The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Bahamas Telecommunications Company (BTC) has complained that frequent outages and poor power quality have increased its costs and led to the "rapid failure" of critical equipment.

The communications provider, which is 49 percent owned by the Government, took a swipe at its fellow state-owned utility in demanding that the Utilities Regulation and Competition Authority (URCA) impose key performance indicators (KPIs) on Bahamas Power & Light (BPL) in similar fashion to what other Caribbean nations have done.

Participating in URCA's consultation on consumer protection regulations for the energy sector, the regulator said of BTC's response: "BTC thought it to be an opportune time for URCA to take steps towards improving the service levels as it relates to power reliability and power quality provided by the service provider to customers......

"BTC advanced that its cost for providing services had increased due to frequent outages, and suggested the use of the approach found in the electronic communications sector or the model implemented in Barbados to place BPL on a glide path to industry standard power reliability in the near future.

"BTC noted that the electricity sector consumer protection regulations focus on quality of service as it relates to customer service and satisfaction however advanced the overall customer experience is shaped by the quality of power delivered.

"Further, BTC advanced that inconsistent and poor power supply has led to rapid deterioration or failure of its equipment in advance manufacturer recommendations."

BTC then advocated for the introduction of KPIs such as System Average Interruptions Duration Index (SAIDI); System Average Interruption Frequency Index (SAIFI); and Customer Average Interruption Duration Index (CAIDI), all of which have been introduced in Barbados. However, URCA said the reporting obligations imposed on BPL had already identified the use of such KPIs.

Elsewhere, URCA revealed that while it was "sympathetic" to Bahamas Power & Light's (BPL) plight it could not be allowed to set lower customer service standards for the Family Islands. It sought to ease the state-owned utility's plight by saying it would provide a "caveat" where any deviation from service standard quality would require its approval.

The regulator's response came in response to BPL's arguments that the service standards being imposed on it were "unachievable" in the Family Islands due to the "peculiarities" of providing service in more sparsely populated areas and remote communities.

With BPL effectively calling for two standards to be applied, one for New Providence and a lesser one for the Family Islands, URCA said: "BPL understood and agreed with the need for establishing customer quality of service standards.

"However, BPL suggested that this should be done having regard to the peculiarities of the service area to which the standards shall apply. BPL stated that the Family Islands present particular challenges to the service provider, and renders the standards set out unachievable.

"BPL suggested the deferral of this portion of the regulations to allow the development of a separate document in conjunction with the service provider [itself], which includes separate standards for the Family Islands."

URCA, in reply, said it disagreed with BPL's position especially given that the utility's own "submitted and approved" Consumer Protection Plan made no attempt to differentiate between Nassau and the Family Islands and provided just one uniform standard nationwide.

"URCA does not agree with BPL’s suggestion of deferral and development of a separate document in this regard," the energy sector regulator replied. "URCA refers BPL to part nine of its Consumer Protection Plan (CPP) submitted and approved by URCA.

"The CPP’s quality of service standards contained therein makes no differentiation for the Family Islands but provide an overall standard applicable to the entire Bahamas. The consumer protection regulations includes an almost mirrored version of these standards.

"Therefore, URCA does not accept the contention by BPL that the proposed standards are unachievable in the Family Islands when a commitment to these same standards has been made through the CPP."

Having, at least initially, resisted BPL's efforts to water down customer service standards on the Family Islands, URCA then conceded ground. "URCA is sympathetic to BPL’s contention and will include a caveat to the quality of service standards schedule, which states that any deviation from these standards shall be subject to approval by URCA," it added.

"URCA considers that this caveat is reasonable to the end of balancing the interests of all relevant parties. Further, it should allow the service provider to engage with URCA in the event the standards cannot be met."