and development

of staff in the year. A number of the technical staff was trained in areas of

telecommunications; gas and water. In addition the OUR participated in a number of

conferences on various topics and in a few instances making presentations that were

widely accepted and appreciated. With regard to staff development, persons were

given training in public speaking and advanced computer techniques.

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6 Management Accountability Framework (MAF)

Governance Elements

6.1 The Government in the Vision 2030 has emphasized Accountability and good

stewardship as successful traits in an organization. The matrix in Annex 2 outlines the

OUR‟s MAF.

Entity Values

6.2 The OUR will be seeking to establish a “Values and Ethics” Manual in the next fiscal

year. This will commence with proactive communication with employees about ethical

behaviour and public service values. Feedback from employees will be encouraged on

fairness, respect, satisfaction and engagement by management. This feedback will be

encouraged on an on-going basis with quarterly reviews by management.

Learning, Innovation and Change Management

6.3 If the recommendations made in the green paper submitted by the Public Sector

Transformation Unit (PSTU) are accepted, there may be need for organizational

change. The OUR will seek to manage the change through assignment of

responsibilities and support to change management practices. There will need to be

frequent reviews involving staff at all levels. In terms of training and performance

evaluations the following are agenda matters for the next three years:

The HR Department will be seeking to introduce the 360o style appraisal system

commencing in fiscal year 2011/12. This is to ensure an objective appraisal of staff

performance in that it requires: peer review; review from external customers;

review from those in senior positions as well as supervisors;

The development of a Standard Operating Processes document to be used for

purposes of training and staff development;

The Office will continue its proactive approach of building in-house capacity by a

mix of local and overseas short term training, skills transfer through working

alongside consultants as counterpart staff, participation in online training,

continued interaction and exchanges with other local or international regulatory

agencies and bodies, and, where feasible, identify and fund long-term training for

staff with specific bonding commitment to the OUR to keep the Office staff on the

cutting edge of developments within the industry;

The OUR will continue its participation in the Commonwealth

Telecommunications Organisation‟s (CTO) Programme for Development and

Training (PDT) which allows it access to training and consultancy resources at

discounted rates. The Programme requires an annual payment of £25,000. This is

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used to secure consultancy and training services from a group of consultants and

trainers who are also part of the programme.

Results and Performance

6.4 The OUR will continue its accounting and reporting of activities on a quarterly basis

to the Ministry of Finance. Support to the PIOJ will continue in the delivery of data

and other reports on an periodic basis.

6.5 Internally, the OUR has developed individual Results Agreements Plans (RAP) to be

used for purposes of training and final performance appraisals.

Accountability

6.6 The OUR has been compliant with approved financial authorities and other entities as

evidenced through the annual audited financial statements, periodic Auditor General‟s

reports and reports from the Office of the Contractor General (OCG).

6.7 The OUR also seeks to be compliant with its statutory mandate and although there are

limitations or weaknesses in the current legislation, the OUR ensures that there is

fairness and balance in its Directives.

6.8 On matters of procurement and purchasing, the OUR is already compliant with

Government procurement guidelines. There however is the need to give more attention

to other purchasing activities. A manual on purchasing guidelines will be developed

and made available for use commencing in fiscal year 2011/12.

6.9 An Audit Committee has been established and is fully functional. This will allow for

transparency as well as prudent and improved fiscal responsibilities. The OUR has

also hired an internal auditor to develop management control systems and to ensure

that proper accounting procedures are in place.

Stewardship

6.10 The OUR will be seeking to ensure that there are suitable controls in place relating to

assets, money, people services and other areas and that the underlying principles are

clear to all staff. The areas of focus will be:

Transparency in operations;

Internal policies and procedures developed to allow appropriate level of

stewardship responsibility to staff;

Management systems that provide relevant information and warning on resources,

results and controls;

Procurement and asset management procedures published;

Annual audits by external auditors; and

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Compliance with policies, regulations and legislation.

Citizen-focused Programmes

6.11 The activities of the Consumer and Public Affairs (CPA) Division are in part driven

by the work undertaken by the Regulation and Policy Division and so it will be seen

that in a number of areas the CPA Division‟s work parallels the activities to be

undertaken by that Division. This is particularly notable in respect of planned

consultation on a number of tariff applications and the development of standards.

Other activities planned are shown below:

The revision of a Citizens Charter. This is designed to strengthen citizen‟s

awareness of and participation in the OUR‟s role and function. Internal Standard

Operating Procedures are to be designed to ensure the delivery of high quality

service to customers. OUR will also be seeking to establish service level

agreements with key external stakeholders, specifically utility service providers;

An extensive public consultation programme will be developed to ensure that the

projects in the work programmes are consulted on where feasible; and

In developing or strengthening current policies and programmes, attention will be

given externally to:

Courtesy and timeliness in answering telephone calls. OUR has already

introduced the Interactive Voice Recording system – IVR which allows callers

to get a clearer picture of the process involved in lodging an appeal to the

OUR. It also allows customers to be informed of the OUR‟s role and function

if asked to “Hold”.

Using the IVR system to allow direct calls to persons, units or Divisions.

When dealing with written correspondences (including e-mails) the OUR has

developed a standard of five (5) working days to respond.

Provide reasonable notice when planning meetings or when cancelling

appointments.

Risk Management

6.12 The OUR will be developing suitable risks analysis mechanisms. These include:

Proper controls will be put in place and staff trained in mitigation procedures;

Risk based audit plans to be signed off by the Director General and the now

established Audit Committee;

A revised Code of Ethics; and

Staff trained in contingencies.

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People

6.13 An essential success factor for the according of full devolution of authority to achieve

the organization‟s performance targets, will be the design and implementation of an

appropriate level of devolution to “line authority” that will enable employees to make

operational decisions that will benefit the industry, in terms of the quality and

timeliness of service delivery.

6.14 To achieve these improvements, the Office will incorporate a De-concentration

approach within the broader Governance Accountability Framework. The Director

General will ensure that those employees providing services, be they internal or

external, are suitably empowered. This “Empowerment Strategy” forms part of this

Plan with respect to delegated financial, human resource, and administrative

authorities.

6.15 After reviewing the various functional areas, the OUR senior management team will

ensure that all employees get the necessary reinforcement through training and the

operational support required to ensure that they can make the requisite decisions on

service delivery within their respective sphere of control/authority. The Office will

document these delegations in a clear and concise manner through the signing of

authority agreements and developing Standard Operating Procedure Manuals.

6.16 As part of the Risk Management Strategy the Office will articulate how risk will be

managed and the level of tolerance for error that senior managers will accept so as to

ensure a clear understanding by each employee for the execution of the functional

responsibilities. Monitoring and evaluation of the De-concentration of Authority by

each manager/employee will be included in the GoJ Performance Monitoring &

Appraisal System (PMAS).

6.17 In order to achieve this, the Office will:

Clarify which functions will be subject to de-concentration and which will remain

at the Executive level.

Establish an operational De-concentration Policy by developing and circulating the

De-concentration Strategy to staff.

Design the De-concentration Strategy on a phased basis e.g. functional area by

functional area.

Keep any operational procedural changes or reorganization to a minimum.

Plan for a short to medium term timeframe for the de-concentration to take effect.

Establish clear operating procedures for all de-concentrated functions areas.

Transfer responsibilities and authority gradually/incrementally.

Implement a strong training programme.

Develop and circulate the Entity Risk Management Strategy.

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Linkages to the Vision 2030

6.18 The OUR‟s proposed linkages to the Vision 2030 Plan are in the following areas.

8-1: Ensure a facilitating policy, regulatory and institutional framework for

business development.

9-2: Develop a modernize public transportation system.

9-6: Expand the broadband network island-wide.

9-7: Ensure adequate and safe water supply and sanitation services.

10-1: Diversify the energy supply.

10-2: Promote energy efficiency and conservation.

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7. OUR’s WORK PLAN (2011 – 2014) AND DELIVERABLES

Assumptions and Bases

7.1 The work plan and budget as presented are predicated on a number of assumptions

regarding the operating environment and the internal structure of the OUR. The

OUR‟s success in achieving the set objectives and goals and accomplishing the

programme of work is dependent on the extent to which these assumptions hold true.

Additionally there is cognizance of a number of likely occurrences some of which it

has not been possible to make sufficient contingency arrangements. The major

assumptions regarding the work programme are:

Staff (existing and recruited) will be operating at optimal output throughout the

period of the plan.

Staff turnover will be kept to a minimum. This is critical given the elongated

learning curve that obtains for regulatory professionals.

The OUR will be operating with full devolution of authority thus being in a

position to reclassify job functions which will enable the OUR to retain its present

staff complement or attract equivalent replacements where there are losses.

The resource needs identified in the budget will be approved and met.

There will not be significant fall out or delay in the payment of regulatory fees.

That the OUR will be able to obtain regulatory fees from the transportation sector

to cover the cost of work it is called upon to do with regard to that sector.

The policy changes and the timetables for expected legislative enactments and

amendments will hold.

The regulatory environment will at the least not become more litigious than as has

been the case over the past many years.

Where necessary the OUR will be able to undertake some degree of outsourcing.

Such emergencies as arise will not be beyond the Office‟s ability to adapt and to

outsource.

The enforcement powers of the OUR will receive the necessary enhancement and

support

7.2 Over the last three years, there have been ongoing discussions surrounding the issue of

a single ICT Regulator. If the OUR is named as the ICT Regulator it will be integrally

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involved in assisting with the drafting and review of the new ICT legislation

governing the sector. If this takes place within the upcoming fiscal year there will be a

need for significant adjustment and some amount of resource redeployment. The

assumption however is that sufficient time will be allowed between the policy decision

and the implementation date for the requisite resources to be mobilised.

7.3 As regards the construction of the budget for 2011/12; 2012/2013 and 2013/2014 the

following are the major assumptions:

Inflation Rate - The budget has been developed on the assumption that the rate of

inflation during the fiscal year 2011/12 and for the periods 2012/2013 and

2013/2014 will be 6.5%.

Exchange Rate - The rate of exchange is programmed at J$88 to US$1 for the

fiscal year 2011/12 and will remain at the current rate for the succeeding two

years.

Staff Complement - For the fiscal year 2011/12, the staff complement of 58 (as

budgeted) will be maintained. It is expected that the remaining two vacant posts

will be filled by March 31, 2011. Staff additions will be dependent on whether

there are additional responsibilities particularly in the gas and petroleum sectors.

Contingencies

7.4 Two situations for which it is not possible to provide contingencies are that the OUR

may be assigned oversight responsibility for the petroleum sector and be required to

assume responsibility for regulating an emerging gas sector. The OUR considers that

there is a critical need to have focused oversight of the petroleum sector as the rates at

which fuel is procured represents a direct pass-through to electricity consumers which,

represents about 65% - 70% of the total charge for electricity. There is an overcharge

in the current structure which must be corrected. To achieve this some tax regime

correction and removal of CET would be required.

7.5 The government‟s decision to adopt natural gas as the fuel of choice for the future,

will give rise to the need for an appropriate regulatory framework. Given the natural

synergy that obtains, it is likely that the OUR might be required to assume regulatory

responsibility for this sector. Since the OUR has no authority to pre-empt or to

redeploy resources from other sector to attend to this, the assumption is that in such an

eventuality the required resources will be mobilised externally to facilitate the

establishment of this framework.

7.6 The government has established a task force that is currently examining the feasibility

of nuclear energy. It is anticipated that this programme will be able to attract support

from the International Atomic Energy Agency (IAEA) but a condition of any such

support would be the requirement for:

The passage of laws controlling the use of ionising radiation; and

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Formation of an oversight committee to monitor the transition of the facility at

UWI, Mona from a high enrichment core to a low enrichment core.

The OUR would no doubt be called upon to devote significant personnel time to this

activity and so it is among the matters that have implications for the work programme.

7.7 The PSTU has made recommendations to Parliament via a Green Paper for the SMA

to be enveloped by the OUR. The OUR has made no budgetary provisions for this on

the assumption that the entity would have already developed its own budget for FY

2011/12. Additionally, the Plan has been developed without inclusion of SMA.

However, should this recommendation become a reality the OUR will be able to make

the necessary adjustments.

Proposed Sector Activities

7.8 The details of activities in the Work Plan and the time period allocated for each

activity are provided at Annex 4. The activities are laid out by sectors. The Division

taking the lead role in their implementation is also identified.

7.9 The work plan deals specifically with the core regulatory activities of the OUR and

generally sets out the Office‟s planned interventions during the three year period for

this plan. The indicative time schedules provided herein should enable the various

stakeholders to plan their own work programmes.

7.10 The OUR has developed a matrix that will enable the operators to see the broad areas

where the OUR has aligned its work programmes with the Vision 2030. This is shown

in Annex 2.

7.11 In respect of each sector, the discussion of the major timetabled activity is preceded by

a discussion of the broad objectives the Office has identified for the sector for the

period, the goals it has established for itself and the strategy it proposes to adopt in

pursuing these goals.

Telecommunications Sector

Goals

7.12 The National Strategy for this sector is in expanding the broadband network island-

wide. Specifically, the strategy is to create an appropriate regulatory environment

conducive to investments in ICT and network development; promote multiple modes

of information delivery systems and networks including new wireless and wired

technologies; implement appropriate compliance measures; improve billing and

collection procedures. The OUR critical goals set out in last year‟s Plan are still on

point. These, with appropriate amendments are enumerated below:

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Ensuring that policy takes cognizance and is informed by the imperative of

convergence (to the extent of the OUR‟s influence);

Securing a regulatory framework conducive to the continued growth of the sector

and the spread of competition across all sub-sectors. The Office is cognizant that

competition has increased and whilst the market has satisfactorily dealt with some

issues, there is still the need for intervention on matters of competitive

significance. The Office will continue with its efforts at promoting a fix to the FTC

problem4;

Ensuring that the regulatory framework is facilitative of the deployment of next

generation technology and other offerings and secure clarity concerning the

treatment of new services such as VoIP;

Continue and consolidate the gains in promoting universal access to Broadband by

all including those with disabilities and address a number of existing anomalies in

the existing regime for funding universal service;

Promote international and regional connectivity and local internet exchange points

in order to increase the availability of high speed communication;

Ensuring that operators of telecommunications facilities and service providers

make reasonable provisions to allow citizens reasonable access to emergency

services;

Ensure that the relevant authorities place greater effort on cyber security;

Developing and providing policy advice to the government with respect to

legislative actions to remove barriers to competition, reduce market anomalies and

to ensure that the policy framework reflects a technology neutral environment;

Establishing a system for number administration and allocation that is fair, quick,

user interactive, transparent and can accommodate ENUM trials;

Ensure that there is robust data on the telecommunications sector to assist policy

and decision making and to inform the public; and

Developing a framework for the sharing of infrastructure facilities.

