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_________________________________________________
CORPORATE BUSINESS PLAN & BUDGET
____________________________________________
FY 2016/17 – 2019/20
__________________________________________________________________
November 11, 2015
FOREWORD BY THE DIRECTOR-GENERAL
3
CURRENCY EQUIVALENTS
Exchange Rate Effective
Currency Unit = Jamaican Dollar
US$1.00 = JMD$ 125
FISCAL YEAR
Jamaica: April 1 – March 31
ABBREVIATIONS AND ACRONYMS
AT Appeals Tribunal
CBA Cost Benefit Analysis
CC Citizens Charter
CET Common External Tariff
CPA Consumer and Public Affairs
CTO Commonwealth Telecommunications Organisation
CTU Caribbean Telecommunications Union
Digicel Digicel Jamaica Limited
ENUM Electronic Numbering
ERP Enterprise Resource Planning
FAAA Financial Administration and Audit Act
FCA Fair Competition Act
FERC Federal Energy Regulatory Commission
FTC Fair Trading Commission
FY Fiscal Year
IAEA International Atomic Energy Agency
IACFA Independent Advisory Council on Finance and Administration
ICT Information and Communication Technology
IDTT Inter Disciplinary Transformation Team
IFC International Finance Corporation
ITU International Telecommunications Union
JEP Jamaica Energy Partners Limited
JNNP Jamaica National Numbering Plan
JPS Jamaica Public Service Company Ltd.
LAC Latin America and Caribbean
LIME Cable and Wireless Jamaica Limited
LNG Liquefied Natural Gas
LSA Level of Service Agreement
LRIC Long Run Incremental Cost
MAF Management Accountability & Governance Framework
MCC Mobile Country Codes
MNC Mobile Network Codes
MoU Memorandum of Understanding
MVNO Mobile Virtual Network Operator
MW Megawatt
NANPA North American Numbering Plan Administration
NARUC National Association of Regulatory Utility Commissioners
NEPA National Environmental and Planning Agency
NP Numbering Portability
NPRM Notice of Proposed Rule Making
NRUF Numbering Resource Utilization and Forecast
NRW Non-Revenue Water
OOCUR Organization of Caribbean Utility Regulators
OCG Office of the Contractor-General
OPM Office of the Prime Minister
OUR Office of Utilities Regulation
PBMA Public Bodies Management and Accountability Act
PCJ Petroleum Corporation of Jamaica
PIOJ Planning Institute of Jamaica
PMAS Performance Monitoring & Appraisal System (for employees)
PMES Performance Monitoring & Evaluation System (for Senior Executives)
PMEU Performance Monitoring & Evaluation Unit – Cabinet Office
PPA Power Purchase Agreement
PSTU Public Sector Transformation Unit
RDBMS Regulatory Database Management System
Responsible
Minister
The Minister with portfolio responsibility for a particular regulated
utility sector
RIO Reference Interconnection Offer
RPME Regulation Policy Monitoring & Enforcement
SOC Standard Offer Contract
SOP Standard Operating Procedures
STTO Secretary to the Office
SWOT Strengths, Weaknesses, Opportunities and Threats
TAT Telecommunications Appeal Tribunal
The Office Director-General and Deputy Directors-General of the Office of
Utilities Regulation
TSLRIC Total Service Long Run Incremental Cost
UDDP Uniform Domestic Dialling Plan
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URI Uniform Resource Identifier
USTDA United States Trade and Development Agency
UWI University of the West Indies
WRA Water Resources Authority
Table of Contents
FOREWORD BY THE DIRECTOR-GENERAL ................................................................................................................................ 2
CURRENCY EQUIVALENTS .............................................................................................................................................................. 3
ABBREVIATIONS AND ACRONYMS ................................................................................................................................................ 3
Table of Contents ..................................................................................................................................................................................... 5
EXECUTIVE SUMMARY ..................................................................................................................................................................... 7
1. THE OUR STRATEGY .................................................................................................................................................. 10
The Legislation................................................................................................................................................................... 10
Mission Statement .............................................................................................................................................................. 12
Vision ................................................................................................................................................................................. 12
Quality Policy Statement:................................................................................................................................................... 12
Quality Management System (QMS) Objectives for the Period 2015/16 – 2017/18: ........................................................ 12
Corporate Plan Theme ........................................................................................................................................................ 13
TELECOMMUNICATIONS (VOICE) SECTOR S.U.C.C.E.S.S. .................................................................................... 16
TELECOMMUNICATIONS (INTERNET/DATA) SECTOR S.U.C.C.E.S.S. ................................................................ 19
ELECTRICITY SECTOR S.U.C.C.E.S.S. ..................................................................................................................... 22
WATER (POTABLE) SECTOR S.U.C.C.E.S.S. ........................................................................................................... 25
SEWERAGE SECTOR S.U.C.C.E.S.S. ......................................................................................................................... 27
WATER (IRRIGATION) SECTOR S.U.C.C.E.S.S. ..................................................................................................... 30
Customer Value Propositions ............................................................................................................................................. 32
Strategy Statement ............................................................................................................................................................. 32
Strategy Map ...................................................................................................................................................................... 32
2016/17 - 2019/20 Sector Goals and Objectives ................................................................................................................ 33
2016/17 – 2019/20 Corporate Goals and Objectives .......................................................................................................... 39
2. OPERATIONAL FRAMEWORK (2016/2017– 2019/20) ............................................................................................. 42
The Office .......................................................................................................................................................................... 42
Department of Secretary to the Office (STTO) .................................................................................................................. 42
Office of the General Counsel (Legal Department) ........................................................................................................... 44
Regulation, Policy, Monitoring and Enforcement (RPME) Department ............................................................................ 45
Consumer and Public Affairs (CPA) Department .............................................................................................................. 46
Human Resources Development/Administration Department ........................................................................................... 48
Finance Department ........................................................................................................................................................... 48
Information Technology (IT) Department.......................................................................................................................... 49
3. STATUS REPORT AND REVIEW OF ACTIVITIES in 2015/2016 .......................................................................... 51
Electricity Sector ................................................................................................................................................................ 51
The Telecommunications Sector ........................................................................................................................................ 67
The Water Sector................................................................................................................................................................ 91
Internal Operations ........................................................................................................................................................... 101
4. OUR’s WORK PLAN (2016/17– 2019/20) AND DELIVERABLES .......................................................................... 114
Assumptions and Bases .................................................................................................................................................... 114
TELECOMMUNICATIONS SECTOR ........................................................................................................................... 115
ELECTRICITY SECTOR ................................................................................................................................................ 127
WATER, SEWERAGE AND IRRIGATION SECTOR .................................................................................................. 136
MONITORING ACTVITIES ACROSS ALL SECTORS ............................................................................................... 143
CONSUMER AND PUBLIC AFFAIRS ......................................................................................................................... 147
LEGAL............................................................................................................................................................................. 160
INTERNAL AUDIT ........................................................................................................................................................ 161
ADMINISTRATION/ HUMAN RESOURCE MANAGEMENT ................................................................................... 163
INFORMATION TECHNOLOGY .................................................................................................................................. 169
FINANCE ........................................................................................................................................................................ 175
SECRETARY TO THE OFFICE (STTO) ....................................................................................................................... 179
QUALITY MANAGEMENT SYSTEM .......................................................................................................................... 182
INDEPENDENT ADVISORY COUNCIL ON FINANCE AND ADMINISTRATION (IACFA) ................................ 186
5. BUDGET - FISCAL YEARS 2016/2017 ...................................................................................................................... 187
Overview .......................................................................................................................................................................... 187
Budget Items .................................................................................................................................................................... 187
6. CONCLUSION .............................................................................................................................................................. 200
7. Appendices ...................................................................................................................................................................... 202
Appendix I: OUR Organisation Chart 2015/2016 ........................................................................................................... 203
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EXECUTIVE SUMMARY
This Business Plan has been prepared in accordance with the National Strategic Goals for each sector and
Cabinet Approved Management Commitments. The objectives of this Plan are to:
• enable the Director-General to effectively manage the OUR in both the short and long term;
• provide the basis for the establishment of a contract for the performance and the agreed deliverables;
• define what the Office needs from its stakeholders in terms of mandate, capital investment and new authorisations;
• communicate the results of the Office’s planning process and to provide a reference point for the Director General and the Management Team; and
• Indicate to stakeholders the programme of work to which the Office is committed and the implications thereof for their own time and resources.
The Business Plan provides the Prime Minister (who has administrative responsibility for the OUR), the
Ministers with responsibility for the various regulated sectors, the utilities, other stakeholders and members
of the public with assurances that the OUR:
• has a clear direction;
• is dealing efficiently with all of the regulatory and administrative issues in the best interest of the public; and
• is managing its affairs and resources so as to minimize the risk of not meeting agreed performance levels and timeframes.
It also provides both the internal and external stakeholders with an outline of the programme of work and a
measure by which the OUR can be held accountable for the work it pursues over the Business Plan period.
The Business Plan provides:
• the Office’s operating vision outlining the focus and the timetable to deliver on its work programme for the
four (4) year period 2016/17 to 2019/20;
• a review of the work of the OUR in the current fiscal year (2015/16); and
• the strategies for delivering on the agreed plan, and how it will measure progress.
