The Barbados Light and Power Company Ltd Standards of Service 2018 – 2020

• Jurisdiction: Barbados
• Court: Fair Trading Commission (Barbados)
• Judgment Date: 29 September 2017
• Docket Number: Document No.: FTCUR/DECSOS/BL&P-2017-02

The Barbados Light and Power Company Limited Standards of Service 2018 – 2020

Document No.: FTCUR/DECSOS/BL&P-2017-02

FAIR TRADING COMMISSION

DECISION

Table of Contents

SECTION 1 EXECUTIVE SUMMARY	4
SECTION 2 INTRODUCTION	7
2.0 Background	7
2.1 Legislative Framework	7
2.2 Consultation Process	10
SECTION 3 ELECTRICITY SECTOR	11
SECTION 4 THE DETERMINATION	12
4.0 General	12
4.1 Guaranteed Standards of Service for the BL&P	12
4.2 Overall Standards of Service for the BL&P	20
4.3 System Reliability Indicators	23
SECTION 5 GENERAL EXEMPTIONS	27
5.0 Force Majeure	27
5.1 Other Exemptions and Conditions	27
SECTION 6 REASONS FOR DECISION	30
6.0 General	30
6.1 Amendments to the Standards of Service	30
6.2 System Reliability Indicators	38
SECTION 7 ADMINISTRATION	39
7.0 Monitoring and Enforcement of Standards	39
7.1 Public Disclosure of Information	40
7.2 Public Education	40
7.3 Implementation and Review	40

SECTION 1 EXECUTIVE SUMMARY

1 On April 3, 2017, the Fair Trading Commission (Commission) commenced the review of the Standards of Service for the Barbados Light and Power Company Limited (BL&P) Decision 2014 – 2017, in accordance with Section 4(3) of the Fair Trading Commission Act, CAP. 326B (FTCA) and Sections 3(1) and 4 of the Utilities Regulation Act, CAP. 282 (URA) of the Laws of Barbados.

2 The Commission's obligation to consult was executed by publication of the BL&P Standards of Service Consultation Paper. An invitation was extended to all stakeholders and interest groups to submit written responses by May 2, 2017. The Commission holds the view that Standards of Service are an important tool in ensuring that the BL&P provides a safe, efficient and reliable service to its customers and that intermittent review and appropriate amendment can facilitate improved performance.

3 Having completed the review process, the Commission has determined that the Standards of Service shall be amended as follows:

4 Guaranteed Standards of Service

• • The targets for Fault Repair — Customer's Service (GES 1) and Fault Repair — Distribution System (GES 2) shall be restoration of service within eight (8) hours;

• • The targets for Voltage Complaint (GES 3) categories shall be: GES 3 (a) — the BL&P is to visit the site within twenty-four (24) working hours; GES 3 (b) — provide an assessment within five (5) working days; and GES 3 (c) — resolve the issue within thirty (30) working days of receipt of complaint;

• • The target for Complex Connection (GES 5) shall be to provide a cost estimate within thirty (30) days of receipt of request;

• • The target for Connect or Transfer of Service (GES 6) shall be completion of service within fourteen (14) working hours of receipt of request;

• • The target for Reconnection (GES 7) shall be to reconnect the customer within six (6) working hours of request;

• • The targets for Response to Billing Complaints (GES 8) categories shall be: GES 8 (a) — assess and resolve billing issues where a site visit is required within ten (10) working days; and GES 8 (b) — all other issues to be resolved within three (3) working days; and

• • The target for Timely Payment of Compensation (GES 9 (New)) shall be to credit the customer's account within two (2) months from the occurrence of the breach for automatic compensation, and within two (2) months of acceptance of customer initiated claims.

5 Overall Standards of Service

• • The target for Voltage Complaint (OES 2) shall be to respond within twenty-four (24) working hours of receipt of complaint;

• • The target for Outage Notice (OES 3) shall be notification of affected customers forty-eight (48) hours before planned outage;

• • The target for Response to Complaints and Claims (OES 4) shall be all complaints and claims to be acknowledged within five (5) working days of receipt; and

• • The targets for Response to Damage Claims (OES 7 (New)) categories: OES 7 (a) -95% of oral claims to be acknowledged immediately and within five (5) working days for written claims; and OES 7 (b) -95% of written or oral claims to be settled within two (2) months of receipt.

6 System Reliability Indicators

• • The targets for reliability indices shall be:

  • — System Average Interruption Duration Index (SAIDI) — 3.68 hours/customer/year;

  • — System Average Interruption Frequency Index (SAIFI) — 5.84 outages/customer/year;

  • — Customer Average Interruption Duration Index CAIDI — 0.63 hours/customer/year; and

  • — Average System Availability Index (ASAI) (NEW) — 99.958%

7 General Administration

• • The BL&P shall comply with the following:

  • — Disseminate fault reporting and damage claim procedures to customers;

  • — Issue a tracking number to each customer reporting a fault;

  • — Publicise the Standards of Service and Claim form via its website;

  • — Advertise the Standards of Service in the media once every six months; and

  • — Include the web link to the aforementioned information on customers' utility bills.

8 All other Standards of Service not mentioned shall remain the same as that of the 2014 – 2017 Decision.

9 The Standards of Service for the BL&P shall come into effect on January 1, 2018 and continue until December 31, 2020 or until such time as a new Standards of Service Decision is issued. These Standards of Service are subject to review by the Commission, at which time amendments to the Standards, target times or compensation may be made.

SECTION 2 INTRODUCTION

2.0 Background

10 The BL&P's Standards of Service framework sets out the minimum levels of service to be provided to electricity customers. The timely review of the Standards of Service ensures that the quality of service and the service categories are appropriate and effective in achieving their intended objective of continuous improvement.

11 The purpose of a standards of service programme is: to ensure that a minimum quality of service is maintained; to provide incentives for improvement in the quality of service; to create conditions for customer satisfaction; to monitor service quality; and generally to protect the interests of consumers of electricity.

12 There are two (2) Standards of Service categories: Guaranteed Standards of Service and Overall Standards of Service. The Guaranteed Standards of Service describe the minimum service level criteria which the BL&P is required to provide to individual customers. Where the BL&P is in breach of the Guaranteed Standards of Service, the affected customer is entitled to compensation by way of credit as prescribed under each service category. The Overall Standards of Service, however, speak to service delivery at the national level. Individual customers are not compensated for breaches but where the Commission observes continued breach, it may impose penalties under the URA and the FTCA.

13 This Decision also includes details of exemptions. Exemptions refer to situations where the Commission considers that failure to meet the Standards is due to circumstances outside the control of the BL&P.

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), details the issues that may be included in the development of these Standards of Service. Together, these pieces of legislation provide the over-arching 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),…

• (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) of the URA states inter alia:

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

• (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 inter alia:

“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;

• …

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

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