Objectives

7.13 Consistent with the goals outlined above the following are some of the more

important objectives determined by the Office for achievement within the planned

period:

Conduct a Broadband baseline data survey. The findings of this survey will inform

the development of a new Universal Service/Access Policy

Implementation of Annex E of ITU-T Recommendation E.212 which permits the

use of a Mobile Country Code and Mobile Network Code (MCC+MNC) in a

country other than the country to which the MCC has been assigned by the

4 Consequent on a finding by the Court of Appeal that there is a structural defect in the composition and

operations of the Commission which runs afoul of natural justice principles, there has been ongoing uncertainty

about that body‟s ability to address competition matters as a „first instance‟ tribunal. If the FTC adopts a

practice of investigating and bringing matters to courts rather than adjudicating (even as a temporary approach)

this may help to clear up some of the outstanding matters. The issue is important to the work of the OUR as it is

obliged to refer matters of competitive significance for the attention of the FTC.

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Director of the ITU‟s Telecommunications Standardization Bureau. The desired

outcome of this implementation is to allow greater operational efficiency for

mobile operators;

Implementation in Jamaica of secondary alternative emergency numbers (112

and/or 119) for public telecommunications networks, in accordance with ITU-T

Recommendation E.161.1 - Guidelines to select Emergency Number for public

telecommunications networks (with a view towards globally harmonized

emergency numbers); the implementation of this should also enhance the feeling

of safety and security among foreign travellers to Jamaica;

Conclude studies on the implementation of local Number Portability in Jamaica –

establishment of industry workgroup; development of migration and

implementation (MI) programme; execution of MI programme. The desired

outcome is for an increase in consumer choice and ultimately reduction in prices as

service providers compete to retain customers on their respective network;

Establishment of an automated number administration system for managing and

allocating toll free numbers. This is designed to improve operational efficiency in

number management and administration. It should also allow for easier

stakeholder access to numbering and related information;

Reconciliation of various mobile Reference Interconnection Offers (RIOs) in order

to develop a standard RIO;

Development of a Long Run Incremental Cost (LRIC) model for mobile networks

to ensure rates are developed on a cost basis using competitive indices;

Development of general rules on dispute resolution to allow for greater efficiencies

in the industry; and

Ensure that all licence holders are complying with information requirements and

payments of regulatory fees.

Strategic Approach

7.14 The strategic approach to be applied in the sector over the next three years will

include a mix of measures which include inter alia:

Conduct appropriate research in respect of benchmarking, surveys, trend

spotting, practitioner literature review, etc. to inform the Office positions and

decisions and to serve as a basis for appropriate policy recommendations to

government;

Build local and where appropriate international coalitions to lobby for an

improved policy and regulatory environment;

Continue and deepen the practice of cooperating and collaborating with other

regulators, government and multilateral institutions at the local and international

level;

The selective use of external expertise and outsourcing of analytical work as

appropriate to deal with specialised issues and to supplement the work of staff;

Identify and utilise available external sources of assistance and take full

advantage of Jamaica‟s membership in such bodies as, the ITU, CTO, IDB,

OOCUR, CTU, etc. to secure funding or reduce the costs of various regulatory

initiatives;

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Continue to build and leverage a technology platform that allows for optimum

delivery of service to internal and external customers, improved internal

efficiency and ease of interface with all stakeholders; and

Engage in closer supervision and monitoring of the sector and emphasizing strict

enforcement of the OUR‟s directives and or licensing conditions.

Major Activities

7.15 Consistent with the goals and objectives set out above, the OUR will place emphasis

on activities that are aimed at enhancing the competitive environment. Activities

funded under the current Multi-lateral Investment Fund (MIF) project will all be

completed within the budget year 2010/11. See details of funding in Table 7.1 below.

Table 7.1 MIF and USTDA Funded Projects

Development of Regulatory Framework for Submarine Cable Facilities

7.16 The United States Trade and Development Agency (USTDA) has approved funding to

provide the OUR with technical assistance to develop a regulatory framework for

international submarine landing stations and cable facilities and other associated

international facilities. The project has been extended to June 2011.

Development of Long Run Incremental Cost Model

7.17 Jamaica has seen a remarkable rise in its „teledensity‟ level since liberalisation. There

is a concern however, that a significant factor in that impressive statistic is the

ownership of multiple mobile handsets. This is a feature of markets with high cross

network termination rates and significant on-net discounts. In this regard, the OUR

intends to contract the services of a consultant to develop a Long Run Incremental

Cost model to be used to determine cost oriented termination rates. At the very least,

this will reduce the variation in termination rates across the different networks and

Institution

Focus Amount Expenditure to-

date

Balances Status

USTDA

International

submarine cable

framework.

US$290K

US$129K

US$161K

Commenced

June 2005 and

scheduled for

completion June

2011.

IDB-MIF

Competition

issues/

Institutional

strengthening.

US$500K

US$242K

US$258K

Commenced

June 2006 and

scheduled for

completion in

June 2011.

OUR

Counterpart

support-(Cash and

kind).

US$135K

US$40K

US$95K

From OUR‟s

budget.

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possibly reduce termination rates altogether. The end result should be lower retail rates

for cross network calls.

Feasibility Study for Number Portability

7.18 Number Portability is the ability of the subscriber to retain the same telephone number

when changing service providers and among other potentials benefits, reduces the

user‟s fear that they may not be reached by a contact because of the number change.

Thus, number portability can promote competition by eliminating a real or perceived

barrier to subscribers switching service providers.

7.19 The Telecommunications Act 2000 requires that before imposing the obligation on

public voice carriers to offer number portability, the OUR must first determine the

feasibility of the requirement through appropriate cost benefit and fair burden tests. To

this end the OUR engaged the services of external consultants to conduct the requisite

cost benefit analysis. This was made possible through funds received from MIF. The

consultant‟s final report will form the basis of a broader OUR consultation with

industry stakeholders, prior to any decision on number portability.

Automation of Numbering Administration Functions

7.20 Consultant services have been engaged to assist the OUR in the automation of its

numbering administration functions. The consultants commenced work in the third

week of November. The scheduled completion date is March 2011.

Establishment of Call Centre Standards

7.21 In keeping with the observation in the last plan on the growing trend among the

utilities to employ call centres to deal with a variety of customer service issues, the

OUR commenced preliminary work on the development of standards for call centre

operations. The newly established Utilities Monitoring Division will be spearheading

this exercise. The development of standards will be completed within fiscal year

2010/11.

Determination of Non-Dominance and Price Cap Regime

7.22 C&WJ (LIME) requested to be declared non-dominant, however, the process of

undertaking this assessment requires a significant amount of time and resources. The

decision has been taken to twin this activity with that of the new price cap regime. As

such, some services may be moved from the basic tariff basket and placed in the

competitive basket thereby reducing the regulatory burden on C&WJ fixed network.

This decision should be made in 2011/12.

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Other Activities in the Telecommunications Sector

7.23 Additional to the specific items identified above, the Office will inter alia continue its

on-going activities in respect of processing new telecommunications licences,

monitoring the sector to ensure compliance, providing policy advice to the

government as needed and educating consumers. Notably a significant part of the

routine work that increasingly impacts the Office‟s work programme is the review of

the quarterly and annual reports that licensees are required to submit as per the Office

decision on information requirements. The Office also expects to continue to

contribute at both the national, regional and global levels to anything or activity that

advances telecommunications in the interest of consumers. Other issues that are on the

agenda for the next three years are included in Annex I.

Electricity Sector

7.24 The national strategy for this sector is to: diversify the energy supply mix; promote

energy efficiency and conservation and implement least economic cost solutions for

the supply of energy including source, conversion and distribution.

7.25 The work programme reflects the imperatives of procuring additional capacity at least

economic cost in a sector where only generation is liberalised. Closely related to this is

the on-going challenge of ensuring Highest Quality Service (HQS) delivery in a

largely monopoly environment. To this must be added the almost systemic

uncertainties created by reliance largely on volatile fossil fuel in an island economy.

7.26 The Government has embarked on a plan to introduce natural gas as a part of the

diversification of energy supply mix for additional generating capacity. This is being

introduced as a means of achieving greater economic competitiveness and energy

diversification.

Goals

7.27 Within the parameters of Government‟s stated policy objectives, developments with

respect to the sector, and the existing regulatory framework, the goals identified for

the electricity and energy sector for the duration of this work plan are as set out below.

Lay the basis for lowering electricity cost in real terms over the next fifteen years;

Implementation of Least Economic Cost Expansion Plan (LECEP);

Lay the basis for breaking the cycle of crisis addition to generation capacity that

has been a feature of the last three decades with the procurement over the next five

years of some 480 MW of new generating capacity (replacement and additional);

Creation and maintenance of an investment environment that is facilitative of

competitive addition of least economic cost generation;

Establish firm commitments to ensuring predictability and certainty of electricity

supplies for the next ten years;

Create and enforce a system of incentives designed to reduce electricity losses;

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Attain measurable improvement in delivery of service to customers;

Diversification of fuel sources (type and sourcing);

Intensify monitoring and surveillance of JPS and other holders of licences within

the electricity sector; and

Monitor the price and procurement of fuel for power generation on most

economic cost effective basis.

Objectives

7.28 As part of the measures to support the attainment of the goals cited above, the

following objectives have been established:

Secure meaningful reductions in system losses;

Review, consult on and agree with JPS new terms and conditions of service for

customers by end of fiscal 2011/2012;

Continue the process for least cost expansion and implementation and continue the

monitoring of power purchase arrangements;

Conduct public consultations and issue a Determination on „wheeling‟ by

September 2011;

Commission periodic reviews of the merit order despatch and the exception reports;

Commission periodic monitoring of the reports from IPPs;

Consult with the public and issue a Determination on Street Works/Way Leave

Code by March 2012;

Review the fuel procurement mechanism and explore the potential for direct

procurement/sourcing of fuel by the utilities by encouraging the construction/lease

of storage facilities; and

Establish a code of practice to govern disconnections, investigation of complaints

by the utility etc..

Strategic Approach

7.29 The strategic approaches will be adopted in achieving the above objectives and

accompanying goals as summarised below:

Commission appropriate research in respect of benchmarking, surveys, trend

spotting, practitioner literature review, etc. to inform the Office on positions and

decisions and to serve as a basis for appropriate policy recommendations to the

government;

Build local and where appropriate international coalitions to lobby for an improved

policy and regulatory environment. The OUR continues to be hopeful that its

representation on the Committee to provide recommendations on the enactment of

the new electricity sector legislation will facilitate a speedier process;

Continue and deepen the practice of cooperating and collaborating with other

regulators, governments and multilateral institutions at the local and international

level;

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Seek to improve remuneration levels that will allow the Office to attract and retain

the highest level of skills and competence for the regulation of the sector;

The selective use of external expertise as appropriate to deal with specialised

issues and to supplement the work of staff;

Identify and utilise available external sources of assistance and take full advantage

of associations with such agencies as the National Association of Regulatory

Utility Commissioners (NARUC), Federal Energy Regulation Commission

(FERC), the Organisation of Caribbean Utility Regulators (OOCUR), World

Energy Forum, etc. to secure funding or reduce the costs of various regulatory

initiatives;

Monitoring, supervision and surveillance to ensure strict adherence to code,

compliance with targets and enforcement of penalties;

Enforcement of a regime of reporting requirements and the conduct of random

audits; and

Identify mechanisms to reduce the cost of fuel which is a direct pass through to the

electricity consumers.

Major Activities

Diversification of Energy Supply

7.30 Vision 2030 emphasizes the need for energy security and efficiencies. The realization

of this goal will be through diversification of the energy supply; promotion of energy

efficiency and conservation and implementation of least economic cost solutions for

the supply of energy, including source, conversion and distribution. The OUR is

facilitating this process by issuing RFP‟s for 480 MW of new capacity by 2015.

Addition of New Generating Capacity

7.31 Part of this process will be to replace older less efficient generation plants with modern

and more fuel efficient plants as well as cost efficient technologies. With this there

will also be the need to strengthen regulatory enforcement powers to ensure timely

implementation of agreed benchmarks and standards.

Wheeling

7.32 The Office is aware that there is some interest among private entities to self generate

electricity for supplies at disparate geographical locations and that this can only be

facilitated if there is in place some kind of wheeling arrangement with JPS. In view of

the potential that this holds for driving incremental expansion, creating greater

diversity and perhaps efficiencies, the Office is keen to facilitate this option. The

undertaking of this project was delayed and will be carried forward to the fiscal year

2011/12. The scheduled completion date is September 30, 2011.

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Renewable Energy

7.33 Addition of capacity from renewables is vital to achieving the objective of fuel

diversification and addressing environmental concerns - keeping in focus the revised

national energy policy objective to achieve 12.5% of total capacity in renewables by

2015 and 20% by 2030.

Quality of Service to Customers

7.34 The matter of improving service delivery to consumers is a critical objective for the

Office. The Monitoring Division will have the task of ensuring that utilities respond to

directives in a timely manner. There will be spot audits of the generation despatch

system as well as meter testing and other consumer related concerns. There will also

be strict monitoring of the service level agreements arrived at in the 2009 tariff

regime.

Introduction of Smart Meters

7.35 JPS is seeking to introduce smart meters as a part of its effort to be more efficient. The

OUR has endorsed the move and had given approval in the 2009 tariff review for the

company to collect US0.04 cents per kWh to be used to purchase these Smart Meters.

JPS is expected to collect approximately US$13 million which should be able to

purchase approximately 400,000 meters over a period of five years. The smart meters

should result in more accurate readings as well as serve as a guide to customers on

consumption at any particular time. In addition they would allow the implementation

of net billing and both supply and demand side management. The added value of

allowing consumers to plot their usage pattern is beneficial for conservation efforts.

Accounting Separation

7.36 Accounting separation is a key regulatory tool which will assist the OUR in checking

that the prices that JPS charges its customers are non-discriminatory and cost

reflective. It is also useful in the detection of cross subsidies. This project will

commence in the current budget year to be completed by June 2011.

Electricity Disaster Fund for Transmission and Distribution Assets

7.37 The Office continues to monitor the management and operation of the Electricity

Disaster Fund for Transmission and Distribution Assets with a view to ensuring that it

is adequately resourced and that the reserves are built up in the most rapid time period

to assure some satisfactory level of coverage. Rules have been developed and these are

now in force. It is anticipated that these activities will require substantial combined

inputs from Regulation and Policy, CPA and the General Counsel Divisions along

with some level of outsourcing.

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Other Activities in the Electricity Sector

7.38 The Work Plan continues to include a raft of activities that are related to the objective

of securing an environment that is conducive to the addition of new capacity for

generation on a competitive basis and the reduction of cost to consumers. In this

regard, the Office remains committed to ensuring that it holds closely to the amended

timetables set for activities such as: the implementation of accounting separation rules;

clear provisions for the monitoring of merit order dispatch; review of generation

metering codes; and establishment of transmission and distribution codes.

Water and Sewerage Sector

7.39 In the water sector the focus remains providing affordable access to potable water and

to sewerage services. An important element of this is to reduce losses and improve

efficiencies in the delivery process.