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The OUR has now received its recommendation for ISO 9001:2008 certification which demonstrates its
commitment to quality.
Major elements of this Business Plan are (i) the identification of a number of indicators that the OUR will track
and report on in Subsequent plans and (ii) the explicit alignment of the OUR’s Corporate and Sector Goals with
the Government’s “Vision 2030 Jamaica, National Development Plan” (Vision 2030).
The Business Plan prescribes a set of activities designed to fulfil the OUR’s mandate under statute consistent
with the Vision 2030. The objectives of OUR’s Policies and Programmes are to:
• ensure availability, security, reliability, quality and affordability of prescribed utility services;
• establish and maintain transparent, consistent and objective rules and standards to regulate service
providers while fully protecting the public interest;
• encourage efficient utility operations and provide an enabling environment conducive to promoting
private sector investments and sustainable economic and social development;
• develop and maintain a comprehensive information database to facilitate research and analytic capacities;
• ensure high quality policy options, programme design and advice to the policy makers; and
• align regulations, directives, and processes with legislation and policy mandates.
In its own internal operations, corporate structures and management, the OUR is committed to:
• ensuring accountabilities for results are clearly assigned and consistent with resources, and delegations are appropriate to capabilities;
• the departmental control regime is integrated and effective, and it’s underlying principles are clear to all staff;
• services are citizen-centred and policies are developed from the ‘outside-in’ and partnerships are encouraged and effectively managed;
• the executive team clearly defines the corporate context and practices for managing organizational and strategic risks, quality, finances, legal matters and business continuity proactively
• the people, the work environment and focus are on building capacity and leadership to assure the OUR’s success and a confident future
• ensuring the environment supports the company’s strategic goals, allows employees to perform their work efficiently and productively, is safe and secure and is environmentally healthy
The Business Plan is structured as follows:
• Chapter 1 sets out the OUR’s Mandate; Legislation; Mission Statement; Vision; Sector S.U.C.C.E.S.S.
indicators; Strategy Map; Sector Goals and Corporate Goals.
• Chapter 2 outlines the organization’s framework for the fiscal years 2016/17 – 2019/20.
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• Chapter 3 provides a review of the work done to date during the current fiscal year 2015/2016,
highlighting the outputs, status and any other comments regarding work done.
• Chapter 4 sets out the OUR’s work-plan and deliverables for the four - year period 2016/17 – 2019/20.
• Chapter 5 provides commentary and explanations for the budget for 2016/17.
• Chapter 6 contains the summary and conclusions.
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1. THE OUR STRATEGY
The Legislation
1.1. The Office of Utilities Regulation Act (the OUR Act) is the umbrella legislation which establishes the
organization and sets out its functions and responsibilities in respect of the sectors it regulates. Section
4 (1) of the OUR Act sets out that the functions of the Office shall be to:
a) “regulate the provision of prescribed utility services by licensees or specified organizations;
b) receive and process applications for a licence to provide a prescribed utility service and make such
recommendations to the Minister in relation to the application as the Office considers necessary or
desirable;
c) conduct such research as it thinks necessary or desirable for the purposes of the performance of its
functions under this Act;
d) advise the responsible Minister on such matters relating to the prescribed utility service as it thinks
fit or as may be requested by that Minister; and
e) subject to section 8A, carry out, on its own initiative or at the request of any person, such
investigations in relation to the provision of prescribed utility services as will enable it to determine
whether the interests of consumers are adequately protected”.
1.2. Section 4 (3) of the OUR Act, provides for the Office, in the performance of its functions under the OUR
Act, to undertake such measures as it considers necessary or desirable to:
a) “encourage competition in the provision of prescribed utility services;
b) protect the interests of consumers in relation to the supply of a prescribed utility service;
c) encourage the development and use of indigenous resources; and
d) promote and encourage the development of modern and efficient utility services;
e) enquire into the nature and extent of the prescribed utility services provided by a licensee or
specified organization”.
1.3. Schedule 1 of the OUR Act as amended by the Office of Utilities Regulation (Amendment of the First
Schedule to the Act) Order, 2014 defines prescribed utility services (the services over which the OUR
exercises regulatory responsibility) as:
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i. “The provision of telecommunication services.
ii. The provision of sewerage services. iii. The generation,
transmission, distribution and supply of electricity. iv. The supply or
distribution of water.”
1.4. In addition to the provisions of the OUR Act there are sector specific legislation and instruments such
as the Telecommunications Act and licences such as the Amended and Restated All-Island Electric
Licence, 2011 granted to the Jamaica Public Service Company Limited (JPS), which contain specific
provisions, consistent with the principles elaborated in the OUR Act, as to the Office’s functions in the
particular sector and/or its relationship to the service provider.
1.5. In delivering on its mandate, OUR operates at all times in a manner which is characterized by fairness,
timeliness, efficiency, transparency, attention to detail and independence. It adopts regulatory
interventions that are the least intrusive but designed to ensure a balance in the relationships between
all stakeholders. As part of its modus operandi, it consults widely and assesses the impact of its
proposed action on all stakeholders before issuing regulatory determinations.
1.6. All of this is underpinned by a philosophy that the regulator has a duty to operate in the public interest.
1.7. The OUR, in discharging its statutory functions is required to pay due regard to Government policy. The
Government has set out its development policy objectives and directions in the Vision 2030. The
following objectives are particularly relevant to the OUR’s remit:
• to have an enabling business environment;
• strong economic infrastructure;
• expansion of broadband networks island-wide to all including those with disabilities;
• ensuring adequate and safe water supply and sanitation services;
• diversification of the energy supply mix;
• promotion of energy efficiency, efficient energy supply systems and conservation; and
OUR’s proposed work programme is designed to achieve the above objectives.
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Mission Statement
1.8. OUR contributes to national development by enabling consumer access to reliable, affordable and
quality utility services while ensuring that service providers have the opportunity to make a
reasonable return on their investment.
Vision
1.9. Our Vision statement aligned to the National Vision 2030 is:
In 2020 OUR, a visionary, purpose-driven and customer-focused employer of choice; has enabled
Jamaica to rank as the # 1 country in the LAC Region in utility consumer protection and satisfaction
as well as the coverage, affordability and provider performance of all regulated utilities.
Quality Policy Statement:
1.10. The management and staff of the OUR are committed to Regulating Utility services in accordance
with our Legislative powers and to the Enhancement of customer Satisfaction through continual
improvement of our quality management system.
Quality Management System (QMS) Objectives for the Period 2015/16 – 2017/18:
1.11. The Quality Objectives are as follows:
• To improve our customer satisfaction index by 5% every two years starting in 2014.
• To achieve ISO 9001:2008 certification by December 2015 and maintain certification through
successful surveillance audits.
• To establish a baseline for our employee satisfaction index in 2015 and increase same by 5% every
two years.
• To improve performance of our core processes by 5% above 2014 performance.
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Corporate Plan Theme 1.12. The Corporate Plan has been developed under the theme “Regulating with FAITH to ensure
SUCCESS for everyone”,
Core Values – F.A.I.T.H.
1.13. FAITH represents the Core Values of:
• Fairness,
• Accountability,
• Integrity,
• Transparency
• Healthy Respect
Corporate Commitments
1.14. The following Commitments are driven by the Internal Support departments and speak to the
extent of achievement of OUR’s services and internal processes.
Accountability - Accountabilities for results are clearly assigned and consistent with resources,
and delegations are appropriate to capabilities.
Stewardship - The departmental control regime (assets, money, people, services, etc.) is
integrated and effective, and its underlying principles are clear to all staff.
Citizen-focused programmes - Services are citizen-centred, policies and programmes are
developed from the "outside in” and partnerships are encouraged and effectively managed.
Management - The executive team clearly defines the corporate context and practices for
managing organizational and strategic risks, quality, finances, legal matters and business
continuity proactively;
People - The people, work environment and focus are on building capacity and leadership to
assure the OUR’s success and a confident future
Environment - The Environment supports company’s strategic goals, allows employees to
perform their work efficiently and productively, is safe and secure, and is environmentally
healthy.
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S.U.C.C.E.S.S. Criteria, Indicators, Targets and Gaps
1.15. These are the OUR’s major, purpose-driven performance indicators which have been derived from
the OUR Mission (Purpose) and Vision.
1.16. The S.U.C.C.E.S.S. indicators and targets are in line with the Quality Objective improve our
customer satisfaction index by 5% every two years starting in 2014
1.17. S.U.C.C.E.S.S. is broken down for each of the four sectors as follows:
• Service – this refers to the quality of the utility being provided as well as customer and service
provider perception
• Uptime – this refers to the continuity of the utility delivery service
• Coverage – this refers to how accessible the utility is to the general public
• Compliance – this speaks to the Service provider’s compliance with established standards e.g.
regulatory, statutory, environmental, reporting etc.
