Standards of Service for The Barbados Light & Power Company Ltd 2010 – 2013

• Jurisdiction: Barbados
• Court: Fair Trading Commission (Barbados)
• Judgment Date: 22 February 2010
• Docket Number: No: FTC/UR/2010-03

Standards of Service for The Barbados Light & Power Company Ltd. 2010 – 2013

No: FTC/UR/2010-03

Fair Trading Commission

DECISION

TABLE OF CONTENTS

SECTION 1. INTRODUCTION	3
1. BACKGROUND	3
2. LEGISLATIVE FRAMEWORK	5
SECTION 2. THE DETERMINATION	6
3. SUMMARY OF REVISIONS	6
4. GUARANTEED STANDARDS OF SERVICE	8
5. OVERALL STANDARDS OF SERVICE	14
6. GENERAL EXEMPTIONS	19
7. OTHER EXEMPTIONS AND CONDITIONS	20
8. MONITORING AND ENFORCEMENT OF STANDARDS	21
9. PUBLIC DISCLOSURE OF INFORMATION	22
10. PUBLIC EDUCATION	23
11. IMPLEMENTATION AND REVIEW	23

SECTION 1 INTRODUCTION

1. Background

1 This document sets out the Fair Trading Commission's “Commission” determination and rationale for the continuance of standards of service for the Barbados Light & Power Company Limited “BL&P”

2 The Utilities Regulation Act, CAP. 282 (URA) provides for the Commission to determine standards of service for regulated utility companies. In discharging this responsibility the Commission issued a consultation paper as mandated by the Fair Trading Commission Act, CAP. 326B (FTCA). The Consultation Paper on the Review of the Standards of Service for the Barbados Light & Power Company Limited was issued on October 29, 2008.

3 The purpose of a standards programme is to ensure that a minimum quality of service is maintained, provide incentives for improvement, create conditions for customer satisfaction, monitor service quality and generally protect the interest of electricity users.

4 The Guaranteed Standards of Service require that the BL&P make a compensatory payment to each individual customer who is affected by its failure to meet the defined target for the relevant standard.

5 Overall Standards of Service are designed to reflect the general performance of the BL&P on an island-wide basis and are not defined by the service which an individual customer receives. There is no compensation to customers for failure to meet overall standards; however the Commission has the power to impose penalties where it is apparent that the BL&P has continuously neglected to solve a given breach.

6 The standards also include details of exemptions. Exemptions refer to situations where the Commission considers that failure to meet the standards is outside the control of the BL&P.

7 Service providers, representatives of consumer interest groups and other interested parties were invited to comment on the paper. The consultation period concluded on November 28, 2008. Two written responses were received; these were from the BL&P and a consumer, Ms. Anieta Banton.

8 Having considered the data from the BL&P's Standards of Service reports over the period 2006 to the present, and the responses received and having held discussions with the BL&P, the Commission hereby sets out its determination on the review of the standards of service for the BL&P, the sole entity responsible for generation, transmission and distribution of electricity in Barbados.

9 These revised standards of service will be applicable from April 1 ^st 2010.

2. Legislative Framework

10 The functions of the Commission encompass the important aspect of the setting of standards of service Section 3(1) of the Utilities Regulation Act, CAP. 282 “URA”, states that the Commission shall, in relation to the service provider:-

• (a) determine the standards of service applicable;

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

• (c) carry out periodic reviews of the rates and principles for setting rates and standards of service.

11 The Commission therefore has responsibility for determining and monitoring the standards of service offered and carrying out periodic reviews of the standards of service for utilities under its jurisdiction.

12 Section 4 of the URA notes that 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 service supplied by the service provider;

• (c) the national environmental policy; and

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

13 Rule 63 of the Utilities Regulation (Procedural) Rules 2003, S.I. 2003 No. 104 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

• (e) Standards related to service qualities which are specific to each sector.

SECTION 2 THE DETERMINATION

3. Summary Of Revisions

14 Having considered all responses, analysed the data relating to the BL&P and publicly-available information on electricity standards of service, and compared standards from regional and extra-regional jurisdictions, the Commission believes that:

• ▪ the continued existence of Guaranteed and Overall Standards of Service for the supply of electricity service is appropriate;

• ▪ exemptions from the standards of service are appropriate under force majeure and other specified conditions.