Goals

7.40 Having due regard to the government‟s stated policy goals, the existing structure of

the water and sewerage sector and the legal framework, the goals for the water and

sewerage sector are set out below:

Facilitating increased access to potable water and sewerage services in keeping

with the objective of universal access to potable water;

Encourage water conservation and provide incentive for expansion in storage

capacity;

Foster measurable improvement in service delivery with respect to the availability

and reliability of potable water and sewerage services;

Ensure that regulatory decisions regarding water and sewerage services are

cognizant of environmental issues.

Objectives

7.41 The following objectives have been agreed by the OUR to achieve the goals set out

above:

Determination of an accounting separation regime for the NWC by December

2012;

Presentation to the OUR of comprehensive scheduled reports on the „k‟ factor to

ensure strict compliance with the terms set out in the OUR‟s April 2008 decision

on NWC‟s tariff regime, the MOU (dated October 2010) and the Rules;

Presentation of comprehensive scheduled reports to the OUR on the performance

of National Irrigation Commission Projects; and

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Ensuring that small water providers are provided with incentives to maintain good

practices.

Strategic Approach

7.42 The strategic approaches are summarised below:

Employ benchmarking as appropriate. This along with the use of surveys, trend

spotting, practitioner literature review, etc. will be employed to inform the Office‟s

positions, policy recommendations and regulatory decisions;

Continue to press for the passing of the Water Supply and Sewerage Services Bill

in order to strengthen the regulatory framework for water services provisioning;

Continue to collaborate with other agencies with interest in the water sector,

notably, the Ministry of Health, NEPA and the Water Resources Authority in

order to ensure that the decisions with respect to the sector reflect all important

considerations;

Identify and utilise available external sources of assistance;

Promulgate rules and regulations to ensure consistency and certainty in the

regulation of the sector and to assure consumers of minimum quality standards;

Monitoring and surveillance to ensure strict adherence to code, compliance with

targets and enforcement of penalties;

Enforcement of reporting requirements and conduct of random audits; and

Conduct periodic audits of the NWC billing system.

Major Activities

7.43 The Work Plan reflects the regulatory imperatives that the Office has identified for the

water and sewerage sector viz, the need for a well-defined regulatory framework,

ensuring that the regulatory environment drives efficiency, increased private sector

and community involvement in the provisioning of service, universal access and

improved service delivery.

7.44 In keeping with the above priorities the Office remains mindful of its responsibility to

develop the licensing regime and regulatory framework for the diversity of service

providers consistent with government‟s policy objective and this initiative is being

pursued. Unfortunately however, it continues to be stymied by the delay in

promulgating the Water Supply and Sewerage Services Act. In this regard, the Office

remains committed to allocating the necessary resources to secure this objective.

Accounting Separation

7.45 The Office proposes to commission the development and implementation of an

accounting separation system for the NWC that will see the separation of rates for

potable water and sewerage treatment. This becomes especially important in the new

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era of private providers and the real concern that the costs of the separate activities be

clearly identifiable for rate making and other purposes.

Benchmarking Indices

7.46 An on-going activity over the period will be the collection and updating of a database

to provide the Office with appropriate benchmarking indices for the water sector.

NWC‟s K-Factor

7.47 There will also be continuous monitoring of the NWC „k‟ factor regime which will

mean monitoring of the account as well as the projects that have been approved for

expenditure from the fund.

Tariff Reviews for National Irrigation Commission

7.48 Review of NIC applications for tariff review is now a yearly exercise and will remain

so until a Price Cap arrangement is implemented. The Office‟s activity so far has been

limited to determining the economic rates which serve as a guide to the NIC and the

government for subsidy or other associated rate setting decisions. It is anticipated that,

the Office will be called upon to review individual irrigation schemes and to

recommend rates for them.

7.49 Over the three year period the Office anticipates that on a regular, although

unscheduled basis, it will be called upon to process licences and make

recommendations for new private providers and respond to rate applications from

existing and new providers for potable water and sewerage disposal. Although it is not

possible to accurately anticipate the time and level of efforts that will be required, the

Office has made some contingencies in the work plan to cover these activities. The

details of the work-plan for this sector are attached in Annex 2

Transportation Sector

7.50 The OUR will be seeking to have the regulatory framework in place to allow it to fully

regulate the economic aspects of the sector. Currently, the OUR conducts the analysis

of proposed tariff changes and makes its recommendation to the Ministry. The

Ministry then sets the rates. The rates set are not necessarily the economic rates

prescribed by the OUR nor subsidy rates granted by Government. This therefore

results in inefficiencies in the sector.

7.51 Notably despite the extensive work that is often required on behalf of the

transportation sector, the OUR has not been able to collect the requisite regulatory

fees. This situation is untenable as the OUR is not authorised to use the resources

garnered from other sectors to support the provision of regulatory advice to the

transportation sector. The OUR will therefore take steps to ensure regulatory fees are

paid to cover the anticipated cost of future work on behalf of the transportation sector.

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8. BUDGET - FISCAL YEARS 2011/2012; 2012/2013 and 2013/2014

Overview

8.1 The budget submitted by the Office of Utilities Regulation (“OUR”) for fiscal year

2011/12 is $504m. This figure represents the net expenses of running the organization

together with the cost of replacing several capital items. The budget for the previous

year (2010/2011) was approximately $470m. The budget for 2011/2012 represents an

increase of 7% over that for the last fiscal year.

8.2 Table 1 attached, summarizes (a) the cash requirements for fiscal years 2011/2012

through to 2013/2014. (b) Table 2 provides a detailed breakout by expense items of

both the 2010/2011 and the 2011/2012 budgets showing the allocation of the

2011/2012 budget across the sectors. Table 3 indicates the capital expenditure planned

for the ensuing year.

Budget Items

Payroll and Payroll Related Expenses

8.3 In fiscal year 2010/11 the Office commissioned a review of the existing positions and

made submissions to Cabinet Office in relation to a reclassification of same. This

review considered, among other things, the remuneration package of comparators

within the various industries and in regulatory agencies. The OUR was granted an

interim adjustment for all members of staff. It is expected that subject to meeting the

stipulated accountability requirements the proposed devolution and de-concentration

initiative will allow for the OUR to offer competitive remuneration packages given the

nature of its skill set, mix and task requirements.

8.4 Total payroll costs which provides for the reclassification and filling of vacancies

amount to J$326m, an increase of 5% over the last budget. In keeping with the

government‟s stated position, no provision was made in the 2011/2012 budget for an

inflation adjustment.

8.5 Table 8.1 below provides the projected staffing levels by department for the ensuing

budget period along with the comparative figures for 2010/11. Not all the positions on

the Organization Chart or vacancies listed in Table 8.2 have yet been approved by

MOF. An Internal Auditor was recently added based on recommendations from the

newly established Audit Committee. This also forms part of the accountability

framework that the OUR will be implementing as part of the devolution of authority

exercise. The other positions represent personnel required by the OUR to effectively

carry out its duties. It is hoped that these will be approved early in the next fiscal year.

Payroll related costs which include statutory deductions and benefits for these vacant

positions are included in the budget.

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Table 8.1 - Staff Complement

Dept Budget

2010/11

Actual –

January

2010/11

Diff -

Budget v

actual

Budget

2011/12

Administration and Human Resource

(Admin/HR)

8 8 0 8

Information Technology 4 4 0 4

Regulation and Policy (R & P) 15 11 4 15

Consumer and Public Affairs (CPA) 8 8 0 8

Legal 5 5 0 5

Office 5 6 -1 6

Secretary to the Office (STTO) 4 4 0 4

Monitoring Unit 4 4 0 4

Finance 4 4 0 4

Total 57 54 3 58

Table 8.2 - Vacancies

Post Dept

Engineer (1 R & P

Legal Officer (1) R & P

Specialists (2) R & P

Training and Development

8.6 The programme of training identified in this budget is geared towards addressing the

needs of the agency and building staff capacity.

During the current fiscal year, a number of vacancies were filled including three (3)

senior management positions. The positions of Director IT and Deputy General

Counsel were filled from outside whilst the position of Director Utilities Monitoring

was filled from within the organization. Three analyst positions in the newly

established Utility Monitoring Division were filled through lateral movements within

the organization. One position of Regulatory Analyst was also filled. These changes

coupled with the recruitment expected in fiscal year 2011/12 are the factors that have

accounted for the 5% projected increase in the training budget. In addition to overseas

training, a number of training will be conducted locally through the CTO‟s training

programme. The OUR as a member of that organization will have the majority of the

costs for that training covered by its payments to the CTO.

8.7 The OUR will seek grant funding from donor agencies such as the World Bank and

the Inter-American Bank to off-set some training costs

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Foreign Travel

8.8 Overseas travel is not expected to increase significantly during fiscal year 2011/2012.

Repairs and Maintenance

8.9 The projected increase in this cost item is due mainly to inadequate provision made in

the current budget and the expected rise in repairs to furniture and fixtures as a result

of the projected staff increase.

Information Technology

8.10 This expenditure is budgeted to decrease by 31%.

Printing and Stationery

8.11 There is a projected increase of 11% in this expenditure.

Telephones

8.12 There is a projected increase of 9% in this expenditure.

General Expenses

8.13 This expenditure item is projected to increase by 21% compared to the budget of

2010/11.

Public Education and Outreach

8.14 There is a projected increase of 11% in this budgeted item primarily due to the number

of consultations that are budgeted to be undertaken in fiscal 2011/12. Consultations

will be undertaken for a number of rulemaking proposals and for other projects stated

in the work plan.

Annual Report

8.15 Costs for the production of the Annual Report are projected to decrease by 14% due

mainly to most of the preparatory work now being done internally.

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Consumer Advisory Committee on Utilities (CACU)

8.16 There is a decrease of 35% in projected expenditure for this budget item. The budget

last year included amounts for participation in the recently held OOCUR conference.

Motor Vehicle Expenses

8.17 Motor Vehicle expenses are budgeted to decrease by 38%. This is due to one of the

company vehicles being out of commission for a large part of the year.

Consultancy Services

8.18 Consultancy services are expected to increase marginally by less than one percent. A

list of the major consultancy projects planned for the year 2011/12 is provided below:

Regulation & Policy US$ K J$ K

Universal Survey - Broadband 2,000

LRIC 200 17,600

Power System Optimisation &

Network 150 13,200

Technical Audit of QOS (Q-Factor) 3,000

Bid Evaluation for 480 MW

of additional generating capacity 50 4,400

Office

Consultancy (Various Sectors) 52 4,576

It is expected that the bid fees for the 480 MW generating capacity will cover the cost of the

consultancies relating to it.

The OUR will also actively seek funding from external grant agencies

Professional and Legal Fees

8.19 Professional and legal fees have increased marginally by 6% when compared to the

budget for last fiscal year. This is due primarily to projected increases in legal fees for

external counsel relating to the litigious nature of the telecommunications sector.

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Provision has also been made for costs in the event that the OUR is unsuccessful in its

defence of the various suits.

Office Rental

8.20 There is not expected to be a significant increase in office rental in the next budget

year however, additional parking for staff will be required and as such a small increase

was added to the budget to facilitate this.

Advertising

8.21 This item is projected to increase by less than 1% over last year‟s budget as it is

expected that the OUR will have less need to advertise in this period in keeping with

the focus of the public education efforts.

Public Relations

8.22 This expenditure item is projected to decrease by 59% over last year‟s budget.

Provision was made in last year‟s budget for the OOCUR conference which the OUR

hosted in November 2010. There are no major events planned for budget year

2011/12.

Depreciation

8.23 For the purposes of producing its financial statements the OUR provides for

depreciation on its assets using the appropriate rates of the relevant asset. However,

since depreciation is not a cash item it is not included in the determination of the

OUR‟s funding needs.

Membership dues

8.24 Membership dues are projected to increase by 4% over the budget for the previous

fiscal year. Of the $17m budgeted, fees to ITU, CTO & CTU account for $15m.

Capital Expenditure

8.25 Capital Expenditure has shown a significant decrease of 36%.

Interest Earned

8.26 Interest earned is projected to increase by 50% when compared to 2010/11 budget.

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License Processing Fee

8.27 No provision was made for licence processing fees. The applications in the electricity

sector relate to the planned provisioning of 480MW of generation capacity. The

projected fees were set off against the projected costs (see section 8.3.2 below).

Allocation of Budget to Sectors

8.28 Regulatory Fees have been allocated to the different utility service sectors on a basis

that reflects the time and resources to be expended in work related to each sector. The

percentage of the budget allocated to each sector is shown in Table 8.3.

Table 8.3 Percentage Allocation of Costs to Sectors

The total amounts to be recovered from the different sectors based on the budget are

tabulated below:

Table 8.4 Allocation by Sectors

Sector J$’ Million

2010/11 2011/12

Telecommunications 225 215

Electricity 196 188

Water 87 96

Transport 9 5

Total 517 504

Telecommunications Sector

8.29 There are four main providers of Telecommunications services and a number of

smaller operators. The main providers will be allocated a portion of the budget based

on the gross revenues reflected in their audited financial statements. With regard to

small carriers the minimum fees will remain at a flat fee of $250,000. In the case of

service providers the fee will remain at $25,000.

Electricity Sector

Sector Percent contribution

2010/11 2011/12

Telecommunications 44 43

Electricity 38 37

Water 17 19

Transport 1 1

100 100

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8.30 Budgeted licence fee income projections for the electricity sector include applications

relating to the 480 MW of Generation capacity. It is projected that these fees will

offset most of the costs associated with the procurement of this generating capacity.

As regards the assessment of regulatory fees for Jamaica Public Service Co. Ltd (JPS),

this will be calculated on the revenues net of Fuel and Independent Power Producer

(IPP) charges. For this assessment, the audited financial statement for the year ending

December 2009 will be used to assess the regulatory fees.

8.31 Wigton Wind Farm, Jamaica Energy Partners and the Jamaica Broilers Group are the

IPPs required to pay regulatory fees as a licensing condition.

Water Sector

8.32 The National Irrigation Commission (NIC) is charged a fee of J$125,000. The

assessment of the regulatory fees for the National Water Commission will be net of

NIC and other small water providers.

Transport Sector

8.33 The work program proposed in this budget includes a limited amount of activities in

the transport sector. The OUR has taken legal action against the Jamaica Urban

Transit Company (JUTC) in order to collect outstanding regulatory fees. The OUR

will not allocate regulatory resources to that sector.

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9 CONCLUSION

9.1 While some of the targets defined for fiscal 2010/2011 were delayed due to unplanned

activities, the OUR is still on track to complete these projects within the fiscal year.

9.2 With regard to the next three years, the programme of work will be driven by a

number of imperatives some of which are outside of the Office‟s control. Additionally,

the OUR through a process of Change Management will be giving more attention to

areas such as risk management; staff development; accountability and stewardship.

9.3 In a bid to ensure that it is compliant with its statutory obligations while curtailing

cost, the Office has set out a Work Plan that will require optimal use of budgeted

resources. The Office will need to continue the practice of drawing on third party

services over the next three years to assist with more specialized activities.

Notwithstanding, the Office remains conscious that this is no substitute for ensuring

that it recruits and trains the requisite cadre of staff to ensure institutional

sustainability.