• Efficiency – this speaks to the measures that the Service providers take to be as efficient as
possible so they are able to pass down savings to the consumers in the form of affordable rates
• Safety/Security – this speaks to the Service Providers compliance to safety and security standards
• Sustainability – this speaks to the ability of the Service Providers to make a fair return on
investment as well as the continuity of the sector
How S.U.C.C.E.S.S. relates to the QMS Objectives
1.18. S.U.C.C.E.S.S. represents consumer and service provider ‘satisfaction’ and takes into consideration
the perception of both customer groups as well as the performance of the various sectors.
1.19. An amalgamation of the S.U.C.C.E.S.S. of each will give us the consumer satisfaction and service
provider satisfaction index. In calculating this index each S.U.C.C.E.S.S. criteria will be weighted
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evenly to arrive at the index for a specific sector. Following that each sector is weighted evenly to
arrive at the consumer and service provider indices.
1.20. The Strategic Planning process this year is focused on identifying purpose-driven indicators that
define S.U.C.C.E.S.S. for each Sector. S.U.C.C.E.S.S. is broken out for each sector as seen below.
Data and Information to Determine Success
1.21. The required metrics and indices to measure monitor and report on the achievements of success
are set out in Table 1.1 – 1.6 below. Some of the necessary data is not now completely captured in
the information being supplied to the OUR by the various stakeholders. This mean that in many
instances it is not yet possible to determine base line data and what are realistic periodic targets.
The OUR is of the view, however, that the data in question either in total or in large part, represent
information that we would expect the operators to be gathering and analysing for their own
purposes. It is not, therefore, expected that these requirements will impose require any significant
increase in effort, albeit, the standardised format will require some changes. The OUR therefore
invites stakeholders to:
a. Comment on the appropriateness of the metrics set out in the tables in question;
b. Indicate the extent to which such information is already being captured in the required format
and can therefore be supplied;
c. Provide the OUR where available with the metrics in question for their specific organisation;
consequently the templates are being supplied to stakeholders by way of separate
correspondence to supply this.
1.22. In any event, the provision of these template in this corporate provides stakeholders with further
confirmation of the OUR’s clear commitment to data driven accountability and also of the
information that they will be required to provide at the end of 2015/16 and to inform the corporate
planning process for the next period.
Sector Descriptions
1.23. The Sectors being regulated by the OUR are as follows:
TELECOM(V) – Telecommunication Sector (Voice)
TELECOM(D) – Telecommunication Sector (DATA/INTERNET)
ELE – Electricity
WATER – Water (Potable)
SEWERAGE – Sewerage
IRRIGATE – Irrigation
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Sector Performance Metrics (S.U.C.C.E.S.S.)
Table 1-1. Telecommunications (Voice) Sector S.U.C.C.E.S.S. Indicators
TELECOMMUNICATIONS (VOICE) SECTOR S.U.C.C.E.S.S.
MAJOR INDICATORS TARGETS
2014/15 Base
2015/16 Actual
% Gap 2016/17 Target
Service
% Adherence to Quality standards N/A N/A N/A 75%
Service Provider Perception survey score N/A TBD TBD TBD
Customer Perception survey score N/A TBD TBD TBD
Uptime # of breaches of dropped calls standard N/A N/A N/A %
Mobile network availability N/A N/A N/A %
Coverage
Mobile Penetration rate 110%* (2014)
TBD TBD 112%
Fixed Penetration rate 9.31% TBD TBD 10%
Geographical coverage (fixed) N/A TBD TBD TBD
Geographical coverage (mobile) N/A TBD TBD TBD
Compliance
% adherence to information requested for general monitoring in standard time
N/A TBD TBD TBD
% adherence to information requested regarding customer appeals in standard time
N/A TBD TBD TBD
% adherence to OUR determinations N/A TBD TBD 100%
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TELECOMMUNICATIONS (VOICE) SECTOR S.U.C.C.E.S.S.
MAJOR INDICATORS TARGETS
2014/15 Base
2015/16 Actual
% Gap 2016/17 Target
% adherence to OUR directives N/A TBD TBD 100%
# of breaches of environmental standards (NEPA)* N/A TBD TBD TBD
% adherence to spectrum management on radiation levels* N/A TBD TBD TBD
Efficiency
Market competition index (HHI) (fixed) 8,326 TBD TBD 9900
Market competition index (HHI) (mobile) 6,053 TBD TBD 5800
% of disputes resolved in specified timeframe N/A TBD TBD TBD
Rates/disposable income (Consumer Conditions Survey) N/A TBD TBD TBD
Safety &
Security
Man hours lost due to accidents N/A TBD TBD TBD
% adherence to Ministry of Labour Safety standards N/A TBD TBD TBD
# of public incidents due to service providers infrastructure N/A TBD TBD TBD
# of Service Providers who have completed a Security audit (infrastructure and facilities)
N/A TBD TBD 2
% adherence to recommendations as per security audit N/A NA NA NA
# of cyber security breaches N/A TBD TBD TBD
Sustainability Average Debt/EBITDA N/A TBD TBD TBD
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TELECOMMUNICATIONS (VOICE) SECTOR S.U.C.C.E.S.S.
MAJOR INDICATORS TARGETS
2014/15 Base
2015/16 Actual
% Gap 2016/17 Target
% of service providers have Risk Management established plan N/A TBD TBD 2
% adherence to Risk Management Plan N/A TBD TBD TBD
% of service providers have Business Continuity established plan N/A TBD TBD TBD
% adherence to Business Continuity Plan N/A TBD TBD TBD
Average Capital Investment increase in the sector over 5 year periods
2010-2015
TBD TBD 10%
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Table 1-2. Telecommunications (Internet/Data) Sector S.U.C.C.E.S.S. Indicators
TELECOMMUNICATIONS (INTERNET/DATA) SECTOR S.U.C.C.E.S.S.
MAJOR INDICATORS
TARGETS
2014/15 Base
2015/16 Actual
% Gap 2016/17 Target
Service
# of breaches of Quality standards N/A TBD TBD TBD
Service Provider Perception survey score N/A TBD TBD TBD
Customer Perception survey score N/A TBD TBD TBD
Uptime # Outages/Faults N/A TBD TBD TBD
Broadband Availability N/A TBD TBD TBD
Coverage
Mobile Internet Penetration rate 40% TBD TBD 60%
Fixed Internet Penetration rate 6%
(2014) TBD TBD 12%
Fixed Internet penetration rate over 10MB/s N/A TBD TBD TBD
Fixed Internet penetration rate over 15MB/s N/A TBD TBD TBD
Fixed Internet penetration rate over 20MB/s N/A TBD TBD TBD
Compliance
% adherence to information requested for general monitoring in standard time
N/A TBD TBD TBD
% adherence to information requested regarding customer appeals in standard time
N/A TBD TBD TBD
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TELECOMMUNICATIONS (INTERNET/DATA) SECTOR S.U.C.C.E.S.S.
MAJOR INDICATORS
TARGETS
2014/15 Base
2015/16 Actual
% Gap 2016/17 Target
# of breaches of environmental standards (NEPA) N/A TBD TBD TBD
% adherence to spectrum management on radiation levels N/A TBD TBD TBD
Efficiency
Market competition index (fixed) 5,000 TBD TBD 9900
Market competition index (mobile) 9,529 TBD TBD 9000
Rates/disposable of income N/A TBD TBD TBD
Safety/
Security
Man hours lost due to accidents N/A TBD TBD TBD
% adherence to Ministry of Labour Safety standards N/A TBD TBD TBD
# of public incidents due to service providers infrastructure N/A TBD TBD TBD
% of Service Providers who have completed a Security audit (infrastructure and facilities)
N/A TBD TBD TBD
% adherence to recommendations as per security audit N/A TBD TBD TBD
# of cyber security breaches N/A TBD TBD TBD
Sustainability
Average Debt/EBITDA N/A TBD TBD TBD
% of service providers have Risk Management established plan N/A TBD TBD TBD
% adherence to Risk Management Plan N/A TBD TBD TBD
% of service providers have Business Continuity established plan N/A TBD TBD TBD
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TELECOMMUNICATIONS (INTERNET/DATA) SECTOR S.U.C.C.E.S.S.
MAJOR INDICATORS
TARGETS
2014/15 Base
2015/16 Actual
% Gap 2016/17 Target
% adherence to Business Continuity Plan N/A TBD TBD TBD
Average Capital Investment in the sector over 5 years N/A TBD TBD TBD
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Table 1-3. Electricity Sector S.U.C.C.E.S.S. Indicators
ELECTRICITY SECTOR S.U.C.C.E.S.S.
MAJOR INDICATORS
TARGETS
2014/15 Base
2015/16 Actual
% Gap 2016/17 Target
Service
# of breaches of Quality of Service Standards TBD TBD TBD TBD
Service Provider Perception survey score TBD TBD TBD TBD
Customer Perception survey score TBD TBD TBD TBD
Uptime
SAIDI (System Average Interruption Duration Index) 2404.41
mins/customer
TBD TBD TBD
CAIDI (Customer Average Interruption Duration Index) 110.43
mins/customer
TBD TBD TBD
MAIFI (Momentary Average Interruption Frequency Index) 34.04
interruptions/customer
TBD TBD TBD
SAIFI (System Average Interruption Frequency Index) 21.77
interruptions/customer
TBD TBD TBD
% of customers affected by outages over 2 days in emergency situations
TBD TBD TBD TBD
Coverage
# Residential customers/total # households (JPS/STATIN) TBD TBD TBD TBD
% Geographical coverage TBD TBD TBD TBD
% households with access to Electricity (STATIN) TBD TBD TBD TBD
Compliance % adherence to information requested for general monitoring in TBD TBD TBD TBD
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ELECTRICITY SECTOR S.U.C.C.E.S.S.
