Barbados Water Authority Standards of Service 2018–2020

• Jurisdiction: Barbados
• Court: Fair Trading Commission (Barbados)
• Judgment Date: 31 May 2017
• Docket Number: Document No.: FTC/URD/DECSOS/BWA-2017-01

Barbados Water Authority Standards of Service 2018–2020

Document No.: FTC/URD/DECSOS/BWA-2017-01

FAIR TRADING COMMISSION

DECISION

Table of Contents

SECTION 1 EXECUTIVE SUMMARY	4
SECTION 2 INTRODUCTION	6
2.0 Background	6
2.1 Legislative Framework	7
SECTION 3 THE DETERMINATION	12
3.0 Policy Decision	12
3.1 Guaranteed Standards of Service for the BWA	13
3.2 Guaranteed Standards of Service Definitions and Specific Exemptions	16
3.3 Compensatory Payments Claim Procedure	21
3.4 Overall Standards of Service for the BWA	21
3.5 Overall Standards of Service Definitions and Specific Exemptions	23
SECTION 4 GENERAL EXEMPTIONS	29
4.0 Force Majeure	29
4.1 Other Exemptions and Conditions	30
SECTION 5 REASONS FOR DECISION	32
SECTION 6 ADMINISTRATION	36
6.0 Monitoring and Enforcement of Standards	36
6.1 Public Disclosure of Information	37
6.2 Public Education	37
6.3 Implementation and Review	37
APPENDIX 1	38
Table 3 — Chemical Summary	38
APPENDIX II	41
Table 4 – Domestic Waste End of Pipe Standards	41
Table 5 – Petroleum Hydrocarbons End of Pipe Standards for Class 1 Water	42

SECTION 1 EXECUTIVE SUMMARY

1 In August 2014, by way of Statutory Instrument ( SI) 2014 No. 65, the Fair Trading Commission (the Commission) was given the mandate to regulate the supply of potable water and the disposal of wastewater by the Barbados Water Authority (BWA). In fulfilment of this mandate, the Commission considered it prudent to begin the regulatory process with the development of Standards of Service for the sector.

2 After conducting research, and completing consultations with the service provider and customers, the Standards of Service were developed. The Commission balanced the interests of the customers with the financial and operational constraints of the BWA in determining the specifics of these Standards of Service.

3 This has resulted in the establishment of nine (9) Guaranteed Standards of Service and twelve (12) Overall Standards of Service. Some of the Guaranteed Standards of Service are:

• • Installation of Service;

• • Response to Complaints;

• • Wrongful Disconnections;

• • Repair/ Replacement of Faulty Meter;

• • Reconnection after Payment of Overdue Amount and Reconnection Fee; and

• • Reliability of Supply.

4 The Standards of Service outline the time frame within which specific issues are to be addressed. In each instance where there is failure to meet a specific target for a Guaranteed Standard of Service, the BWA will be required to make a monetary, compensatory payment to the affected customer, except under force majeure conditions or other extenuating circumstances.

5 All claims are manual, therefore, the customer must submit the claim directly to the BWA when seeking compensation. In order to receive compensation, which will be given as a credit on the bill, customers must make their submissions within three (3) months of the occurrence.

6 In the case of the Overall Standards of Service, while there is no compensation for customers, the Commission may impose penalties when breaches occur.

7 Some of the service categories under the Overall Standards of Service include:

• • Meter Reading;

• • Reinstatement of Property;

• • Notification of Planned Interruption;

• • Potable Water Quality; and

• • Repair of Ruptured Mains.

8 The Standards of Service will be implemented from January 1, 2018. This grace period will allow the BWA to prepare its operating systems for the administration of the Standards of Service. It also affords the BWA and the Commission the opportunity to sensitise the public. These Standards of Service will remain in effect until December 31, 2020.

SECTION 2 INTRODUCTION

2.0 Background

9 This document sets out the Commission's rationale for and determination on the Standards of Service for the Barbados Water Authority (BWA), which is the entity responsible for the supply of potable water and the treatment and disposal of wastewater. The Commission holds the view that Standards of Service are an important tool in ensuring that the BWA provides a safe, efficient and reliable service to its customers.