9.4 Among the more critical assumptions underlying the plan are:

That the legislative changes and policy initiatives on which the timetables are

based will hold;

That the policy environment will become and remain reasonably predictable and

stable;

That such emergencies as arise will not be beyond the Office‟s ability to adapt and

to outsource;

That the Office will be able to undertake a significant degree of outsourcing;

That the regulatory environment will at the very least not become more litigious

than has been the case over the last three years; and

The Office will be accorded full devolution of authority under the PSTU initiative

and will implement an appropriate de-concentration of this authority strategy to

ensure that employees are able to execute their responsibilities effectively within

the established parameters for their accountability as part of the Office‟s agreed

performance regime.

9.5 The Office is aware that the work programme and timetable could be significantly

disrupted by organisational changes; for example the proposal to establish a single

ICT regulator. Even so however, it is anticipated that if there are such changes the

transition will be smooth enough to cause minimal disruption to the programme of

work. Similarly the assumption is that if responsibility for regulation of an emerging

gas sector is passed to the OUR it will also be provided with the required resources.

As such it is envisaged that the priorities and work programmes should remain

unchanged regardless of the institutional changes.

9.6 It is accepted that the programme will be subject to such modifications as may be

required given the dynamics of the regulatory environment for each sector.

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9.7 Notably the underlying philosophy for the work programme is that there will be a

conscious attempt to stimulate competition across all sectors subject to the varying

policy and legislative frameworks. The OUR will continue its effort of placing

emphasis on monitoring and supervision and especially on quality of service.

9.8 Notably while the Office will remain neutral in terms of choice of technology it will

consciously seek to ensure that there is opportunity for the deployment of new

technology and the facilitation of innovation. The same philosophy applies with regard

to fuel sources although the OUR has to give clear regard to the government‟s policy

choices. The Office continues to expect that this Business Plan will become a tool for

measuring its achievements at each review.

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10. SUPPORTING DOCUMENTS

The following supporting documents are attached to this submission:

Figure 1 OUR‟s Organisational Chart

Annex 1 Detailed Progress/Status Report of Work Programme for Fiscal

2010/11

Annex 2 Matrix of Management Accountability Framework

Annex 3 Detailed Sector Work Plan Timetables

Table 1: Budget 2011/2012 -2012/13

Table 2: Detailed Expenses for Fiscal Year 2011/2012 with allocation to Sectors

Table 3: Details of planned Capital Expenditure for 2011/2012

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OUR organisation chart 2010

Management Plan


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Attachments

OUR Corporate Plan

2011 - 2014

Management Plan


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Annex 1

Activities During FY 2010 - 2011

Telecommunication Sector 2010/11

a) Activities on Schedule

Number Portability – The feasibility study and cost-benefit analysis in relation to

number portability for mobile and fixed line networks in Jamaica was completed

with the assistance of the Canadian Research and Consultancy firm, Intelecon. The

Office will consult on the results of the analysis and issue a decision. This should

be completed by March 2011.

Extraterritorial Use of ITU-T E.212 ‘MCC+MNC’ Numbering Resources -

The OUR issued a consultation document in the form of a Notice of Proposed Rule

Making. There were no material objections from the industry to the Office‟s

arguments and proposal for the implementation of Annex E of ITU-T

Recommendation E.212 in Jamaica. The Office will issue a Determination within

fiscal 2010/11.

Automation of the Telecommunications Information and Numbering

Administration Functions - The Office has contracted Rabion Consultancy for

the requisite consultancy service, with an agreed start date of November 18, 2010.

The design and preparation will be completed in March 2011.

Estimate of the Weighted Average Cost of Capital (WACC) for Jamaican

Telecommunications Operators- The OUR issued a Determination on the

WACC in December 2010. LIME has since applied for a reconsideration of the

Decision. This is currently being reviewed for a final Decision by the end of this

fiscal year.

Establishing Quality of Service Rules for the Jamaican Telecommunications

Sector – The draft rules are now established and have been published for

comments from all stakeholders. The Determination should be issued by March of

fiscal 2010/11.

Developing Rules for Dispute Resolution: - General rules for quick resolution of

disputes are currently being drafted and should be completed by August 2011.

Dominance in Mobile Termination – This issue was resolved with the ruling of

the Telecommunications Appeals Tribunal on May 31st 2010. The Tribunal

upheld the OUR decision affirming that it followed proper procedures, applied

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appropriate reasoning, considered all the relevant evidence and came to the correct

conclusion.

NPA Relief Planning – Initial Phase:- The initial phase of the planning process

to ensure Central Office (CO) codes and telephone numbers are always available

for use by telecommunications service providers and their consumers. This is in

anticipation of the exhaustion of the existing and the introduction of a new

Numbering Plan Area (NPA). Or area code in Jamaica. This initial phase was

completed. The second phase, an Industry consultation on the detailed plan of

activities for NPA relief, will be done in the last quarter of 2010/2011.

b) Activities with Adjusted Schedule

Indirect Access (IA): Two – Stage Dialling –The OUR expects to conclude and

issue its long delayed response to C&WJ‟s request for reconsideration of its

decision on this matter before the end of the fiscal year.

C&WJ Application for Declaration of Non-Dominance in fixed line services–

The market survey which forms a critical part of the analysis necessary to

conclude this matter was completed with respect to two services from the basic

basket in the existing Price Cap Plan. After discussions with LIME it was

concluded that the matter would be best addressed as part of the consultation for

the Price Cap Review Process. This means that the timetable for this is now linked

to the schedule for completing the price cap review.

Reference Interconnection Offer (RIO-6):- The timetable for completing this

exercise was adversely affected by delays in the provision of critical information

and requests for extension of periods for comments by stakeholders. The

completion date is now scheduled for April 2011.

The X-Factor Calculation for C&WJ (LIME) - LIME submitted its service cost

data during the first quarter of 2010. Preliminary x-factor calculation has been

completed. OUR has requested additional information to allow for further

calculations. This matter is timetabled to run concurrently with the price cap

regime.

Review of Price Cap Regime of C&WJ: - Completion of this exercise was

further delayed by a delay in submission of statistical data for the x-factor

calculation. This project is now scheduled for completion early in the next budget

year.

Regime for Short Codes – This activity involves the development and

implementation of a regime for the employment of short easily remembered

numbers for a broad range of existing and new services via text messages. All the

necessary research work has been completed, however given new developments in

the industry; the initial approach had to be revamped. The scheduled completion

date is July 2011.

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Development of Rules for International Facilities – This activity relates to the

need to ensure among other things that there is competitive access to limited or

what is generally termed „bottleneck‟ international facilities. The exercise is being

undertaken with the assistance of international consultants who are being paid by a

grant from the United States Trade Development Agency (USTDA). The

consultant has now completed five (5) of the ten (10) tasks. The OUR has since

received approval from USTDA for an extension to July 2011. The remaining

tasks are therefore scheduled for completion by June 2011. The draft rules will be

consulted on and final determination issued in December 2011.

Consultation on TSLRIC – (Redefined as an Appropriate Approach to

Costing) - The OUR acknowledges that setting tariffs based on a well-built LRIC-

model, will encourage efficient competition. It is also convinced that such a model

may contribute to help operators make efficient forward-looking investment

decisions. Some preliminary work has been done on the need for and the

appropriateness of a LRIC approach. It is proposed to extend this to a consultation

with the industry on the development of such a model for establishing

interconnection prices. The main purpose for developing the LRIC models is to

calculate the cost of fixed and mobile interconnection services. The scheduled

completion date has been shifted to June 2012.

Competitive Safeguards - The Notice of Proposed Rule Making (NPRM) for

Competitive Safeguards to address anti-competitive behaviour was first published

on June 2, 2006. At that time, the Office‟s intent was to consult jointly on

competitive safeguard rules for public voice and data markets. CWJ and Digicel

argued that the OUR has no basis in law to set rules for the data services. The

OUR took the decision to consult separately on voice and on data services.

Having issued its decision, an application for reconsideration was received from

CWJ. A final decision on the matter should be issued before the end of fiscal year

2010/2011.

Automation of Numbering Administration Functions – This project is funded

by a Multi-Lateral Investment Fund (MIF) grant from the Inter-American

Development Bank (IDB). It is intended for the automation of the regular

numbering administration tasks and the development of a suitable technical

solution for the administration of toll free numbers. The project progressed in 2010

with the engagement of the consulting firm Rabion Consultancies B.V. The overall

project completion date has been extended to June 2011

(c) Non-Scheduled Activities

In addition to the major activities summarised above, the following non-scheduled

matters also had to be attended to during the course of the fiscal year and had

implications for the work programme, the use of resources and the timetable of work:

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There were several matters before the Telecommunications Appeals Tribunal for

which affidavits had to be prepared as also time and research efforts to guide the

Legal team. This caused several delays in the completion of other work

programmes.

Providing assistance to the Office of the Prime Minister and the Department of

Telecommunications.

The Office received and processed applications for new telecommunications licenses and for

renewals of expired licences. The Minister of Telecommunications had issued a Directive to

the OUR to invite applications for two submarine cable carrier licences. Two applications

were received, processed and recommendations sent to the Office of the Prime Minister.

Representation at the international level also continued apace during the year with

participation inter alia in: the International Telecommunications Union (ITU), the Caribbean

Telecommunication Union (CTU), Organisation of Caribbean Utility Regulators (OOCUR),

Commonwealth Telecommunications Organisation (CTO) and the National Association of

Regulatory Utility Commissioners (NARUC) Conference in the U.S.

Electricity Sector 2010/11

a) Activities on Schedule and Activities Set for Completion by End of Fiscal2010/11

In keeping with the timetable established in the last Plan, the activities listed below are

either already completed, set to be completed before the end of the fiscal year or have

maintained their schedules unchanged.

Standard Offer Contract (SOC) for Net Billing: - The SOC is being prepared to

assist Jamaica in meeting its renewable energy supply targets by providing small

electricity generators with a standard pricing regime. This will lend certainty to the

process and reduce the time period between application and approval. The document is

currently being finalized and is on target to be completed in this fiscal year.

Demand Forecast & Analysis: - This involves the use of econometric modeling

methodology using historical time series economic and demographic data spanning 25 to

30 years. The Base Forecast and sensitivity analysis have been completed and this

input is used to simulate capacity requirements using the Wien Automatic System

Planning Package (WASP).

Base WASP output generated from information provided by bidders of the 480

MW RFP will be used to assess the impact on tariff and further iteration of indicative

price impact on demand. Submission of bids and evaluation of bid proposals is

expected to be completed by April 2011.

Generation & Metering Code: - This is to establish the guiding principles,

operating procedures and technical standards governing the operation of the Jamaican

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power generation system. The final draft of the document is now being reviewed with

a view to finalize in this fiscal year.

Transmission & Distribution Code: - The purpose of Transmission and Distribution

Codes is to permit the development, maintenance and operation of an efficient,

coordinated Transmission and Distribution System in Jamaica. This is tied to the

Generation Codes in the above paragraph and will be completed within the same

timeframe.

Annual Q-Factor Determination: - The OUR is now in the process of preparing the

Terms of Reference (TOR) to engage the services of a consultant to carry out an audit

of the electricity network and the outage data. This information is required to set the

baseline Q-factor targets. This will be carried forward to next budget year.

Review of Merit Order Despatch – This activity is aimed at better equipping the

Office to ensure that despatch of generators is done efficiently and on a non-

discriminatory basis. This is currently being treated as a component of the Generation

Code review exercise and therefore shares the same timetable.

b) Activities with Adjusted Schedule

Wheeling – This activity concerns the development of terms and conditions

that would allow a private entity to provide its own electricity at multiple

geographical locations transiting JPS‟ network, a scenario that is contemplated

by Condition 2 clauses 11 and 12 of the JPS All Island Electricity Licence. The

project is now scheduled to be implemented in September 2011.

Accounting Separation – The requirement for JPS to provide separate

accounts for the different areas of its business is important for inter alia: the

introduction of competition in the generation side of the market; and to provide

the Office with a better understanding of the breakdown of cost, transfer

pricing and the scope for achieving efficiencies. The task has been rescheduled

to the second half of the year 2011.

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Efficiency Improvement/Demand Side Management/Loss Reduction

In the 2009 tariff review, the OUR established new targets for the reduction of

JPS‟ system losses. The target for system losses was set at 19.5% to May 30,

2011 thereafter revised to 17.5% as of June, 2011 up to May 30, 2012. Failure

to meet these targets will result in penalties to JPS.

Additional Generation Capacity: - Jamaica Energy Partners (JEP) won the

bid to supply 65.5 MW of electricity to the national grid. They are now in the

final stages of financial arrangements. The International Financial Corporation

(IFC) has indicated that it was successful in negotiations and the final

documentation is being prepared. The procurement process for 480 MW of

electricity generating capacity has begun.

Renewable Energy:- The OUR has requested a review of the exclusive rights

granted to the Petroleum Corporation of Jamaica (PCJ) for the exploration and

development of all renewable energy sources in Jamaica. In the interim, JPS

has proceeded with its construction of a 3MW wind farm at Munro. The

project has been completed and commissioned into service.

Streetlight Protocol:-There have been several consultations with the OUR,

JPS and the Parish Councils. The OUR is working to have all matters resolved

within this fiscal year.

Code of Practice for JPS Terms & Conditions of service – There are three

main tasks that are involved here These are:

Illegal connection protocol

Meter inspection protocol; and

Rehabilitation exercise for outage prone areas.

JPS has informed that aspects of the Code are currently being implemented.

Other routine matters attended to during the year included: continued monitoring

of licence holders, review of power purchase arrangements, investigation of

various fuel options and providing policy advice on a range of electricity matters.

(c) Non-Scheduled Activities

In addition to the major activities summarised above the following non-

scheduled matters also had to be attended to during the course of the fiscal year

and had implications for the work programme, the use of resources and the

timetable of work:

Review of Price Waterhouse Coopers valuation report on JPS‟ shares

Computation of the impact that the introduction of 480 MW capacity (gas

plants) is likely to have on the average price of electricity.

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The Matter of JPS‟ claim under the Z-factor re: Hurricane Ivan now before

the Electricity Appeal Tribunal: - Response papers were prepared and

conferences held with the OUR‟s external lawyers, Dunn-Cox. The

Tribunal met on four occasions (July 14, 16, 21 & 23) 2010. Additional

Hearings have been scheduled to allow for cross-examination of witnesses.

The Tribunal met on the Matter of Workers Compensation Z-factor Claim

now before the Electricity Appeal Tribunal: - The services of Dr. Lloyd

Barnett have been sought for the new Tribunal Hearings rescheduled to

November, 2010.

Conducted analysis of the hotel sector demand charge and held discussions

with key stakeholders on the options available for bill reduction in the

industry;

Discussions with the Department of Local Government/Office of the Prime

Minister on Property tax collection strategies based on the information

carried on electricity bills.