MAJOR INDICATORS
TARGETS
2014/15 Base
2015/16 Actual
% Gap 2016/17 Target
standard time
% adherence to information requested regarding customer appeals in standard time
TBD TBD TBD TBD
% adherence to OUR determinations TBD TBD TBD TBD
% adherence to OUR directives TBD TBD TBD TBD
# of breaches of environmental standards (NEPA) TBD TBD TBD TBD
Efficiency
System losses/Net Generation 26.74% TBD TBD TBD
Average System Heat Rate (JPS) kJ/kWh 11,468 TBD TBD TBD
Average System Heat Rate (Sector) kJ/kWh 9,668 TBD TBD TBD
Real non-fuel price TBD TBD TBD TBD
Total Factor Productivity TBD TBD TBD TBD
# of employees per thousand customer 1.78 TBD TBD TBD
Safety/
Security
Man hours lost due to accidents TBD TBD TBD TBD
# of public incidents due to service provider infrastructure TBD TBD TBD TBD
# of security breaches (cyber and system) TBD TBD TBD TBD
% of Service Providers who have completed a Security audit (infrastructure and facilities)
TBD TBD TBD TBD
% adherence to implementation of recommendations as per security vulnerability audit
TBD TBD TBD TBD
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ELECTRICITY SECTOR S.U.C.C.E.S.S.
MAJOR INDICATORS
TARGETS
2014/15 Base
2015/16 Actual
% Gap 2016/17 Target
Sustainability
Average Debt/EBITDA TBD TBD TBD TBD
% of service providers have Risk Management established plan TBD TBD TBD TBD
% adherence to Risk Management Plan TBD TBD TBD TBD
% of service providers have Business Continuity established plan TBD TBD TBD TBD
% adherence to Business Continuity Plan TBD TBD TBD TBD
Average Capital Investment in the sector over 5 years TBD TBD TBD TBD
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Table 1-4. Water (Potable) Sector S.U.C.C.E.S.S. Indicators
WATER (POTABLE) SECTOR S.U.C.C.E.S.S.
MAJOR INDICATORS
TARGETS
2014/15 Base
2015/16 Actual
% Gap 2016/17 Target
Service
# of breaches of Quality of Service Standards TBD TBD TBD TBD
Service Provider Perception survey score TBD TBD TBD TBD
Customer Perception survey score TBD TBD TBD TBD
Uptime
SAIDI (System Average Interruption Duration Index) TBD TBD TBD TBD
CAIDI (Customer Average Interruption Duration Index) TBD TBD TBD TBD
SAIFI (System Average Interruption Frequency Index) TBD TBD TBD TBD
# of customers affected by unplanned outages lasting over 3 hours TBD TBD TBD TBD
% of customers affected by outages over 2 days in emergency situations
TBD TBD TBD TBD
Coverage
# of residential customers/total # households (NWC/STATIN) TBD TBD TBD TBD
% Geographical coverage 90% TBD TBD TBD
% population with access to potable Water* (STATIN) 70%% TBD TBD TBD
Compliance
% adherence to information requested for general monitoring in standard time
TBD TBD TBD 100%
% adherence to information requested regarding customer appeals TBD TBD TBD TBD
% adherence to OUR directives TBD TBD TBD 100%
% adherence to OUR determinations TBD TBD TBD 100%
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WATER (POTABLE) SECTOR S.U.C.C.E.S.S.
MAJOR INDICATORS
TARGETS
2014/15 Base
2015/16 Actual
% Gap 2016/17 Target
# of breaches of environmental standards (NEPA) TBD TBD TBD TBD
% adherence to MOH standards TBD TBD TBD TBD
Efficiency
% Non-revenue water 71.30% 67.5% TBD 50%
Energy consumption/volume of water sold TBD TBD TBD TBD
Real non-electricity price TBD TBD TBD TBD
Total Factor Productivity TBD TBD TBD TBD
# of employees per thousand customer 4 TBD TBD TBD
Safety/
Security
Man hours lost due to accidents TBD TBD TBD TBD
# of public incidents due to service provider infrastructure TBD TBD TBD TBD
% of Service Providers who have completed a Security audit (infrastructure and facilities)
TBD TBD TBD TBD
% adherence to recommendations as per security audit TBD TBD TBD TBD
# security breaches (cyber and system) TBD TBD TBD TBD
Sustainability
Average Debt/EBITDA TBD TBD TBD TBD
Average Capital Investment in the sector over 5 years TBD TBD TBD TBD
% of service providers have Risk Management established plan TBD TBD TBD TBD
% adherence to Risk Management Plan TBD TBD TBD TBD
% of service providers have Business Continuity established plan TBD TBD TBD TBD
% adherence to Business Continuity Plan TBD TBD TBD TBD
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Table 1-5. Sewerage Sector S.U.C.C.E.S.S. Indicators
SEWERAGE SECTOR S.U.C.C.E.S.S.
MAJOR INDICATORS
TARGETS
2014/15 Base
2015/16 Actual
% Gap 2016/17 Target
Service
# of breaches of Quality of Service Standards TBD TBD TBD TBD
Service Provider Perception survey score TBD TBD TBD TBD
Customer Perception survey score TBD TBD TBD TBD
Uptime
SAIDI (System Average Interruption Duration Index) TBD TBD TBD TBD
SAIFI (System Average Interruption Frequency Index) TBD TBD TBD TBD
# of incidents of system breakdown (overflows, blockages) TBD TBD TBD TBD
% uptime of treatment plants TBD TBD TBD TBD
% uptime of sewerage system TBD TBD TBD TBD
Coverage
# of residential customers/total # of households TBD TBD TBD TBD
% of urban centres with sewerage system TBD TBD TBD TBD
% of households in urban centres connected to sewerage services TBD TBD TBD TBD
% of households in urban centres with access to sewerage services TBD TBD TBD TBD
Compliance
% adherence to information requested for general monitoring in standard time
TBD TBD TBD 100%
% adherence to information requested regarding customer appeals
TBD TBD TBD TBD
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SEWERAGE SECTOR S.U.C.C.E.S.S.
MAJOR INDICATORS
TARGETS
2014/15 Base
2015/16 Actual
% Gap 2016/17 Target
% adherence to OUR directives TBD TBD TBD 100%
% adherence to OUR determinations TBD TBD TBD 100%
# of breaches of environmental standards (NEPA) TBD TBD TBD TBD
% adherence to MOH standards TBD TBD TBD TBD
Efficiency
Real non-electricity price TBD TBD TBD TBD
Total Factor Productivity TBD TBD TBD TBD
# of employees per thousand connections 4 TBD TBD TBD
Energy consumption/volume of sewage treated TBD TBD TBD TBD
Safety/
Security
Man hours lost due to accidents TBD TBD TBD TBD
# of public incidents due to service providers infrastructure TBD TBD TBD TBD
% of Service Providers who have completed a Security audit (infrastructure and facilities)
TBD TBD TBD TBD
% adherence to recommendations as per security audit TBD TBD TBD TBD
# security breaches (cyber and system) TBD TBD TBD TBD
Sustainability
Average Debt/EBITDA TBD TBD TBD TBD
Average Capital Investment in the sector over 5 years TBD TBD TBD TBD
% of service providers have Risk Management established plan TBD TBD TBD TBD
% adherence to Risk Management Plan TBD TBD TBD TBD
% of service providers have Business Continuity established plan TBD TBD TBD TBD
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SEWERAGE SECTOR S.U.C.C.E.S.S.
MAJOR INDICATORS
TARGETS
2014/15 Base
2015/16 Actual
% Gap 2016/17 Target
% adherence to Business Continuity Plan TBD TBD TBD TBD
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Table 1-6. Water (Irrigation) Sector S.U.C.C.E.S.S. Indicators
WATER (IRRIGATION) SECTOR S.U.C.C.E.S.S.
