THE financial position of the Barbados Water Authority is presenting some regulatory challenges for the Fair Trading Commission (FTC) which regulates that company.
Director of Utility Regulation at the FTC, Dr. Marsha Atherley-Ikechi, made the remarks to the media while addressing the issue of standard of service which the Commission has put in place for utilities under its watch.
The Commission has mandated that under the Standard of Service regime utilities have to compensate their consumers in the event of falling short on their service delivery.
However, she told the media that because of the financial issues afflicting the BWA which is Government-owned, it has not been able to make those payments to consumers.
BWA came under the regulatory ambit of the FTC in 2016.
She noted that the Commission has had several rounds of discussions with the BWA on the business of regulation.
It was determined that standard of service would be the first way to go in terms of regulation.
According to the Director, utility regulation is such that it is dependent on circumstances, and that developing any type of policy has to be cognisant of the environment in when decisions are being made.
She explained that it was determined that the BWA was not in a position to be able to provide reimbursements to customers for failing to provide a certain level of service.
“That does not mean that BWA is not held accountable for that service,” she said.
“However, what we do not want to do is to impose hardship on the utility such that it cannot meet or it is even burdened in meeting its obligation,” Attherley-Ikechi pointed out.
As such, she went on, “It is a balancing act that has to be struck and it was determined at the time they were not in a position to be able to offer customers at least in the short for shortfall in service delivery term, any compensation.
The FTC official maintained that situation continues to be the position of the Commission even at this time. She promised it will be reviewed and that they will continue to monitor the BWA.
“At the end of the day it is the overall health of the organisation and the country as a whole that will be impacted,” she added.