Water and Sewerage Sector 2010/11

a. Activities Already Completed, or set to be Completed by End of Fiscal

2010/2011 or Proceeding as Scheduled

National Water Commission There has been on-going monitoring of NWC‟s

financial and operational reports; this includes Price Adjustment Mechanism

(PAM) report and the “k” factor report. The OUR recently requested an

audit of the K-factor fund. Arising from the findings, there have been

several meetings with NWC as to the continued use of these funds. The

OUR intends to ensure that the fund is used only for approved projects

The NWC‟s annual Price Adjustment Mechanism (PAM) was approved for

20.88%.

Runaway Bay Water Company had an annual PAM adjustment since its

PAM rates are aligned to the NWC‟s rate adjustment schedule.

The National Irrigation Commission was granted the option of two rates

for its Hounslow scheme. (i) an economic rate of $7.42/M3

and (ii) a

subsidized rate of 6.32/ M3.

It is to advise the Office on the rates it will

adopt.

Regulatory and Monitoring Framework for Small Water and

Sewerage Providers: - Draft rules for monitoring small water and

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sewerage providers have been developed and will be made available for

consultation within this fiscal year.

Call Centre Monitoring – A set of Performance Indicators were

forwarded by the NWC in response to the OUR‟s request. The Office is

currently reviewing these indicators to ascertain whether the proposed

standards are appropriate. Further consultations are expected with NWC

and it is anticipated that the standards will be determined before the end of

fiscal 2010/11

b. Activities with Adjusted Schedule

Accounting Separation Rules –The OUR will issue a draft consultation

document in the second quarter of fiscal 2010/11.

Consumer and Public Affairs 2010/11

Development & Implementation of Standards for the JPS & NWC Call

Centres (Call Centre Monitoring) – Key performance indicators have been

developed and are currently the subject of internal circulation. These will be

the subject of industry wide consultation before the end of fiscal 2010/11.

Consumer Protection Issues in the Water Sector - The need to undertake

this exercise has become more of an imperative given the increased presence

of private water providers. A Terms of Reference (TOR) has been developed

and is currently the subject of internal circulation. It is intended to make this

the subject of industry wide circulation before the end of the fiscal year

2010/11.

Quality of Service Standards for the Telecommunications Sector – This

project which is funded by the IDB revisits the issue of determining the need

for and designing quality of service standards for the telecommunications

sector. A consultative document has been published and the draft rules should

be made available to be tabled in Parliament in the last quarter of fiscal

2010/11.

Public Education – The OUR continued its efforts at public education during

the year.

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Annex 2

Management Accountability Framework

Component

Indicators

Means of Measurement

1 Policy and Programs

To establish and maintain transparent,

consistent and objective rules and standards

to regulate the providers of specified utility

services in the public interest to enhance

efficient utility operations and provide an

environment conducive to investments.

A work plan outlining a Plan of Action (POA) to

enhance competition, efficiency and the

investment climate in the regulated sectors

consistent with its statutory mandate.

Mechanism to assess options and the impact of the

instruments on customer welfare and investments

before and measured after their implementation.

Regulatory instruments would include one or

more of the following as necessary:

o Consultation documents

o Rules

o Orders

o Determinations

o Standards

o Regulations updated for relevance

o Customer advisory

o Reports

o Policy advice

o Performance reports on quality of service

and quality improvement index plus

Regulatory Impact Assessment Reports.

Completion of schedule and milestones for the

promulgation of instruments

Level of stakeholders involvement in the

development of regulations (quarterly review of

comments/responses).

Impact of regulations assessed on regular basis

to determine whether objectives have been met

by comparing outcome with baseline data.

(Publication of semi-annual reports).

Quality of service indices for the provision of

prescribed utility services (To be developed by

June 2011).

Competitive indices to determine level of

competition in utility services (Semi-annual

review and assessment).

Population coverage of prescribed utility

services (Quarterly publications).

Level of new investments in the utility sectors

(Annual review).

Stakeholders satisfaction surveys (Once in every

two years).

Research and analytic capacity is developed

and sustained to assure development of high

quality policy options, program design and

Recommendations are based on a review of

appropriate options and impact on the utility

industry and consumers.

Extent to which the OUR‟s plans and policies

Policy recommendations accepted by the

relevant Ministry and an appropriate

implementation schedule established once the

revision(s) are made to the legislation and/or

Management Plan


11

Component

Indicators


advice to relevant Ministries.

Legislation and mandate reflected through

regulations, directives and processes.

reflect the policy initiatives of the Government

with regards to the development of the utility

industry and the protection of its customers.

The development of results oriented and

measurable programs.

Identification of key stakeholders and evidence of

their involvement in the development of policies

and programs.

Participation in and adaptation of relevant

international policy formulation and relationship

to the OUR policy component should be clear.

regulations (Implementation schedule

established within two months of Govt.

acceptance).

Accepted Policy recommendations reflected in

operational changes within four to six months of

acceptance (supported by directives, amended

processes, staff adjustments/re-deployment and

quality data bases).

Quality of Policy recommendations are a

reflection of Senior Managements‟

understanding of changes in optional

environment.

Level of stakeholder consultation with regards to

the implications of operational changes resulting

from new policies. (Consultative documents

prepared and published. Responses made to

comments within 30 days of receipt.)

Stakeholders confidence in the quality of service.

Succession plans/staff retention (Quarterly

report).

Frequency of requests for participation in

international fora (At least three such requests).

Frequency of requests for international

collaboration, exchanges and experience sharing

(At least one request per year).

Policies and programmes are developed to

promote long-run improvements in the

efficiency of the provision of utility

services.

Efficiency targets for utility operators are

established.

Competition in the provision of utility services is

promoted where feasible.

Capability for monitoring utility services is

established.

Evidence of strategic planning.

Efficiency targets achieved (Annual reports).

Decline in real prices (Annual reports).

Monitoring reports on quality of service and

adherence to standards (Annual reports).

Improvement in total factor productivity indices

and quality of service (Annual reports).

Production and promulgation of strategic plans

and short to medium forecasts (Annually)

Management Plan


12

Component

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2 People

The people, work environment and focus is

on building capacity and leadership to assure

its success and a confident future.

Commit to decentralization of authority.

Standard Operating Procedures (SOP) used for

staff training programme.

The OUR will seek to replace the current

hierarchical approach with the team approach.

Each Project will be assigned a team leader.

Targeted training and development for staff to

obtain required competences in best practice

regulation and emerging technologies in the utility

sectors.

Structured skill transfer programme by mentorship

and peer review of work.

Opportunities to grow skills and competencies by

training, team assignments and work rotation.

Employee engagement in the development of

training plans.

Training and knowledge management geared

towards leadership continuum and knowledge

retention.

Suitable strategy in place to ensure that the OUR

recruits staff with the requisite skills and

experience.

An objective appraisal system for staff

performance that would result in recognition,

rewards or sanctions.

Increase in the quality of decisions taken by line

managers and staff.

Execution of proactive recruitment plan. (By

June 2011).

Emergence of leadership skills.

SOPs fully documented (By June 2011).

Comprehensive Human Resources Management

Strategy in place, including leadership,

recruitment, retention, succession, learning,

appropriate management training (By April

2011) Work/Life Balance, and Employment

Equity.

Reduction in staff turnover.

Training plan developed (By April 2011).

Increase in the complexity of tasks performed by

staff (By September 2011).

3 Citizen-focused Service

Services are citizen-centered, policies and Customer satisfaction survey results are reflected Number of Policy recommendations and/or

Management Plan


13

Component

Indicators


programs are developed from the "outside

in” and partnerships are encouraged and

effectively managed.

in policy recommendations and operating changes

as appropriate.

SOPs are designed to ensure the delivery of highly

quality service at all levels.

Service delivery turnaround times are reflective of

SOPs.

Memorandum of Understanding (MoU) and/or

Level of Service Agreements (LSA) with key

external stakeholders.

Citizens Charter (CC).

Mechanisms in place to receive and assess

consumer views.

Customer satisfaction level with the OUR‟s

regulating of the utility industry‟s rate charges,

levels of service and compliance to service

standards.

Increase in the use of technology to improve

delivery of service to customers.

Opportunities for stakeholders to provide inputs

and feedback on policies and programmes.

Avenues of communication established.

Stakeholders are kept up to date on issues relating

to activities in the sectors.

Adequate services are provided to customers.

operational changes that are a direct result of

customer feedback (Annual Report).

SOP‟s that accurately reflect operations (By June

2011).

SOP‟s used to ensure that quality of service

delivered is at the agreed standard.

Number of effectively working MoUs and/or

LSAs (which ensure that service delivery

turnaround times are not over extended).

Changes in operations reflected in the CC (By

July 2011).

Level of compliance with CC obligations

(Annual Report).

Increase in the utility customer s‟ level of

satisfaction with the OUR‟s regulatory

performance (Customer satisfaction survey to be

done every two years).

Reduction in the number of customer complaints

re: utility industry performances (Quarterly

reports).

Website information up-to-date.

Increase in the capability of clients to submit

basic information on-line.

Existence of consumer appeal mechanism (By

July 2011).

Client satisfaction measured every 6 months.

Client satisfaction targets and results published

in regular reports.

4 Risk Management

The executive team clearly defines the Identification of appropriate risk analysis

mechanism to determine the internal and external

Suitable risks analysis mechanism in place

(August 2011).

Management Plan


14

Component

Indicators


corporate context and practices for

managing organizational and strategic risks

proactively.

risk.

OUR risk profiles developed.

Integrated Risk Management Framework in place.

Use of benchmarks and other external measures of

tolerance for risk.

SOPs include requisite checks and balances to

manage or mitigate risk.

Policies to mitigate risks to organization‟s

independence, credibility and integrity.

OUR Personnel trained in interpreting results of

risk analysis and are able to develop applicable

scenarios to resolve issues and/or identify

meaningful options taking into consideration the

possible consequences.

Applicable controls in place and staff trained in

mitigation procedures (August 2011).

Risk based audit plans approved by DG and

Audit Committee (August 2011).

Credible Audit Plan and function is in place

(August 2011).

Recommendations of internal and external

auditors adopted by management (Within 3

months of these reports).

Ethical Code of Conduct in place

(By May 2011).

Rules of practice and procedures in place (By

May 2011).

Transparent practices and access to information

framework in place.

Existence and knowledge of contingencies.

5 Stewardship

The departmental control regime (assets,

money, people, services, etc.) is integrated

and effective, and its underlying principles

are clear to all staff.

Effective communications/public information

functions in place to ensure transparency.

Favourable reports from applicable authorities

(e.g. internal and external auditors, OCG etc.).

De-concentration of authority strategy is reflective

of required levels of stewardship.

Internal policies and procedures impose

appropriate level of stewardship responsibility to

staff. Management systems that provide relevant

information and early warning on resources,

All staff is made aware of standard stewardship

requirements (June 2011).

Annual, quarterly and monthly reports submitted

as required by the FAA and the OCG (100 %

compliance ).

Internal/External audits conducted as required

(100% compliance).

SOPs reflect the applicable stewardship

requirements (100%).

Applicable audit recommendations adopted by

management and incorporated into SOPs (Where

Management Plan


15

Component

Indicators


results and controls (Manual).

Procurement and asset management procedures

published.

Annual audits by external auditors.

Audit committee established and holds regular

review meetings.

Compliance with policies, regulations and

legislation.

Establishment of a comprehensive information

database.

practical, 100% compliance).

Decrease in the incidence of misappropriations

and/or misuse of resources (100% compliance to

audit reports).

Information management system developed and

maintained (Periodic reviews of the systems).

6 Accountability

Accountabilities for results are clearly

assigned and consistent with resources, and

delegations are appropriate to capabilities.

Introduction and use of OUR‟s Governance and

GoJ Accountability Framework.

Agreement of specific performance targets and

measurements at the individual, Division and

Agency levels in line with the de-concentration of

authority regime and OUR‟s Governance

Framework.

Performance targets based on relevant Legislation.

Regulatory Impact Assessed where necessary.

Entity specific management system that is

integrated with the GoJ requirements for

accountability associated with de-concentrated

service delivery decision-making authority.

Performance Agreements reflect corporate, Unit

and individual responsibilities within the de-

concentrated regime. (100% compliance).

Advisory Board, Procurement Committee and

Audit Committee, understand their respective

roles and provides good advice to the DG

(Quarterly reviews).

Work-Plan/budget agreed and sent to MOF

(January 31, 2011).

Regulatory cost benefit reports published (Within

3 months of findings).

ID Task Name Start Finish Duration

1 Publishing of Telecommunications Market Information Quarterly Report (EXTERNAL) Fri 01/04/11 Mon 28/04/14 802 days

2 Telecommunications market quarterly review report (INTERNAL) Fri 01/04/11 Mon 28/04/14 802 days

3 Review of Reference Interconnection Offer (RIO-6) of C&WJ (LIME) Fri 16/04/10 Wed 20/04/11 264 days?4 Draft Consultation Document Fri 16/04/10 Wed 15/12/10 174 days?

5 Internal Review of Consultation Document Wed 15/12/10 Wed 29/12/10 11 days?

6 Issue Consultation Document Wed 12/01/11 Wed 12/01/11 1 day?

7 Receive Responses Wed 12/01/11 Wed 09/02/11 21 days?

8 Receive Comment on responses Wed 09/02/11 Wed 23/02/11 11 days?

9 Draft Determination Notice Wed 23/02/11 Wed 23/03/11 21 days?

10 Internal Review of Determination Notice Wed 23/03/11 Wed 06/04/11 11 days?

11 Issue Determination Notice Wed 20/04/11 Wed 20/04/11 1 day?

12 Review of Price Cap Regime of C&WJ Mon 02/05/11 Thu 20/10/11 124 days?13 Review of Application of LIME for classification of Non- Dominance Mon 02/05/11 Wed 31/08/11 88 days

14 Draft Consultation Document Mon 02/05/11 Thu 16/06/11 34 days?

15 Internal Review of Consultation Document Thu 16/06/11 Thu 30/06/11 11 days

16 Issue Consultation Document Thu 30/06/11 Thu 30/06/11 1 day?

17 Receive Responses Thu 30/06/11 Thu 11/08/11 31 days?

18 Receive Comment on responses Thu 11/08/11 Thu 25/08/11 11 days?

19 Draft Determination Notice Thu 25/08/11 Thu 06/10/11 31 days?

20 Internal Review of Determination Notice Thu 06/10/11 Thu 20/10/11 11 days?

21 Issue Determination Notice Thu 20/10/11 Thu 20/10/11 1 day

22 Development of LRIC Model for Mobile Networks Wed 22/09/10 Mon 06/02/12 359 days?23 Draft Request for Proposal for Engagement of Consultant to Develop LRIC Model Wed 22/09/10 Wed 08/12/10 56 days?