MAJOR INDICATORS
TARGETS
2014/15 Base
2015/16 Actual
% Gap 2016/17 Target
Service
# of breaches of Quality of Service Standards TBD TBD TBD TBD
Service Provider Perception survey score TBD TBD TBD TBD
Customer Perception survey score TBD TBD TBD TBD
Uptime SAIDI (System Average Interruption Duration Index) TBD TBD TBD TBD
SAIFI (System Average Interruption Frequency Index) TBD TBD TBD TBD
Coverage # of customers/total # farmers TBD TBD TBD TBD
% population with access to irrigation services TBD TBD TBD TBD
Compliance
% adherence to information requested for general monitoring in standard time
TBD TBD TBD 100%
% adherence to information requested regarding customer appeals
TBD TBD TBD TBD
% adherence to OUR directives TBD TBD TBD T100%
% adherence to OUR determinations TBD TBD TBD 100%
# of breaches of environmental standards (NEPA) TBD TBD TBD TBD
% adherence to MOH standards TBD TBD TBD TBD
Efficiency
Non-revenue water* TBD TBD TBD TBD
Real non-electricity price TBD TBD TBD TBD
Total Factor Productivity TBD TBD TBD TBD
# of employees per thousand customer TBD TBD TBD TBD
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Safety/ Security
Man hours lost due to accidents TBD TBD TBD TBD
# of public incidents due to service providers infrastructure TBD TBD TBD TBD
% of Service Providers who have completed a Security audit (infrastructure and facilities)
TBD TBD TBD TBD
% adherence to recommendations as per security audit TBD TBD TBD TBD
# security breaches (cyber and system) TBD TBD TBD TBD
Sustainability
Average Debt/EBITDA TBD TBD TBD TBD
Average Capital Investment in the sector over 5 years TBD TBD TBD TBD
% of service providers have Risk Management established plan TBD TBD TBD TBD
% adherence to Risk Management Plan TBD TBD TBD TBD
% of service providers have Business Continuity established plan TBD TBD TBD TBD
% adherence to Business Continuity Plan TBD TBD TBD TBD
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Customer Value Propositions 1.24. Consumer: The OUR commits to protecting the interest of consumers of utility services, while
understanding and being responsive to their needs and keeping them well informed.
1.25. Service Providers: The OUR commits to being objective, transparent and responsive to utility
service providers while allowing them the opportunity to earn a reasonable return on equity.
Strategy Statement 1.26. The OUR will increase accessibility, reliability, affordability and quality of utility service delivery as
well as the performance of the service providers by:
Engaging strategic partners to create the environment for greater levels of investment in the
provision of utility services while encouraging the use of indigenous resources
Strengthening enforcement-based compliance regulation with wider ability to levy fines while
balancing with engagement-driven commitment to influence service provider behaviour
Strengthening public education, communication and provision of market information to influence
consumer behaviour resulting in higher levels of consumer awareness and compliance
Enhancing strategy articulation and execution capability by strengthening governance, leadership,
management and accountability in accordance with the OUR’s Quality Management System
(QMS).
Strategy Map
1.27. The OUR has sought to communicate its key inputs, that is, Internal Capability and Processes, and
the key outcomes, that is Sector Impact and National impact, in a strategy map (see below). The
map is a key component of the Balanced Scorecard Strategy Management System which the OUR
employs.
1.28. The map gives a balanced look at the organisation by showing the linkages between the
organization’s Internal Capability and Processes, and the desired Stakeholder Perception and
National Impact.
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1.29. The perspectives of the map are as follows:
• National Impact – The overall impact of the OUR
• Sector Impact – Sector S.U.C.C.E.S.S. objectives
• Internal Processes – The Control and Core strategic processes the OUR must execute to achieve
the desired Sector and National Impact
• Internal Capability – The OUR’s tangible and intangible assets – Talent, Technology and Culture
2016/17 - 2019/20 Sector Goals and Objectives
Telecommunication Sector Goals and Objectives
TS1. Maximize Jamaicans’ access to and the adoption of affordable fixed and mobile broadband where they live,
work, and travel.
a. Increase penetration rate by 5% (coverage and take up) b. Increase access by 5% over the next two years for users using over 1MB c. Increase accessibility of ICT services to persons with disabilities
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TS2. Enhance the competitive market for telecommunications services which will ensure that consumers have a
choice in affordable telecommunications services.
a. Ensure that cost of service as a % of disposable income is in the top 50 when benchmarked globally
b. Increase Competition index
TS3. Ensure the continued protection of consumers through empowerment and knowledge of their rights
pertaining to ICT services.
a. Increase customer perception score by 5% re: their rights and responsibilities pertaining to ICT services.
b. Monitor and report on the performance of service providers with quality of service standards and guidelines.
c. Develop and implement communication and public education initiatives. d. Ensure that service providers have suitable complaints handling framework. e. Review conditions of service agreements between service providers and customers.
TS4. Facilitate the availability of effective emergency access services.
a. Facilitate the establishment of an effective emergency service that all persons in Jamaica can access from any fixed or mobile instrument
TS5. Facilitate the availability of reliable, redundant, rapidly restorable, secure critical telecommunications
infrastructure that are supportive of all required services
a. Increase uptime b. Increase service providers capability to mitigate against cyber attacks c. Mandate annual security and vulnerability audits d. Develop Risk Management framework for the sector
TS6. Ensure the efficient management of scarce resources
a. Ensure that service providers always have the required numbering resources to provide telecommunications service to the public
TS7. Facilitate Interoperability across networks
a. Ensure 100% connectivity and interoperability between all networks TS8. Promote Sector sustainability
a. Encourage increased integration of plans and projects with national development plans and programs.
b. Encourage the Improvement in the overall efficiency and effectiveness in the use of resources. c. Encourage the alignment of key core processes to international best practices.
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TS9. Improve the Regulatory Environment
a. Improve service provider perception of OUR’s regulatory services by 5%. b. Develop general dispute resolution framework. c. Advise on developing trends in technology
Electricity Sector Goals and Objectives
ES1. Implement provisions of the new Electricity Act.
a. Complete five codes within one year of the promulgation of the Act. b. Develop the Wheeling framework and pricing mechanism c. Develop a framework and implement the monitoring of economic generation dispatch d. Establish System Benefit Fund
ES2. Pursue regulatory initiatives aimed at lowering retail rates below US twenty cents per kilowatt hour in the
long term.
a. Monitor the base load replacement project. b. Incentivize JPS to reduce system losses. c. Administer and manage the procurement of the 37MW renewable energy project.
ES3. Improve market efficiency.
a. Develop account separation framework for JPS b. Conduct sector-wide market study
ES4. Promote system stability, security and reliability.
a. Monitor compliance with codes. b. Mandate annual security and vulnerability audits. c. Mandate and monitor implementation of audit recommendations. d. Develop Risk Management framework for the sector.
ES5. Promote Sector sustainability
a. Promote the integration of plans and projects with national development. b. Promote the overall efficiency and effectiveness in the use of resources especially those
indigenous in nature. c. Monitor the development and implementation of the integrated resource plan (IRP). d. Support and monitor the diversification of the energy supply mix. e. Encourage the alignment of key core processes to international best practices.
ES6. Attain measurable improvements in the delivery of services to customers in respect of: service interruptions,
variability and consumer protection.
a. Monitor the compliance with supply code and standards.
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b. Incentivise service provider to improve quality of service. c. Monitor and enforce compliance with guaranteed and overall standards. d. Improve customer awareness and knowledge of rights and responsibilities by 5%. e. Ensure that service providers have a suitable complaints handling framework f. Review conditions of service agreements between service providers and customers.
ES7. Improve the Regulatory Environment
a. Improve service provider perception of OUR’s regulatory services by 5%. b. Develop general dispute resolution framework for service providers c. Develop and formulate policy positions based on emerging technological trends
Water (Potable) Sector Goals and Objectives
WS1. Increase access to potable water services in keeping with the policy objective on access to potable water
a. Support the development of industry specific legislation. b. Ensure that there is an adequate Development Plan for the sector. c. Facilitate implementation of projects in line with Sector Development Plan d. Encourage public private partnership in the supply of potable water.
WS2. Increase Efficiency in the sector.
a. Ensure the effective and efficient operation of K-factor programme. b. Institute measures to encourage the reduction of non-revenue water c. Develop Account separation framework d. Encourage energy efficiency in the production and delivery of potable water
WS3. Promote system stability, security and reliability.
a. Encourage modernization of the sector. b. Mandate annual security and vulnerability audits. c. Mandate and monitor implementation of audit recommendations. d. Develop Risk Management framework for the sector.
WS4. Promote Sector sustainability
a. Promote integration of plans and projects consistent with national development. b. Promote the overall efficiency and effectiveness in the use of resources especially those
indigenous in nature. c. Encourage the alignment of key core processes to international best practices. d. Review and monitor compliance with regulatory frameworks (including Ministry of Health).
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WS5. Promote improvements in the delivery of services to customers in respect of: water quality, service
interruptions, variability and consumer protection.
a. Monitor the compliance with regulatory frameworks and standards. b. Monitor and enforce compliance with guaranteed and overall standards. c. Improve customer awareness and knowledge of rights and responsibilities by 5%. d. Ensure that service providers have a suitable complaints handling framework e. Review conditions of services agreements between service providers and customers.
WS6. Improve the Regulatory Environment
a. Improve service provider perception of OUR’s regulatory services by 5%. b. Develop general dispute resolution framework for service providers c. Develop and formulate policy positions based on emerging technological trends
Water (Sewerage) Sector Goals and Objectives
SS1. Increase access to sewerage services in keeping with the national objective;
a. Support the development of industry specific legislation. b. Ensure that there is an adequate Development Plan for the sector. c. Facilitate implementation of projects in line with Sector Development Plan d. Encourage public private partnership in the development of sewerage collection and treatment
systems.