10 The purpose of the establishment of Standards of Service is to ensure that the BWA maintains a minimum quality of service and that the necessary incentives are in place to encourage compliance and improvements in its performance over time.

11 The Utilities Regulation Act, CAP. 282 of the Laws of Barbados (URA) provides for the determination of Standards of Service by the Commission. In discharging this responsibility and being transparent in its decision making processes, the Commission consulted with the BWA, representatives of consumer interest groups and other interested parties as mandated by Section 4(4) of the Fair Trading Commission Act, CAP. 326B of the Laws of Barbados (FTCA).

12 The BWA Standards of Service, as outlined herein, shall become effective from January 1, 2018 and remain applicable until December 31, 2020.

13 The effective date of January 1, 2018, would enable the BWA to institute the appropriate measures to allow for compliance with the Standards of Service, data collection and monitoring.

2.1 Legislative Framework

Authority to Establish Standards of Service

14 According to the FTCA, “Standards of Service” is defined at Section 2 as “the quality and extent of service supplied by service providers”.

15 Section 4(3) of the FTCA and Sections 3(1) and 4 of the URA set out the Commission's authority to determine the Standards of Service for a regulated entity and the considerations that must be given when determining the same. Rule 63(2) of the Utilities Regulation Procedural Rules 2003, S.I. 2003 No.104 (URPR) of the Laws of Barbados, details the issues that may be included in the development of these Standards of Service. Together, these pieces of legislation provide the overarching framework necessary for the development and establishment of the Standards of Service for a regulated sector.

16 Section 4(3) of the FTCA states, inter alia:

“The Commission shall, in the performance of its functions and in pursuance of the objectives set out in subsections (1) and (2),

• (a) …

• (d) determine the standards of service applicable to service providers;

• (e) monitor the standards of service supplied by service providers to ensure compliance; …”

17 Section 3(1) (d), (e) and (f) of the URA states, inter alia:

“The functions of the Commission under this Act are, in relation to service providers, to

• (a) …

• (d) determine the standards of service applicable;

• (e) monitor the standards of service supplied to ensure compliance; and

• (f) carry out periodic reviews of the … standards of service.”

18 Additionally, Section 4 of the URA states:

“In determining standards of service, the Commission shall have regard to

• (a) the rates being charged by the service provider for supplying a utility service;

• (b) ensuring that consumers are provided with universal access to the services supplied by the service provider;

• (c) the national environmental policy; and

• (d) such other matters as the Commission may consider appropriate.”

19 Rule 63 (2) of the URPR speaks to issues that may be considered when setting Standards of Service. It specifically indicates that:

“Service standards may include issues such as

• (a) universality of service;

• (b) the provision of new services;

• (c) the extension of services to new customers;

• (d) the maximum response time permitted for responding to customer complaints and queries; and

• (e) standards related to service quality which are specific to each sector.”

Requirement to Consult

20 The requirement for the Commission to consult with interested parties is established at Section 4(4) of the FTCA which dictates that, when exercising its powers to determine Standards of Service, the Commission must consult with specific parties.

21 Section 4(4) of the FTCA requires that:

“The Commission shall, in performing its functions under subsection (3) (a), (b), (d) and (f) consult with the service providers, representatives of consumer interest groups and other parties that have an interest in the matter before it.”

Investigative Powers of the Commission

22 Section 26(1) (d) of the FTCA empowers the Commission to compel the BWA to produce its books and records on the request of the Commission.

23 Section 26(1) (d) of the FTCA states:

“For the purpose of the discharge of any of its functions under this Act or any law that the Commission has jurisdiction to administer the Commission shall have the power

• (a)…

• (d) to compel the production of such books, records, papers and documents as it may deem necessary or proper for any proceeding, investigation or hearing held by it;…”

Fines and Penalties

24 These Standards of Service are binding on the BWA. Sections 21, 31 and 38 of the URA, as well as Section 43 of the FTCA, prescribe the penalties that accrue where the utility fails to comply with the prescribed targets. Where there is a continuous failure to attain a target, the Commission will require an explanation from the BWA. If the BWA continues to be non-compliant, the Commission reserves the right to impose a penalty pursuant to Section 38(c) of the URA.

25 Section 21 of the URA indicates that:

“Where a service provider fails to meet prescribed standards of service, the service provider shall make to any person who is affected by the failure such...