24 Internal Review of Request for Proposal for Engagement of Consultant to Develop LRIC Model Wed 08/12/10 Wed 22/12/10 11 days

25 Issue Request for Proposal for Engagement of Consultant to Develop LRIC Model Wed 22/12/10 Wed 22/12/10 1 day?

26 Receipt of Proposals Wed 22/12/10 Tue 22/03/11 65 days?

27 Selection of Consultant Tue 22/03/11 Tue 05/04/11 11 days?

28 Workshop Tue 05/04/11 Fri 08/04/11 4 days?

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Project: Work programme_ 2010 - 201Date: Tue 01/02/11


29 Draft Consultation Document Fri 08/04/11 Fri 08/07/11 66 days?

30 Internal Review of Consultation Document Fri 08/07/11 Fri 22/07/11 11 days

31 Issue Consultation Document Fri 22/07/11 Fri 05/08/11 11 days

32 Receive Responses Fri 05/08/11 Fri 07/10/11 46 days

33 Receive Comment on responses Fri 07/10/11 Fri 11/11/11 26 days

34 Draft Determination Notice Fri 11/11/11 Fri 13/01/12 46 days

35 Internal Review of Determination Notice Fri 13/01/12 Fri 27/01/12 11 days

36 Workshop Mon 30/01/12 Fri 03/02/12 5 days?

37 Issue Determination Notice Mon 06/02/12 Mon 06/02/12 1 day

38 Determination of Mobile Termination Rates Mon 06/02/12 Mon 06/02/12 1 day

39 An Overview: Telecoms Regulatory Framework in Jamaica Tue 01/12/09 Thu 31/03/11 348 days

40 Assist Drafting of Submarine Cables Legislation/ Regulation/ Guidelines Fri 01/04/11 Thu 22/12/11 190 days

41 Review of Universal Service/ Access Provision Thu 02/06/11 Tue 22/11/11 124 days

42 Developing General Rules on Dispute Resolution Fri 01/04/11 Mon 01/08/11 87 days

43 Developing Guidelines on Sharing of Infrastructure Facilities Mon 05/03/12 Thu 23/08/12 124 days?44 Draft Consultation Document Mon 05/03/12 Thu 19/04/12 34 days?








52 Developing Rules on Unbundling of the Network Elements (Local loop) of the dominant operator - LIM Tue 08/10/13 Fri 28/03/14 124 days

53 Conduct a key stakeholder survey in Telecommunications markets and benchmark OUR's performan Tue 14/02/12 Wed 13/06/12 87 days

54 Determination of market definitions in the wholesale and retail markets Wed 04/04/12 Mon 24/09/12 124 days?55 Draft Consultation Document Wed 04/04/12 Mon 21/05/12 34 days?

56 Internal Review of Consultation Document Mon 21/05/12 Mon 04/06/12 11 days

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57 Issue Consultation Document Mon 04/06/12 Mon 04/06/12 1 day?

58 Receive Responses Mon 04/06/12 Mon 16/07/12 31 days?

59 Receive Comment on responses Mon 16/07/12 Mon 30/07/12 11 days?

60 Draft Determination Notice Mon 30/07/12 Mon 10/09/12 31 days?

61 Internal Review of Determination Notice Mon 10/09/12 Mon 24/09/12 11 days?


63 Determination of Dominance and Significant Market Power (SMP) in selected telecommunicati Mon 01/10/12 Thu 21/03/13 124 days?64 Draft Consultation Document Mon 01/10/12 Thu 15/11/12 34 days?








72 Setting up of a National Directory Database to be maintained by Telecom industry Organization unde Tue 09/04/13 Fri 27/09/13 124 days

73 Development of Regulatory Framework for Next Generation Networks Tue 08/01/13 Fri 28/06/13 124 days?74 Draft Consultation Document Tue 08/01/13 Fri 22/02/13 34 days?

75 Internal Review of Consultation Document Mon 25/02/13 Fri 08/03/13 10 days

76 Issue Consultation Document Fri 08/03/13 Fri 08/03/13 1 day?

77 Receive Responses Fri 08/03/13 Fri 19/04/13 31 days?

78 Receive Comment on responses Fri 19/04/13 Fri 03/05/13 11 days?

79 Draft Determination Notice Fri 03/05/13 Fri 14/06/13 31 days?

80 Internal Review of Determination Notice Fri 14/06/13 Fri 28/06/13 11 days?

81 Issue Determination Notice Fri 28/06/13 Fri 28/06/13 1 day

82 Review of Mobile RIOs and Harmonization of RIO Elements for Mobile Operators Tue 22/02/11 Mon 31/10/11 180 days?83 Draft Consultation Document Tue 22/02/11 Fri 20/05/11 64 days?

84 Internal Review of Consultation Document Fri 20/05/11 Mon 20/06/11 22 days

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86 Receive Responses Mon 20/06/11 Wed 20/07/11 23 days?

87 Receive Comment on responses Wed 20/07/11 Wed 03/08/11 11 days?

88 Draft Determination Notice Wed 03/08/11 Tue 27/09/11 40 days?

89 Internal Review of Determination Notice Tue 27/09/11 Mon 31/10/11 25 days?


91 Develop Indirect Access Rules for Dominant Operators Mon 02/05/11 Thu 20/10/11 124 days?92 Draft Consultation Document Mon 02/05/11 Thu 16/06/11 34 days?








100 Cost Benefit Analysis and Unfair Burden Test for Indirect Access Provision on Dominant Mobi Mon 07/11/11 Thu 26/04/12 124 days?101 Draft Consultation Document Mon 07/11/11 Thu 22/12/11 34 days?








109 Telecommunications Market Information Requirements Wed 18/07/12 Mon 07/01/13 124 days?110 Draft Consultation Document Wed 18/07/12 Mon 03/09/12 34 days?

111 Internal Review of Consultation Document Mon 03/09/12 Mon 17/09/12 11 days


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113 Receive Responses Mon 17/09/12 Mon 29/10/12 31 days?

114 Receive Comment on responses Mon 29/10/12 Mon 12/11/12 11 days?

115 Draft Determination Notice Mon 12/11/12 Mon 24/12/12 31 days?

116 Internal Review of Determination Notice Mon 24/12/12 Mon 07/01/13 11 days?


118 Policy Position on Cyber Security Mon 06/08/12 Wed 05/12/12 88 days

119 Assist Drafting of Telecoms Competition Code and Related Guidelines Wed 15/12/10 Thu 01/09/11 187 days?

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ID Task Name Start Finish

0 OUR Workplan 2011-2014 Mon 19/04/10 Thu 02/01/141 Telecoms 2011-2014 Mon 19/04/10 Thu 02/01/14

19 Automation of Numbering Administration Functions Mon 21/06/10 Wed 09/03/1126 Extraterritorial Use of E.212 Numbers Mon 26/04/10 Fri 04/03/1131 Global Emergency Numbers Mon 19/04/10 Fri 11/03/1136 Number portability (Industry Consultation) Mon 16/05/11 Fri 02/09/1141 Number portability (Rulemaking) Mon 18/04/11 Fri 22/07/1145 Regime for short codes Mon 04/04/11 Fri 15/07/1156 Number portability (Implementation) Mon 12/09/11 Fri 25/01/1361 NPA Relief Planning (Industry Consultation) Mon 14/03/11 Fri 01/07/1171 Review of National Numbering Plan and Use of E.164 Numbe Mon 03/10/11 Fri 17/02/1278 Consultation on ENUM Tue 02/04/13 Mon 30/09/1385 Harmonization of Call Disposition Indicators Mon 02/07/12 Fri 16/11/1290 Natinal Internet Exchange Points Mon 01/10/12 Fri 29/03/1396 Technical Standards for Network Operators Mon 08/04/13 Mon 09/09/1397 Plan/Conduct Industry Workshop and Analyse Outcomes Mon 08/04/13 Fri 17/05/13

98 First Consultation Document Mon 20/05/13 Fri 12/07/13

99 Responses Mon 15/07/13 Fri 23/08/13

100 Comments on Responses Mon 26/08/13 Fri 06/09/13

101 Determination Mon 09/09/13 Mon 09/09/13

102 Monitor Work in ITU-T Study Groups 2 & 13 (On-going) Fri 01/04/11 Thu 02/01/14

103 Monitor & Update Numbering Admin Systems (On-going) Fri 01/04/11 Thu 02/01/14

104 Bi-annual Numbering Resource Utlization & Forecast Fri 01/04/11 Thu 02/01/14

Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 32007 2008

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Project: OUR Workplan 2011-2014 Date: Tue 01/02/11

ID Task Name Task No Start Finish Duration

1 ELECTRICITY SECTOR WORK PLAN Mon 10/01/11 Fri 23/05/14 880 days2 1. DEMAND FORECAST & ANALYSIS Fri 28/01/11 Thu 03/02/11 5 days3 1.1 Review and Update of Forecast Fri 28/01/11 Thu 03/02/11 5 days4 Complete Second Iteration of Price Impact on Fri 28/01/11 Thu 03/02/11 5 days

5 2. GENERATION LEAST COST EVALUATION Mon 10/01/11 Fri 04/02/11 20 days6 2.1 Determination of Least Solution from 480MW Mon 10/01/11 Fri 04/02/11 20 days7 Model proposed projects in WASP Mon 10/01/11 Fri 21/01/11 10 days

8 Find Optimal Economic Expansion Plan Mon 24/01/11 Fri 28/01/11 5 days

9 Prepare Evaluation Report Mon 31/01/11 Fri 04/02/11 5 days

10 3. JPS ANNUALTARIFF ADJUSTMENT Thu 31/03/11 Fri 23/05/14 822 days11 3.1 Analyse Submission Thu 31/03/11 Fri 23/05/14 822 days12 Analyse submission (2011) Thu 31/03/11 Wed 11/05/11 30 days

13 Office Decision Thu 12/05/11 Wed 18/05/11 5 days

14 Analyse submission (2012) Fri 30/03/12 Thu 10/05/12 30 days

15 Office Decision Fri 11/05/12 Thu 17/05/12 5 days

16 Analyse submission (2013) Fri 29/03/13 Thu 09/05/13 30 days

17 Office Decision Fri 10/05/13 Thu 16/05/13 5 days

18 Analyse Submission (2014) Mon 31/03/14 Fri 16/05/14 35 days

19 Office Decision Mon 19/05/14 Fri 23/05/14 5 days

20 4. OPEN ACCESS (WHEELING) Tue 01/02/11 Thu 17/11/11 207.5 days21 4.1 Consultancy for Wheeling Charges Determi Tue 01/02/11 Mon 04/04/11 45 days22 Prepare Terms of Reference (T.O.R) for Cons Tue 01/02/11 Mon 21/02/11 15 days

23 Request Bids for Consultancy Service - Whee Tue 22/02/11 Mon 14/03/11 15 days

24 Evaluation and Award Tue 15/03/11 Mon 04/04/11 15 days

25 4.2 Prepare Consultation Document Tue 01/02/11 Thu 13/10/11 182.5 days26 Our to Develop Position Paper Tue 01/02/11 Mon 28/02/11 20 days

27 Prepare Preliminary Determination Notice Out Tue 01/03/11 Mon 25/04/11 40 days

28 Prepare Cost Analysis and Determination on A Tue 05/04/11 Mon 13/06/11 50 days

M T W T F S S M T W T F Sec '09 20 Dec '09

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Project: Elect Sector Work Plan 2010 tDate: Tue 01/02/11


29 Issue Consultation Document to JPS for Comm Tue 14/06/11 Mon 04/07/11 15 days

30 Receive & Analyse Comments on Consultatio Tue 05/07/11 Fri 29/07/11 18.75 days

31 Prepare Draft Decision Fri 29/07/11 Fri 19/08/11 15 days

32 Issue Draft Decision to Stakeholders for Comm Fri 19/08/11 Fri 16/09/11 20 days

33 Receive and Analyse Comments from Stakeho Fri 16/09/11 Thu 13/10/11 18.75 days

34 4.3 Determination Thu 13/10/11 Thu 17/11/11 25 days35 Prepare Final Documentation Thu 13/10/11 Thu 10/11/11 20 days

36 Issue Determination Thu 10/11/11 Thu 17/11/11 5 days

37 5. ACCOUNT SEPARATION Mon 04/01/10 Tue 30/12/14 1302 days38 5.1 Prepare Consultation Document Mon 07/02/11 Fri 08/04/11 45 days39 Prepare Draft Consulation Paper Mon 07/02/11 Fri 25/02/11 15 days

40 Internal Review Mon 28/02/11 Fri 18/03/11 15 days

41 Final Draft Mon 21/03/11 Fri 08/04/11 15 days

42 5.2 Consultation Mon 11/04/11 Fri 20/05/11 30 days43 Issue Document for Consultation with JPS Mon 11/04/11 Fri 29/04/11 15 days

44 Receive & Analyse Comments on Consultation Mon 02/05/11 Fri 20/05/11 15 days

45 5.3 Determination Mon 23/05/11 Fri 01/07/11 30 days46 Prepare Draft Decision Mon 23/05/11 Fri 03/06/11 10 days

47 Receive and Analyse Comments Mon 06/06/11 Fri 17/06/11 10 days

48 Issue Determination Mon 20/06/11 Fri 01/07/11 10 days

49 6. MERIT ORDER DISPATCH Mon 03/01/11 Tue 30/12/14 1042 days50 6.1 Periodic Audits of Merit Order Process Wed 01/06/11 Fri 20/06/14 798 days51 Review and Audit of Merit Order Process (201 Wed 01/06/11 Tue 07/06/11 5 days

52 Prepare report Wed 08/06/11 Tue 21/06/11 10 days

53 Review and Audit of Merit Order Process (201 Fri 01/06/12 Thu 07/06/12 5 days

54 Prepare report Fri 08/06/12 Thu 21/06/12 10 days

55 Review and Audit of Merit Order Process (201 Mon 03/06/13 Fri 07/06/13 5 days

56 Prepare report Mon 10/06/13 Fri 21/06/13 10 days


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57 Review and Audit of Merit Order Process (201 Mon 02/06/14 Fri 06/06/14 5 days

58 Prepare report Mon 09/06/14 Fri 20/06/14 10 days

59 6.2 Monitoring Mon 03/01/11 Tue 30/12/14 1042 days60 Monthly Review of Merit Order Calculation Mon 03/01/11 Tue 30/12/14 1042 days

61 Monthly Review of Exception Report Mon 03/01/11 Tue 30/12/14 1042 days

62 7. METERING CODE Mon 02/01/12 Tue 31/12/13 522 days63 7.2 Metering Code Mon 02/01/12 Tue 31/12/13 522 days64 Review of Existing Generation Code Mon 02/01/12 Fri 23/03/12 60 days

65 Draft Metering Code Review Mon 26/03/12 Fri 15/06/12 60 days

66 Provide Comments on Draft Generation Code Mon 18/06/12 Fri 17/08/12 45 days

67 Approval Final Documentation Mon 20/08/12 Fri 14/09/12 20 days

68 Ongoing Review and Monitorng Mon 17/09/12 Tue 31/12/13 337 days

69 8. JPS TERMS AND CONDITIONS OF SERVICE Mon 03/10/11 Wed 29/02/12 108 days70 Review Terms and Conditions Mon 03/10/11 Wed 29/02/12 108 days