SS2. Increase Efficiency in the sector.
a. Ensure the effective and efficient operation of K-factor programme. b. Develop Account separation framework c. Encourage energy efficiency
SS3. Promote system stability, security and reliability.
a. Encourage modernization of the sector. b. Mandate annual security and vulnerability audits. c. Mandate and monitor implementation of audit recommendations. d. Develop Risk Management framework for the sector.
SS4. Promote system sustainability
a. Improve integration of plans and projects consistent with national development plan. b. Promote the overall efficiency and effectiveness in the use of resources including the reuse of
treated effluent. c. Encourage the alignment of key core processes to international best practices. d. Review and monitor compliance with regulatory frameworks (including NEPA).
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SS5. Promote improvements in the delivery of services to customers in respect of service interruptions and
consumer protection.
a. Monitor the compliance with regulatory frameworks and standards. b. Monitor and enforce compliance with guaranteed and overall standards. c. Improve customer awareness and knowledge of rights and responsibilities by 5% d. Develop and implement complaints handling framework for the service provider. e. Review conditions of service agreements between service providers and customers.
SS6. Improve the Regulatory Environment
a. Improve service provider perception of OUR’s regulatory services by 5%. b. Develop general dispute resolution framework for service providers c. Develop and formulate policy positions based on emerging technological trends
Water (Irrigation) Sector Goals and Objectives
IS1. Increase access to irrigation water services in keeping with the national objectives;
a. Support the development of industry specific legislation. b. Ensure that there is an adequate Development Plan for the sector. c. Facilitate implementation of projects in line with Sector Development Plan d. Encourage public private partnership in the development of irrigation systems
IS2. Increased Efficiency in the sector.
a. Encourage modernization of the sector. b. Develop Account separation framework c. Institute measures to encourage the reduction of non-revenue water d. Encourage energy efficiency
IS3. Promote system security.
a. Mandate annual security and vulnerability audits. b. Mandate and monitor implementation of audit recommendations. c. Develop Risk Management framework for the sector.
IS4. Promote Sector sustainability
a. Improve integration of plans and projects consistent with national development plans. b. Improve in the overall efficiency and effectiveness in the use of resources. c. Encourage the alignment of key core processes to international best practices. d. Review and monitor compliance with regulatory frameworks (including NEPA).
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IS5. Promote improvements in the delivery of services to customers in respect of: water quality, service
interruptions, variability and consumer protection.
a. Monitor the compliance with regulatory frameworks and standards set by the relevant agencies b. Monitor and enforce compliance with guaranteed and overall standards. c. Improve customer awareness and knowledge of rights and responsibilities by 5% d. Develop and implement complaints handling framework for the service provider. e. Review conditions of service agreements between service providers and customers.
IS6. Improve the Regulatory Environment
a. Improve service provider perception of OUR’s regulatory services by 5%. b. Develop general dispute resolution framework for service providers c. Develop and formulate policy positions based on emerging technological trends
2016/17 – 2019/20 Corporate Goals and Objectives CS1. Accountability: Accountabilities for results are clearly assigned and consistent with resources, and
delegations are appropriate to capabilities.
a. Introduction and use of OUR’s Governance and GoJ Accountability Framework.
b. Agreement of specific performance targets and measurements at the Individual, Department and
Organizational level in line with OUR’s Governance Framework.
c. Ensure compliance with performance targets based on relevant Legislation.
d. Conduct Regulatory Impact Assessment where necessary
e. Procurement strategy reflects the organization’s needs and is in keeping with regulatory
guidelines
CS2. Stewardship: The departmental control regime (assets, money, people, services, etc.) is integrated and
effective, and its underlying principles are clear to all staff.
a. Effective communications functions in place to ensure transparency.
b. Ensure favourable reports from applicable authorities (e.g. internal and external auditors, OCG
etc.).
c. Internal policies and procedures impose appropriate level of stewardship responsibility to staff.
d. Management systems provide relevant information and early warning on resources, results and
controls.
e. All processes and procedures are documented and current
f. IACFA fulfills its mandate.
g. Compliance with policies, regulations and legislation.
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CS3. Citizen-focused Programmes: Services are citizen-centred, policies and programmes are developed
from the "outside in” and partnerships are encouraged and effectively managed:-
a. Customer satisfaction survey results are reflected in policy recommendations and operating
changes as appropriate.
b. Standard Operating Procedures ensure delivery of high quality service
c. Establishment of Memoranda of Understanding (MoU) and/or Service Level Agreements (SLAs)
with key external stakeholders as required.
d. Citizens Charter (CC) is current.
e. Mechanisms in place to receive and assess consumer views.
f. Enhance OUR’s engagement levels with the customer.
g. Increase in the use of technology to improve delivery of service to customers.
h. Opportunities for stakeholders to provide inputs and feedback on policies and programmes.
i. Stakeholders are kept up to date on issues relating to activities in the sectors.
CS4. Management: The executive team clearly defines the corporate context and practices for managing
organizational and strategic risks, quality, finances, legal matters and business continuity proactively;-
a. OUR risk profiles are current. b. Integrated Risk Management Framework in place.
c. All processes and procedures include requisite checks and balances to manage or mitigate risk.
d. Improve core process performance by 5%
e. Measures in place to ensure Business continuity
f. Address and manage legislative changes
g. Ensure prudent financial management
CS5. People: The people, work environment and focus are on building capacity and leadership to assure the
OUR’s success and a confident future;-
a. Increase Employee Satisfaction index by 5% b. Opportunities to grow skills and competencies by training, team assignments and work rotation. c. Employee engagement in the development of training programmes. d. Training and knowledge management geared towards leadership continuum and knowledge
retention.
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e. Suitable strategy in place to ensure that the OUR recruits staff with the requisite skills and
experience. f. An objective appraisal system for staff performance that would result in recognition, rewards or
sanctions.
CS6. Environment: The Environment supports company’s strategic goals, allows employees to perform their
work efficiently and productively, is safe and secure, and is environmentally healthy.
a. Adequate Safety and Security standards are in place and adhered to
b. IT systems and equipment are up to date and support the company strategy
c. The physical environment promotes health and wellness
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2. OPERATIONAL FRAMEWORK (2016/2017– 2019/20)
2.1. The Vision 2030 sums up the overall vision for Jamaica in the following phrase:
“Jamaica, the place of choice to live, work, raise families and do business”
2.2. The OUR will continue to work, in its mandated area, towards the achievement of the goals of the
Vision 2030 by aligning private behaviour with the public interest across the various utility services it
regulates. In this regard, it will continue to monitor and regulate service providers closely to ensure
the delivery of superior quality and efficient customer service.
The Office
2.9. The statutory appointees to the Office are the Director General and Deputy Directors General. At
present, three appointees constitute the Office: Albert Gordon - Director General; Maurice Charvis
Deputy Director General; and Hopeton Heron – Deputy Director General.
Department of Secretary to the Office (STTO)
2.10. The Department of the STTO is central to the operations of the OUR, and to the achievement of
organisation’s strategic objectives to be transparent, accountable, to contribute to national
development, and to provide value for money. It is responsible for the functioning of the decision
making processes, for compliance with internal and external procedures, and for ensuring that the
organisation operates in an effective and efficient manner. It is the interface between the Office and
its internal and external stakeholders. The Secretary to the Office sets the regulatory agenda in
consultation with the Director General, and ensures that matters before the Office are dealt with
expeditiously.
2.11. The STTO assists the Office with the development and articulation of its strategies and policies, and in
the effective governance of the OUR. It co-ordinates the preparation of the Management
Accountability and Governance Framework and the Corporate Business Plan; and plays a major role
in the preparation of the Annual Report.
2.12. As part of its responsibilities in the areas of effective governance and compliance, the STTO
Department monitors the implementation of the work programmes, and the timelines, as set out in
the Corporate Plan, and also the various agreed departmental goals; and keeps the Office informed
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of the current status of these programmes and goals. It also reports on a regular basis to the
Government, through the Ministry of Finance and Planning, on the OUR’s performance in achieving
the targets established in the work programmes.
2.13. The STTO Department is responsible for the licence processing functions of the OUR, including the
coordination of the due diligence process for licence applications, the maintenance of a
comprehensive database, a current public register of applications for licences, and the status of
licences issued. The Department will also undertake some aspects of monitoring of licensees.
2.14. The STTO manages the OUR’s international relations with other regulators and institutions. The
Department also coordinates the technical and administrative inputs for the effective execution of
projects involving the OUR which are funded through grants from international funding agencies.
Objective
2.15. To ensure that the Office, in its execution of the OUR’s strategy, is guided by well-defined and clearly
articulated strategic thinking, observes due process, makes decisions in a transparent and timely
manner, follows standard procedures, maintains good relations with all stakeholders, and makes
available to the public, accurate and complete records of decisions.
General Activities
2.16. The following are the general activities of the STTO:
• maintaining the Office’s schedule;
• attending meetings of the Office, and monitoring and driving the enforcement of decisions;
• developing rules of procedure (in consultation with the General Counsel) for the conduct of the
affairs of the Office;
• drafting and issuing correspondence, position papers, presentations, etc. on behalf of the Office;
• managing the licensing process, and maintaining the licensing records and register;
• initiating enforcement actions for breaches of licences, directives, orders, etc.;
• co-ordinating the preparation and submission of quarterly and other periodic statutory reports;
• co-ordinating the development and presentation of the Management Accountability and
Governance Framework and Corporate Business Plan and Budget, and the preparation of material
for annual reports;
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• monitoring the departments’ compliance with targets set out in the Corporate Business Plan;
• maintaining correspondence with external parties and stakeholders;
• developing project applications and negotiating project terms;
• representing the OUR in various fora both locally and internationally; and
• playing its part in the implementation of a Quality Management System in the OUR, together
with ISO 9001:2008 certification.