15 The standards of service developed are specific to the BL&P and are mandatory. The following sections set out the amendments to the Guaranteed and Overall Standards of Service. This will allow for the Commission to educate the public and for the BL&P to sensitise its customers, prepare its staff and system for the administration of these revised standards of service.

3.1 Changes to the Guaranteed Standards of Service

Automatic Compensation for GES4 and GES6,

16 The Commission has determined that the BL&P shall, under the Standard of Service for Simple Service Connection (GES 4) and for Connect or Transfer Service (GES 6), automatically compensate all affected customers within three months of an incident. The compensation shall be in the form of a credit to each affected customer's account. The possible recipients are easily identifiable as direct action requests have to be made, unlike other categories.

GES1 – Restore supply after a fault on the customer's service

17 Compensatory payments are to be prorated on an hourly basis after the target time has elapsed i.e. for every hour after the target time has been exceeded the BL&P shall pay an additional 1/24 ^th of the compensatory payment amount, once a customer's claim is accepted.

GES2 – Restore supply after fault on the electrical distribution system (multiple customers)

18 Compensatory payments are to be prorated on an hourly basis after the target time has elapsed i.e. for every hour after the target time has been exceeded the BL&P shall pay an additional 1/24 ^th of the compensatory payment amount, once a customer's claim is accepted.

3.2 Changes to the Overall Standards of Service

19 The Commission has made one addition to the Overall Standards of Service to address the response time of the BL&P Customer Service Centre.

20 The Commission has also made changes to the definitions of the Overall Standard of Service for Investigation of Voltage Complaint (GES3), Reconnection of Service on settling the bill after disconnection (GES7). This will provide for a better understanding of the standard and a more efficient system.

4. Guaranteed Standards of Service

STANDARD	DESCRIPTION	TARGET	COMPENSATORY PAYMENTS
GES1 (Amended)	Restore supply after fault on customer's service (single customer)	Within 12 hours	$45.00 (Domestic) $90.00 (General Service) $215.00 Secondary Voltage Power/Large Power (SVP/LP) $45.00 for each additional 24 hours. (Domestic) $90.00 for each additional 24 hours (General Service) $215.00 for each additional 24 hours (SVP/LP) Prorated on a hourly basis
GES2 (Amended)	Restore supply after fault on the distribution system (multiple customers)	Within 12 hours	$45.00 (Domestic) $90.00 (General Service) $215.00 (SVP/LP) $45.00 for each additional 24 hours (Domestic) $90.00 for each additional 24 hours (General Service) $215.00 for each additional 24 hours (SVP/LP)) Prorated on a hourly basis
GES3	Investigation of voltage complaints	Visit within 3 working days, correct within 3 months	$45.00 (Domestic) $90.00 (General Service) $215.00 (SVP/LP).
GES4 (Amended)	Provide a simple service connection (connection point within 30 m)	Within 12 working days	Refund of installation fee Automatic compensation
GES5	Provide cost estimate for complex connection requiring a service visit	Within 3 months	$45.00 (Domestic) $90.00 (General Service.) $215.00 (SVP/LP)
GES6 (Amended)	Connect or transfer of service to an existing installation	Within 2 working days	$45.00 (Domestic) $90.00 (General Service.) $215.00 (SVP/LP) Automatic compensation
GES7 (Amended)	Reconnection of service on settling the bill after disconnection at the meter	Within 1 working day	Refund of reconnection fee
GES8	Response to billing complaints	Provide assessment within 15 working days for those complaints which the Company deems require a service visit.	$45.00 (Domestic) $90.00 (General Service). $215.00 (SVP/LP)

4.1 Definitions and Specific Exemptions

GES1 — Restore supply after a fault on the customer's service

21 Specific Exemption: Fault on customer's equipment eg: socket base, load ends, underground cable.

22 Definition — Supply is to be restored within 12 hours of it being reported to the Company. This includes problems/defects at the metering point, broken or defective service wires, low or high voltage conditions arising from service connections, which cause the interruption of supply to a single customer.

GES2 — Restore supply after fault on the electrical distribution system (multiple customers)

23 Definition — Supply should...