71 9. JOINT POLE USE CODE Mon 02/04/12 Wed 05/09/12 113 days72 JPS to Develop Joint Pole Use Code Mon 02/04/12 Wed 11/07/12 40 days

73 Consultation Thu 12/07/12 Wed 08/08/12 20 days

74 Office Determination Thu 09/08/12 Wed 05/09/12 20 days

75 10. Q-FACTOR MONITORING AND REVIEW Mon 10/01/11 Thu 09/05/13 609 days76 10.1 Verification and Monitoring Thu 31/03/11 Wed 27/04/11 20 days77 Review of Outage Data Thu 31/03/11 Wed 13/04/11 10 days

78 Verification of Data Thu 14/04/11 Wed 27/04/11 10 days

79 10.2 Audit of Q-factor Data Collection Process Mon 10/01/11 Tue 29/03/11 57 days80 Establish Terms of Reference for Consultants Mon 10/01/11 Fri 21/01/11 10 days

81 Receive Bids Mon 24/01/11 Tue 01/02/11 7 days

82 Evaluation and Award Wed 02/02/11 Tue 15/02/11 10 days

83 Conduct Audit and Submit Draft Report Wed 16/02/11 Tue 15/03/11 20 days

84 Review and Evaluate Draft Audit Report Wed 16/03/11 Tue 29/03/11 10 days


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85 10.3 Annual Q factor determination Fri 01/04/11 Thu 09/05/13 550 days86 Q-Factor Determination 2011 Thu 28/04/11 Wed 11/05/11 10 days

87 Q-Factor Determination 2012 Fri 01/04/11 Wed 11/05/11 29 days

88 Q-Factor Determination 2013 Mon 02/04/12 Thu 10/05/12 29 days

89 Q-Factor Determination 2014 Mon 01/04/13 Thu 09/05/13 29 days

90 11. EFFICIENCY IMPROVEMENT/DEMAND MANEME Mon 04/01/10 Tue 12/08/14 1202 days91 11.1 Consultation Mon 04/01/10 Fri 31/12/10 260 days92 Develop Draft Rules for Loss Reduction Speci Mon 04/01/10 Fri 26/02/10 40 days

93 Consultation on Rules and Procedure for the A Mon 01/03/10 Tue 07/12/10 202 days

94 Final Rules and Procedures Wed 08/12/10 Fri 31/12/10 18 days

95 11.2 Assess Impact of Smart Metering on Syste Mon 03/01/11 Fri 04/02/11 25 days96 Evaluate and Analysew Expanded Programme Mon 03/01/11 Fri 04/02/11 25 days

97 11.3 Monitoring Mon 07/02/11 Tue 12/08/14 917 days98 Monitor Loss Reduction Targets Mon 07/02/11 Tue 12/08/14 917 days

99 Monitor and Assess Customer Consumption P Mon 07/02/11 Tue 12/08/14 917 days

100 Periodic Reports Mon 07/02/11 Tue 12/08/14 917 days

101 12. CALL CENTER MONITORING Thu 01/04/10 Tue 31/12/13 979 days

102 13. CONSUMER SURVEY Fri 01/06/12 Mon 02/09/13 327 days

103 14. REVIEW OF GUARANTEED STANDARDS Thu 01/11/12 Mon 02/12/13 283 days

104 15. FUEL RATE VALIDATION Fri 29/04/11 Tue 30/12/14 958 days105 15.1 Analyse and Validate Monthly Fuel Rate Su Fri 29/04/11 Tue 30/12/14 958 days106 Fuel Procurement and Pricing Methodology Fri 29/04/11 Tue 30/12/14 958 days

107 Verfiy IPPs Capacity and Energy Payments Fri 29/04/11 Tue 30/12/14 958 days

108 Verfify JPS and IPP Fuel Consumption Fri 29/04/11 Tue 30/12/14 958 days

109 Verify Energy Generation and Sales Fri 29/04/11 Tue 30/12/14 958 days

110 Analyse Efficiency Targets Relative to System Fri 29/04/11 Tue 30/12/14 958 days

111 Prepare Public Notice Fri 29/04/11 Tue 30/12/14 958 days

112 16. RENEWABLE ENERGY Thu 01/04/10 Mon 14/01/13 728 days


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113 16.1 Generation Procurement Process Thu 01/04/10 Wed 16/06/10 55 days114 Negotiate Energy Purchase Terms Thu 01/04/10 Wed 26/05/10 40 days

115 Finalize Licence (s) Thu 01/04/10 Wed 12/05/10 30 days

116 Finalize Contracts Thu 27/05/10 Wed 16/06/10 15 days

117 16.2 Monitoring of Project Execution Thu 17/06/10 Mon 14/01/13 673 days118 Construction Thu 17/06/10 Mon 01/10/12 598 days

119 Testing Tue 02/10/12 Mon 24/12/12 60 days

120 Commissioning Tue 25/12/12 Mon 07/01/13 10 days

121 Close Projects Tue 08/01/13 Mon 14/01/13 5 days

122 17. HEAT RATE BENEFIT FROM RENEWABLES Mon 04/07/11 Fri 30/09/11 65 days123 Consultation on how Heat Rate benefit should be s Mon 04/07/11 Fri 26/08/11 40 days

124 Determination Notice on Heat Rate Benefit Mon 29/08/11 Fri 23/09/11 20 days

125 Adjust Heat Rate Target Mon 26/09/11 Fri 30/09/11 5 days

126 18. NATURAL GAS REGULATION Mon 03/01/11 Fri 22/04/11 80 days127 Research Natural Market Structure and Regulation Mon 03/01/11 Fri 28/01/11 20 days

128 Develop Economic Regulatory Framework Mon 31/01/11 Fri 22/04/11 60 days


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ID Task Name TaskNo

Start Finish Duration

1 OUR workplan 2011-2014 Fri 01/04/11 Mon 31/03/14 782 days

2 Water Sector rules/regulation for small providers Mon 22/11/10 Tue 01/02/11 52 days

3 Published Quarterly sector Reports Fri 01/04/11 Mon 31/03/14 782 days

4 Analysis of NWC's K-FACTOR REPORTS (NWC) Fri 01/04/11 Mon 31/03/14 782 days

5 NWC Impact Tariff Mon 04/04/11 Fri 09/09/11 115 days6 Draft Consultative Document Mon 04/04/11 Fri 06/05/11 25 days

7 Internal Review of Consultative Document Mon 09/05/11 Thu 26/05/11 14 days

8 Issue Consultative Document Thu 16/06/11 Wed 27/07/11 30 days

9 Receive comments in response Tue 02/08/11 Mon 05/09/11 25 days

10 Issue Determination Mon 05/09/11 Fri 09/09/11 5 days

11 NWC Annual Adjustment Wed 02/03/11 Thu 31/03/11 22 days

12 NIC Tariff Review Mon 04/04/11 Fri 24/06/11 60 days13 Application for rates for NIDP projects Mon 04/04/11 Fri 24/06/11 60 days

14 Rate Regime - Private Providers Mon 11/04/11 Wed 03/08/11 83 days?15 CAN-CARA review of water and sewage rates Mon 11/04/11 Fri 29/04/11 15 days

16 Organize and excecute consultation (Town Meetings etc) Mon 09/05/11 Fri 13/05/11 5 days

17 Prepare Draft recommendations to R&P on consumer issues/standards Mon 06/06/11 Fri 17/06/11 10 days

18 Prepare draft Determination Mon 20/06/11 Fri 08/07/11 15 days

19 Prepare and issue final determination Thu 14/07/11 Wed 03/08/11 15 days?

20 DEML review of vineyards estate water and sewage rates Tue 01/04/14 Mon 02/06/14 45 days?21 DEML review of water and sewerage rates Tue 01/04/14 Mon 21/04/14 15 days?

22 Organize and execute consultation Tue 01/04/14 Mon 07/04/14 5 days?

23 Prepare Draft recommendations to R&P on consumer issues/standards Tue 08/04/14 Mon 21/04/14 10 days?

24 Prepare draft determination Tue 22/04/14 Mon 12/05/14 15 days?

25 Final determination Tue 13/05/14 Mon 02/06/14 15 days?

26 DEML review of caribbean estates water and sewage rates Fri 30/09/11 Tue 10/01/12 73 days?27 organize and execute consultation Fri 30/09/11 Thu 06/10/11 5 days?

28 Prepare Draft recommendations to R&P on consumer issues/standards Thu 13/10/11 Wed 02/11/11 15 days?

T W T F S S M T W T F09 13 Dec '09

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Project: shedule 2010 - 2013Date: Tue 01/02/11

ID Task Name TaskNo


29 prepare and issue final determination Wed 30/11/11 Tue 10/01/12 30 days

30 DEML review of Morris Meadows water and sewage rates Thu 09/02/12 Wed 13/06/12 90 days?

31 organize and execute consultation Fri 03/02/12 Thu 09/02/12 5 days

32 Prepare Draft recommendations to R&P on consumer issues/standards Fri 02/03/12 Thu 15/03/12 10 days

33 Prepare and issue final determination Fri 09/03/12 Thu 19/04/12 30 days

34 NWC Account Separation Wed 04/04/12 Tue 18/12/12 185 days?

35 Develop Rulemaking Proposals Mon 12/03/12 Tue 17/04/12 27 days

36 Internal Consultation Tue 17/04/12 Tue 01/05/12 11 days

37 Public Consultation Mon 02/07/12 Mon 06/08/12 26 days

38 Publish Rulemaking Proposals Fri 10/08/12 Mon 17/09/12 27 days

39 Receive and Analyse Replies Thu 20/09/12 Thu 25/10/12 26 days

40 Internal Consultation Fri 19/10/12 Wed 07/11/12 14 days

41 Publish Draft Rules Mon 12/11/12 Wed 19/12/12 28 days

42 Receive and Analyse Comments Mon 24/12/12 Fri 25/01/13 25 days

43 Issue Drafting Instructions Mon 28/01/13 Wed 06/03/13 28 days

44 NWC Tariff Review Mon 02/07/12 Fri 29/03/13 195 days?45 Organise and Execute Consultation (Town meetings, etc) Mon 02/07/12 Thu 02/08/12 24 days

46 Prepare Draft recommendations to Office on consumer issues/standards Mon 16/07/12 Fri 24/08/12 30 days

47 Internal review of rate application Mon 27/08/12 Fri 14/09/12 15 days

48 Issue draft determination Mon 17/09/12 Mon 05/11/12 36 days

49 Issue final determination Tue 06/11/12 Fri 29/03/13 104 days

50 Review existing quality of service standards Thu 02/08/12 Tue 11/09/12 29 days

51 Finalise and Implement standards Wed 12/09/12 Tue 23/10/12 30 days

52 Publish quality of service standards Thu 25/10/12 Fri 29/03/13 112 days?

53 Regulation of Small Water Companies (as necessary) Mon 11/04/11 Mon 31/03/14 776 days?

54 Position Paper on Split Supply of Water and Sewage Mon 17/10/11 Fri 17/02/12 90 days

55 Providing Advice on Policy Development Mon 04/04/11 Mon 31/03/14 781 days?

56 Regulation of Benevolent and Community Based Service Providers as necessary Mon 04/04/11 Mon 31/03/14 781 days?


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ID Task Name TaskNo


57 Audit of NWC's K-factor Account Mon 03/01/11 Fri 17/06/11 120 days

58 Feasibility study on Water Re-use Mon 01/07/13 Fri 01/11/13 90 days?


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2010/2011 Items 2011/2012 % change 2012/2013 2013/2014

Budget EXPENSES

over

2010/11 Budget Budget

223,407,864 Payroll 254,747,499 271,306,086 288,940,982

12,689,799 Statutory charges 11,735,508 12,498,317 13,310,707

40,980,720 Employee benefits 44,640,153 47,541,763 50,631,978

4,448,879 Other payroll-related costs 7,103,489 7,565,216 8,056,955

28,185,797 Increment and Merit Award 8,000,000 8,520,000 9,073,800

309,713,060 Payroll Related Costs 326,226,650 5.33 347,431,382 370,014,422

26,030,440 Training and development 27,338,050 5.02 29,115,023 31,007,500

7,641,814 Foreign travel 7,685,161 0.57 8,184,696 8,716,702

545,459 Repairs and maintenance 853,433 56.46 908,906 967,985

7,571,192 Information Technology costs 5,243,875 -30.74 5,584,726 5,947,734

1,809,746 Printing and stationery 2,000,130 10.52 2,130,138 2,268,597

1,774,236 Telephones 1,939,729 9.33 2,065,811 2,200,089

6,039,260 General expenses 7,290,189 20.71 7,764,051 8,268,715

8,628,492 Public education & outreach 9,544,000 10.61 10,164,360 10,825,043

1,163,922 Annual Report 1,000,000 -14.08 1,065,000 1,134,225

1,519,396 C.A.committee 991,705 -34.73 1,056,166 1,124,817

4,780,909 Motor vehicle expenses 2,957,739 -38.13 3,149,992 3,354,742

36,400,000 Consulting services 36,456,000 0.15 38,825,640 41,349,307

29,877,424 Professional/Legal Fees 31,784,508 6.38 33,850,501 36,050,784

20,399,116 Office rental 20,411,801 0.06 21,738,569 23,151,576

2,750,000 Advertising 2,770,000 0.73 2,950,050 3,141,803

3,708,626 Public relations 1,519,033 -59.04 1,617,770 1,722,925

395,665 Finance charges 369,463 -6.62 393,478 419,054

6,902,311 Depreciation 10,343,333 49.85 10,915,000 11,523,475

16,323,901 Membership dues 17,045,488 4.42 18,153,445 19,333,419

184,261,909 Costs other than payroll 187,543,637 1.78 199,633,324 212,508,490

493,974,969 Total expenses 513,770,287 4.01 547,064,706 582,522,912

Cash requirement:-

493,974,969 Expenses 513,770,287 4.01 547,064,706 582,522,912

-6,902,311 Less, depreciation -10,343,333 49.85 -10,915,000 -11,523,475

487,072,658 Sub-total 503,426,954 3.36 536,149,706 570,999,437

7,949,430 Capital expenditure 5,060,000 -36.35 12,650,000 13,500,000

495,022,088 Sub-total 508,486,954 2.72 548,799,706 584,499,437

Less, miscellaneous income:-

-3,000,000 Interest earned -4,500,000 50.00 -4,792,500 -5,104,013

-465,459 Other income -300,000 -35.55 -319,500 -340,268

-21,510,000 License processing fees 0 -100.00

470,046,629 Net cash requirement 503,686,954 7.16 543,687,706 579,055,157

TABLE 1

BUDGET 2011/2012

OFFICE OF UTILITIES REGULATION

Title Total Total Check --------------------------------Money----------------------------- Total %

2011/2012 Telcoms Elec. Water Transport Telcoms Elec. Water Transport 2010/2011 increase

Permanent Staff 254,158,251 254,158,251 38.85 38.43 22.03 0.69 100.00 98,746,995 97,661,411 55,996,454 1,753,391 223,086,313