Office of the General Counsel (Legal Department)
2.17. This Department provides legal support in the development of the regulatory framework, the
establishment of rules of procedure and the drafting of decisions issued by the OUR. It seeks to
operate in a manner which minimizes the likelihood of challenges and ensures successful judicial
review of
OUR’s decisions. The Department is required to respond to all legal challenges to the OUR’s
decisions and, where necessary, to engage and manage the services of external legal counsel.
Objective
2.18. To develop, maintain and enforce the legal framework of the OUR and to secure an enabling
environment for the efficient functioning of utilities through a framework of rules that lend
predictability to the OUR’s decisions.
General Activities
2.19. The General Counsel’s Department is engaged in the following activities:
• ensuring that the OUR observes due process and complies with all legal requirements in discharging
its functions;
• the review of consultative documents, Office determinations and other regulatory instruments and
contracts for works, goods and services;
• the conduct of investigations into allegations of breaches of the relevant legislation and/or
regulatory instruments, including preparing the Office to conduct hearings;
• the update and maintenance of the Rules of Practice and Procedure of the OUR;
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• the review and maintenance of the relevance of the Code of Ethics;
• the preparation of instructions and briefs to external counsel in connection with litigation and other
legal processes before the courts and quasi-judicial tribunals;
• the preparation and issuance of enforcement orders and referral to the courts of relevant matters;
• the preparation of matters to be heard by the appeals tribunals established under the
Telecommunications Act and various licences;
• the preparation of legal opinions and advice to internal Departments; the preparation of
correspondence of legal significance for the OUR; and
• interfacing with external stakeholders to protect the OUR’s legal position.
Regulation, Policy, Monitoring and Enforcement (RPME) Department
2.20. The RPME Department’s primary function is to advise the Office on regulatory policy, to analyse,
monitor and evaluate the economic, financial and technical performance of all regulated utilities and
sectors and to assess the extent of competition where applicable. It has responsibility to develop
tariff models, recommend tariffs and commission a range of technical functions to advise the Office. It
also has responsibility to monitor the performance of utilities against agreed benchmarks and enforce
compliance.
Objective
2.21. To provide the Office with such economic and technical advice as to ensure that consumers of utility
services enjoy acceptable quality of service at least economic cost, and to ensure security of timely
service for the future.
Strategy
2.22. The RPME Department discharges its functions through a combination of financial, economic and
technical analyses of the regulated entities, benchmarking of the service providers against
comparable organisations internationally. It also commissions as needed, regular surveys of the state
of competition in the various sectors. The Utility Monitoring Unit has primary responsibility for
ensuring regulated entities are compliant with Office Directives, relevant legislation, licence
conditions and tariff requirements as well as KPIs. Its activities provide the Office with on-going
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assessments of its regulatory effectiveness. The RPME Department also has responsibility for ensuring
the incorporation of Regulatory Impact Assessments (RIAs) into regulatory decisions.
2.23. The programmes listed in the work plan will either be continued from the previous fiscal year or are
to be launched in the 2015/16 fiscal year.
General Activities
2.24. The RPME Department, among other things:
• commissions analyses of rate applications and makes recommendations to the Office;
• provides policy advice to the Office and, through the Office, to the Government when so required;
• provides the Office with technical and economic advice on matters of dispute between competing
utilities;
• commissions research on all aspects of utilities regulation;
• commissions market and competition analyses;
• produces and publishes various documents (consultative documents, notice of proposed rulemaking,
position papers, working papers, policy advisories, determination notices, etc.) critical to the
regulatory process;
• engages with overseas counterparts for purposes of information exchange, provides assistance and
collaboration on regulatory matters;
• represents the Office at various international fora;
• monitors utility projects through progress reports etc.;
• monitors service standards through reporting and customer feedback, surveys, etc.;
• produces regular Regulatory Impact Assessments;
• commissions periodic audits of specific functions of the utilities;
• prepares policy papers and recommendations to the Office; and
• maintains communication with service providers on actions/strategies with respect to projects and
other regulatory undertakings.
Consumer and Public Affairs (CPA) Department
2.25. This Department incorporates consumer affairs, communication services and the Information Centre. It
also liaises with, and provides technical support to the work of the Consumer Advisory Committee on
Utilities (CACU), an independent advocacy group whose operations are facilitated by the OUR.
47
2.26. CPA administers the consumer affairs regulatory function of the OUR. It educates consumers on their
rights, and investigates decisions made by the utility companies on consumer complaints with which the
consumers remain dissatisfied. The Department is responsible for developing quality of service and
customer service standards. CPA is responsible for the OUR’s records and documents management
system.
The OUR’s Information Centre (OURIC) is managed by the CPA. Apart from providing vital resources for
the staff, the OURIC is also open to the public, and it is through this medium that the Office’s obligations
under the Access to Information Act are discharged. The CPA also has the critical function of managing
the content of the Office’s website.
Objectives
2.27. CPA is guided by the following objectives to:
• ensure that the perspective of consumers and public interest are considered in all regulatory decisions
and determinations;
• ensure that customers of the utility companies enjoy acceptable quality of service at economic cost,
and are assured of secure and timely supplies;
• provide an avenue of appeal for consumers in their relationship with the utility service providers;
• inform and educate consumers and the general public; and
• highlight the work of the OUR and to maintain a positive public image.
Strategies
• Monitoring and survey of consumers to detect concerns and emerging problems; Institution of
mechanisms for feedback;
• Monitor the performance of the service providers against the established service level
agreements; Managing media relations; and
• Public education and stakeholder engagement.
General Activities
2.28. The CPA Department uses as a primary input to its policy development and advice to the OUR, the
results of analyses of appeals received from customers in regard to the services provided by the
companies. Feedback from consumers who attend consultations and other events is also utilised in the
development of policies. The CPA Department commissions a consumer survey every two years which
seeks consumers’ feedback on a range of consumer issues and measures utilities’ consumer
satisfaction. It pursues a programme of public education and consultation via diverse media.
48
Human Resources Development/Administration Department
2.29. This Department provides administrative and human resources support to the OUR and is also
responsible for training and procurement. The Departments plays a key role in driving the QMS
Objective of improving employee satisfaction by 5% year over year for the next three years.
2.30. A multi-sector regulatory body such as the OUR must identify training and development opportunities
for its personnel who are required to perform highly complex and technical duties, and compete
against the best that the regulated companies have to offer. Utility regulation is a highly technical,
specialized and exclusive vocation, hence the need to provide the OUR’s professional staff with on-
going training offered by internationally recognized training institutions. This imperative is reflected in
the allocation of significant budget resources to this function.
2.31. This Department ensures that the OUR is organised and that administrative functions are performed
smoothly and efficiently. The Department also manages staff recruitment and performance evaluation
using modern techniques.
2.32. The Department also has responsibility for managing and reporting on procurement, particularly with
regard to compliance with Government of Jamaica requirements. This is a critical function, given the
need to ensure transparency, strict adherence to the Government of Jamaica Handbook of Public
Sector Procurement Procedures. In preparation for ISO 9001:2008 certification, the Department has
updated and will maintain standard operational and procurement procedures that will complement the
public sector rules and procedures.
Finance Department
2.33. The Department directs, coordinates, monitors and controls the accounting and financial operations of
the OUR in accordance with Government of Jamaica regulations and directives, the Laws of Jamaica,
and International Accounting Standards.
Objectives
2.34. To direct the financial management functions of the OUR ensuring effective planning and utilisation of
financial resources. In carrying out the objective the Department will:
• prepare the annual budget and monitor performance against the budgeted allocations;
49
• prepare and analyse monthly, quarterly and annual financial statements;
• conduct treasury management functions, ensuring a balanced portfolio;
• establish the regulatory fees for each regulated entity;
• ensure sound cash management;
• manage human resources so as to optimise performance;
• ensure a robust quality management system is maintained in the Department;
• ensure that there is cost control;
• ensure compliance with statutory requirements, in particular, the provisions of the Public Bodies
Management and Accountability Act (PBMA), and the Financial Administration and Audit Act (FAAA);
• ensure that all financial records pertaining to externally funded projects are carefully documented,
and that disbursement requests are settled in a timely manner;
• organise and prepare accounts for annual audit;
• address any other matters likely to affect the financial well-being of the OUR; and
• update and maintain procedures for financial accountability.
2.35. The Financial Controller’s role is critical to budget preparation and monitoring, cost management and
ensuring maximum delivery of services for regulatory dollars. Additional responsibilities and duties
performed by this Department include negotiating group health insurance and administering the group
pension plan and the staff loan facility.