Temporary Staff 589,248 589,248 38.85 38.43 22.03 0.69 100.00 228,938 226,421 129,824 4,065 321,551

Salaries (inc. gratuities) 254,747,499 254,747,499 38.85 38.43 22.03 0.69 100.00 98,975,933 97,887,832 56,126,277 1,757,456 223,407,864 14%

N.I.S. 1,393,901 1,393,901 38.85 38.43 22.03 0.69 100.00 541,566 535,612 307,106 9,616 637,490

N.H.T. 5,127,713 5,127,713 38.85 38.43 22.03 0.69 100.00 1,992,248 1,970,346 1,129,744 35,375 6,189,279

Education Tax 5,213,895 5,213,895 38.85 38.43 22.03 0.69 100.00 2,025,732 2,003,462 1,148,732 35,970 5,863,030

Statutory costs 11,735,508 11,735,508 38.85 38.43 22.03 0.69 100.00 4,559,546 4,509,420 2,585,581 80,961 12,689,799 -8%

Pension Contributions 14,531,795 14,531,795 38.85 38.43 22.03 0.69 100.00 5,645,975 5,583,905 3,201,663 100,252 11,107,500

Lunches 4,260,750 4,260,750 38.85 38.43 22.03 0.69 100.00 1,655,411 1,637,212 938,734 29,394 3,812,250

Uniforms 725,702 725,702 38.85 38.43 22.03 0.69 100.00 281,954 278,854 159,888 5,006 687,200

Clothing Allowances 2,663,400 2,663,400 38.85 38.43 22.03 0.69 100.00 1,034,799 1,023,423 586,804 18,374 2,663,400

Health Insurance 7,651,937 7,651,937 38.85 38.43 22.03 0.69 100.00 2,972,974 2,940,290 1,685,884 52,789 6,479,194

Group Life Insurance 3,072,634 3,072,634 38.85 38.43 22.03 0.69 100.00 1,193,797 1,180,673 676,966 21,198 3,154,016

Travelling Allowances 11,733,936 11,733,936 38.85 38.43 22.03 0.69 100.00 4,558,935 4,508,816 2,585,235 80,950 11,702,160

Benefits 44,640,153 44,640,153 38.85 38.43 22.03 0.69 100.00 17,343,844 17,153,173 9,835,173 307,964 40,980,720 9%

Other pay-related costs 7,103,492 7,103,492 38.74 38.58 22.02 0.66 100.00 2,751,686 2,740,440 1,564,379 46,987 4,448,879 60%

Incremental and Merit Awards 8,000,000 8,000,000 43.00 39.00 16.00 2.00 100.00 3,440,000 3,120,000 1,280,000 160,000 28,185,797 -72%

Local Training 60,000 60,000 38.85 38.43 22.03 0.69 100.00 23,312 23,055 13,219 414 6,071,500

Overseas Training 27,278,050 27,278,050 43.61 41.08 15.11 0.19 100.00 11,895,699 11,206,879 4,122,761 52,711 19,958,940

Training and development 27,338,050 27,338,050 43.60 41.08 15.13 0.19 100.00 11,919,011 11,229,934 4,135,980 53,125 26,030,440 5%

Foreign travel 7,685,161 7,685,161 44.83 42.75 11.99 0.43 100.00 3,445,023 3,285,138 921,673 33,327 7,641,814 1%

Office Equipment 188,035 188,035 38.85 38.43 22.03 0.69 100.00 73,056 72,253 41,428 1,297 264,165

Electrical System 239,398 239,398 38.85 38.43 22.03 0.69 100.00 93,012 91,990 52,744 1,652 164,348

TABLE 2


DETAILED EXPENSES FOR FISCAL YEAR 2011/2012

-------------Percentages-------------

C:\Users\Otis Laptop\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\6LVGGX6U\Adj Budget Submission 2011_12 (3)



TABLE 2



-------------Percentages-------------

Furniture and Fixtures 426,000 426,000 38.85 38.43 22.03 0.69 100.00 165,512 163,692 93,857 2,939 116,946

Repairs and maintenance 853,433 853,433 38.85 38.43 22.03 0.69 100.00 331,581 327,935 188,029 5,888 545,459 56%

Hardware maintenance 517,500 517,500 38.85 38.43 22.03 0.69 100.00 201,062 198,852 114,016 3,570 583,291

Software maintenance 2,187,959 2,187,959 36.72 39.72 22.95 0.60 100.00 803,395 869,109 502,230 13,226 2,250,693

Software purchases 308,000 308,000 38.85 38.43 22.03 0.69 100.00 119,666 118,350 67,859 2,125 2,763,000

Website maintenance 266,250 266,250 38.85 38.43 22.03 0.69 100.00 103,445 102,308 58,661 1,837 110,000

Internet access 469,410 469,410 38.85 38.43 22.03 0.69 100.00 182,378 180,373 103,421 3,238 214,847

Website hosting 0 0 0 0 0 0 54,079

Computer consumables 267,102 267,102 38.85 38.43 22.03 0.69 100.00 103,776 102,635 58,848 1,843 633,964

Information technology costs 4,016,221 4,016,221 37.69 39.13 22.53 0.64 99.99 1,513,722 1,571,626 905,035 25,839 6,820,474 -41%

Stationery - general 400,707 400,707 38.85 38.43 22.03 0.69 100.00 155,685 153,973 88,284 2,764 234,351

Stationery - printed 225,497 225,497 39.92 38.01 21.44 0.62 99.99 90,029 85,721 48,354 1,392 260,083

Computer stationery 19,756 19,756 38.85 38.42 22.03 0.69 99.99 7,676 7,591 4,353 136 115,369

Diaries 67,500 67,500 38.85 38.43 22.03 0.69 100.00 26,225 25,937 14,872 466 3,273

Printing 1,286,670 1,286,670 38.85 38.43 22.03 0.69 100.00 499,904 494,409 283,481 8,876 1,196,670

Printing and stationery 2,000,130 2,000,130 38.97 38.38 21.97 0.68 100.00 779,519 767,631 439,344 13,635 1,809,746 11%

Closed User Group 1,227,654 1,227,654 39.75 37.23 22.23 0.79 100.00 488,003 457,033 272,934 9,684 750,718

Landline Charges 1,939,729 1,939,729 36.73 39.29 23.30 0.68 100.00 712,430 762,144 452,016 13,139 1,774,236

Telephone Charges 3,167,383 3,167,383 37.90 38.49 22.89 0.72 100.00 1,200,433 1,219,177 724,950 22,824 2,524,954 25%

General expenses:-

Janitorial Services 64,522 64,522 38.85 38.43 22.03 0.69 100.00 25,068 24,793 14,216 445 64,577

Security 156,040 156,040 38.85 38.43 22.03 0.69 100.00 60,626 59,959 34,379 1,076 155,141

Small Equipment 108,534 108,534 38.90 38.41 22.00 0.69 100.00 42,224 41,686 23,873 751 113,605

Insurance - (non-vehicle) 332,044 332,044 38.85 38.43 22.03 0.69 100.00 129,008 127,589 73,156 2,291 309,355

General Expenses 1,094,770 1,094,770 33.00 35.69 30.32 0.98 99.99 361,307 390,753 331,982 10,727 739,145

Office Supplies 552,100 552,100 38.85 38.43 22.03 0.69 100.00 214,505 212,147 121,639 3,809 635,711




TABLE 2



-------------Percentages-------------

Cable Television 121,666 121,666 38.85 38.43 22.03 0.69 100.00 47,270 46,751 26,806 839 126,815

Courier Services 117,939 117,939 46.94 33.83 18.58 0.64 100.00 55,364 39,899 21,918 758 150,852

Postage 76,840 76,840 39.39 38.02 21.93 0.66 100.00 30,270 29,212 16,854 504 117,204

Local Travel 759,621 759,621 25.59 42.87 28.62 2.91 99.99 194,407 325,653 217,438 22,122 232,081

Audit Fees 1,292,500 1,292,500 38.85 38.43 22.03 0.69 100.00 502,169 496,649 284,765 8,917 1,277,250

Audit Expenses 55,820 55,820 38.85 38.43 22.03 0.69 100.00 21,688 21,449 12,298 385 50,892

Audit Committee Expenses 500,000 500,000 38.85 38.43 22.03 0.69 100.00 194,263 192,127 110,161 3,449 0

Photocopying Supplies 9,522 9,523 43.57 36.68 19.20 0.55 100.00 4,149 3,493 1,828 52 24,103

Journal subscriptions 919,980 919,980 21.99 54.97 23.00 0.04 100.00 202,296 505,699 211,626 359 616,726

Books, Literature, etc. 355,184 355,183 46.64 36.24 16.21 0.91 100.00 165,664 128,706 57,593 3,221 809,620

Management Retreat 773,104 773,106 32.85 37.62 28.28 1.25 100.00 253,950 290,871 218,630 9,654 594,683

General expenses 7,290,186 7,290,188 34.35 40.29 24.40 0.95 100.00 2,504,228 2,937,436 1,779,162 69,360 6,039,260 21%




TABLE 2



-------------Percentages-------------

Shows 360,000 360,000 21.62 48.90 29.48 0.00 100.00 77,832 176,040 106,128 0 1,152,000

Forums 1,000,000 1,000,000 21.62 48.90 29.48 0.00 100.00 216,200 489,000 294,800 0

Newspaper advertising 720,000 720,000 21.62 48.90 29.48 0.00 100.00 155,664 352,080 212,256 0 1,243,892

Sponsored radio programmes 7,464,000 7,464,000 33.33 33.33 33.33 100.00 2,488,000 2,488,000 2,488,000 0 400,000

Public education & outreach 9,544,000 9,544,000 30.78 36.73 32.49 0.00 100.00 2,937,696 3,505,120 3,101,184 0 8,628,492 11%

Annual report 1,000,000 1,000,000 38.85 38.43 22.03 0.69 100.00 388,526 384,254 220,321 6,899 1,163,922 -14%

Consumer Advisory Comm. 991,706 991,705 38.85 38.43 22.03 0.69 100.00 385,303 381,067 218,494 6,842 1,519,396 -35%

Motor vehicle expenses 2,957,740 2,957,739 38.52 36.65 23.80 1.03 100.00 1,139,376 1,084,038 703,822 30,504 4,780,909 -38%

Consultancy services 36,456,000 36,456,000 46.92 50.26 2.77 0.05 100.00 17,105,155 18,322,786 1,009,831 18,228 36,400,000 0%

Professional fees 4,548,388 4,548,388 26.89 44.19 28.60 0.32 100.00 1,223,140 2,010,028 1,300,671 14,550 555,278

Numbering fees 736,120 736,120 100.00 0.00 0.00 100.00 736,120 0 0 0 760,230

Legal fees 26,500,000 26,500,000 62.26 18.87 11.32 7.55 100.00 16,500,000 5,000,000 3,000,000 2,000,000 28,561,916

Professional/legal Fees 31,784,508 31,784,508 58.08 22.05 13.53 6.34 100.00 18,459,260 7,010,028 4,300,671 2,014,550 29,877,424 6%

Office 19,794,633 19,794,633 38.85 38.43 22.03 0.69 100.00 7,690,723 7,606,174 4,361,178 136,558 19,837,937

Parking 617,168 617,168 38.85 38.43 22.03 0.69 100.00 239,786 237,149 135,975 4,258 561,179

Office rental 20,411,801 20,411,801 38.85 38.43 22.03 0.69 100.00 7,930,509 7,843,323 4,497,153 140,816 20,399,116 0%

Advertising 2,770,000 2,770,000 38.85 38.43 22.03 0.69 100.00 1,076,217 1,064,384 610,290 19,109 2,750,000 1%




TABLE 2



-------------Percentages-------------

Visitors' expenses 596,399 596,399 38.85 38.43 22.03 0.69 100.00 231,717 229,169 131,399 4,114 110,734

Promotional items (caps, etc.) 465,000 465,000 38.85 38.43 22.03 0.69 100.00 180,664 178,678 102,449 3,208 976,747

Miscellaneous 457,633 457,633 38.85 38.43 22.03 0.69 100.00 177,802 175,847 100,826 3,157 407,145

Public relations 1,519,032 1,519,032 38.85 38.43 22.03 0.69 100.00 590,183 583,694 334,674 10,479 3,708,626 -59%

Interest 11,734 11,734 38.85 38.43 22.03 0.69 100.00 4,559 4,509 2,585 81 12,636

Bank Charges 357,729 357,729 38.85 38.43 22.03 0.69 100.00 138,987 137,459 78,815 2,468 383,029

Finance charges 369,463 369,463 38.85 38.43 22.03 0.69 100.00 143,546 141,968 81,400 2,549 395,665 -7%

Depreciation 10,343,333 10,343,333 38.85 38.43 22.03 0.69 100.00 4,018,650 3,974,471 2,278,856 71,357 6,902,311 50%

Membership subs. - general 1,873,788 1,873,788 39.56 38.25 21.49 0.70 100.00 741,277 716,790 402,647 13,074 2,152,211

ITU, CTU and CTO dues 15,171,700 15,171,700 100.00 0.00 0.00 100.00 15,171,700 0 0 0 14,171,690

Membership subscriptions 17,045,488 17,045,488 93.36 4.21 2.36 0.08 100.01 15,912,977 716,790 402,647 13,074 16,323,901 4%

Total Expenses 513,770,288 513,770,288 42.60 37.32 19.12 0.96 100.00 218,851,924 191,761,664 98,244,927 4,911,773 493,974,968 4%


# items Depn Charge U.S.$ Rate J$ J$ Telcoms Elec Water Transport Total Telcoms Elec Water Transport Total

Leasehold improv'ts: -

INFORMATION TECHNOLOGY

Laptops 4 4,000 88 352,000

Desktops 5 6,000 88 528,000

NAS High Speed Solid State 1 7,000 88 616,000

VOIP Phones Video Conferencing Sys 40 8,000 88 704,000

Video Conferencing Systems 1 3,000 88 264,000

Sub-total - IT 410,666.67 28,000 2,464,000 38.85 38.43 22.03 0.69 100.00 957,327 946,803 542,871 16,999 2,464,000

Vehicles: -

OFFICE

Vehicle - DG 29,500 88 2,596,000 2,596,000

Sub-total - Office 432,666.67 29,500 2,596,000 37.64 31.92 28.50 1.94 100.00 977,140 828,650 739,805 50,405 2,596,000

Cost of capital additions: - 843,333.33 57,500 5,060,000 38.23 35.09 25.35 1.33 100.00 1,934,467 1,775,453 1,282,676 67,404 5,060,000

Equivalent

TABLE 3

Capital Expenditure FY 2011 - 2012

Office of Utilities Regulation

--------------Allocation to sectors-------------- --------------------Allocation to sectors------------

Fixed assets to be bought in 2011/2012 ------------------Percentages---------------------- -------------------------Money---------------------------

Documents

Office of Utilities Regulation · PMEU Performance Monitoring & Evaluation Unit – Cabinet Office PPA Power Purchase Agreement ... (JEP) won the bid in 2009 and secured a Power Purchase