Information Technology (IT) Department
2.36. The IT Department is pivotal to the successful execution of all activities in the work programme. The
Department’s work planning process examines plans and priorities for the use and delivery of
information technology in support of each three year work plan of the OUR. As a support, IT
Department has focused on delivering fast, accurate, secure information with a minimum of downtime.
This, among other things, includes the development and maintenance of a comprehensive relational
database system to allow an efficient discharge of OUR’s responsibilities.
2.37. The OUR relies on this Department to:
• obtain and maintain standardised information from all service providers in the form of a Regulatory
Management System which is secure, scalable and easily accessible;
• leverage technology to improve turnaround time and deliver service cost-effectively;
50
• provide real time information and cutting edge research; and
• deliver a suite of services electronically.
3.1. The IT Department will achieve this through the integrated Regulatory Management System (targeted
areas include: Business Intelligence/Data Analytics; Stakeholder Management; Electronic Filing;
Geographical Information; Library and Record Management; Automation of office systems and
Online/Mobile Applications), training and investment in relevant hardware and software. The IT
Department will continue the process of ensuring that there is a greater technology culture throughout
the organization.
51
3. STATUS REPORT AND REVIEW OF ACTIVITIES in 2015/2016
3.2. 2015/2016 was another eventful year for the regulated sectors.
As in previous years a number of unforeseeable demands made it necessary to adjust timetables and re-
deploy resources. This is evidenced by some changes in the plan with the introduction of new activities
and delays in others.
3.3. Notably, there were a number of amendments to the regulatory framework during the year which have
implications both for the way in which the OUR discharges its responsibilities as well as the scope of its
work. These included amendments to the JPS Amended and Restated All-Island Electric Licence 2011, the
enactment of a new Electricity Act and substantial amendments to the Office of Regulation Act. Even so,
the work work-plan remains essentially on schedule.
3.4. The following constitutes a status report on the various projects and activities, the major achievements
and the variations in the schedule for fiscal year 2015/16.
Electricity Sector
Electricity Sector 2015/16 Goals
3.5. Within the parameters of the Government’s stated policy objectives, the developments in the sector,
and the existing regulatory framework, the goals identified for the electricity and energy sector for the
period were set out as follows:
ELECTRICITY SECTOR GOAL I
3.5.1. Pursue regulatory initiatives aimed at lowering retail rates below US thirty cents per kilowatt hour in
the medium term, and below US twenty cents per kilowatt hour in the long term, and to improve
market efficiency.
ES1.1: Create and maintain a regulatory environment that is conducive to attracting a diverse range of
investment in the sector (private, public, and private-public);
ES1.2: Ensure clarity and consistency in regulatory policy for the sector
ES1.3: Decrease electricity losses
ES1.4: Create and maintain incentives for efficient fuel usage and generation
ES1.5: Foster competitive electricity dispatch;
52
ES1.6: To the extent allowed by law, promote competitive solutions to the needs of electricity
consumers
ES1.7: Establish and ensure smooth process for interconnection on the grid
ES1.8: Ensure that Tariff review process is fair and prudent
ELECTRICITY SECTOR GOAL II
3.5.2. Maintain system stability and sustainability.
ES2.1: Modernization of the different elements of the electricity infrastructure (generation,
transmission, distribution)
ES2.2: Carry out audit and surveillances; and require the conduct of risk analysis and planning
ELECTRICITY SECTOR GOAL III
3.5.3. Diversify the energy supply mix beyond what currently exists to reduce the country’s dependence on
heavy fuel oil (HFO) over the medium to long term.
ES3.1: Increase the component of electricity supply provided from renewable
sources.
ES3.2: Promote switching of fuel supply from expensive HFO’s to cheaper fuel sources
ELECTRICITY SECTOR GOAL IV
3.5.4. Attain measurable improvements in the delivery of services to customers in respect of: service
interruptions, variability and response to complaints (consumer protection), and greater consumer
empowerment.
ES4.1: The creation and implementation of measures for timely resolution of consumer complaint
53
Table 3-1. Electricity Sector Major Projects Review
Major
Activities
Summary Description of Activity
De
pt.
S.U.C.C.E.S
.S. Criteria
Impacted
Output/Perfor
mance
Indicator
Stat
us
No
t St
arte
d/O
n-
goin
g/C
om
ple
ted
) Comments
ES1 - Pursue regulatory initiatives aimed at lowering retail rates below US thirty cents per kilowatt hour in the medium term, and below US
twenty cents per kilowatt hour in the long term, and to improve market efficiency.
JPS Price Cap Annual Adjustment
The non-fuel base rate for JPS is reset at five-year intervals in accordance with condition 15 of the JPS Amended and Restated All-Island Electric Licence, 2011. As at November 28, 2014, the 2014 Price Cap Regime is being finalized. The regulatory framework for price controls is outlined in schedule 3 of the licence. JPS is expected to submit its next filing for rate adjustments on or before March 1, 2015, and subsequent annual filings until March 2018. The licence states that if the filing is not deficient to the extent that it will prevent the complete evaluation of the application, the Office shall accept the filing within ten (10) working days following certified delivery. The filings by JPS should include support for the performance indices, the Consumer Price Indices (CPI) and the proposed non-fuel based rates for electricity. The filings should be made to the Office at least sixty (60) days prior to the adjustment date of June 1, 2015. The OUR will also review the efficiency levels (system losses and the heat rate), and where appropriate adjust these in the tariff.
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d E
nfo
rcem
ent
Service Efficiency
Determination Notice
produced within agreed
time frame
Completed The OUR in the Determination Notice reaffirmed that it will conduct an audit of the energy demand data. The RFP and TOR for a suitable consultant to undertake the audit are being developed. A new project line item “Audit of JPS Metering and Customer Information Systems” should now be inserted.
54
Major
Activities
Summary Description of Activity
De
pt.
S.U.C.C.E.S
.S. Criteria
Impacted
Output/Perfor
mance
Indicator
Stat
us
No
t St
arte
d/O
n-
goin
g/C
om
ple
ted
) Comments
Accounting Separation Guidelines
“Accounting separation” involves the de-construction of a company's accounts in order that the costs and revenues associated with each production and/or service unit can be identified, functionalized and appropriately allocated. It is the OUR’s responsibility to: a. develop and issue the Notice of Proposed
Rulemaking to stakeholders; b. conduct consultations on the Rules; c. refine the Rules; d. issue the OUR Determination on the Rules; e. review JPS’s Allocation Manual; f. review the accounts developed; and g. make appropriate adjustments to the Rules.
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d
Enfo
rcem
ent
Efficiency Completion of consultation and presentation of draft rules by the end of the fiscal 2015/16
The draft NPRM was
revised during the period and
was on track to be issued for
consultation and
feedback before the
end of 2015.
This activity has been the subject of a number of scheduling changes over the period but is now being treated as an imperative.
55
Major
Activities
Summary Description of Activity
De
pt.
S.U.C.C.E.S
.S. Criteria
Impacted
Output/Perfor
mance
Indicator
Stat
us
No
t St
arte
d/O
n-
goin
g/C
om
ple
ted
) Comments
Efficiency Improvement/Demand Management/Loss Reduction
To be done after tariff review determination. As part of its determination on the JPS 2014 tariff application the OUR has determined a number of initiatives to be pursued to reduce losses (technical and non-technical).
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d E
nfo
rcem
ent
Efficiency TBD ongoing OUR assisted in organising a Loss Reduction Workshop which took place from June 9th to June 11th, 2015. Following the workshop the World Bank through the ESMAP, invited representatives from the Jamaica Social Investment Fund (JSIF), the JPS and the OUR to visit in New Delhi India to see how the innovative slum electrification approach was designed. A number of subsequent activities are to be determined after further consultation with JPS, international stakeholders and OUR.
56
Major
Activities
Summary Description of Activity
De
pt.
S.U.C.C.E.S
.S. Criteria
Impacted
Output/Perfor
mance
Indicator
Stat
us
No
t St
arte
d/O
n-
goin
g/C
om
ple
ted
) Comments
Merit Order Dispatch
As stipulated at Condition 23 of the JPS 2011 amended All-Island Electric Licence, the OUR will provide the necessary oversight to ensure that the generation sets and each authorised electricity operator are dispatched in accordance with a merit order system that is least cost and in conformance with the Generation Code. The cost of fuel used for the production of electricity is treated as a pass-through to electricity customers subject to an efficiency adjustment, using the heat rate target set by the OUR. This approach was adopted with the aim of providing incentives to JPS to improve the overall energy conversion efficiency of its generating system, and to provide a degree of flexibility for operation under adverse system conditions beyond its control. The report of a Management and Operational Audit commissioned by the OUR in the 2014/15 fiscal year underscored the need for the OUR to interrogate the dispatch function performed by JPS and which is reported on daily. The report also recommended that there should be a specific requirement for JPS to flag and include in its reports to the OUR any system constraints which result in out of merit operations of a plant. Consistent with these recommendations, the OUR will develop an appropriate incentive mechanism informed by technical audits, that will incentivise JPS to address any constraints which result in out -of merit operations of any plant
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d E
nfo
rcem
ent
Efficiency Completion of a reporting and monitoring framework by end of 2015/16
Ongoing but under review
The new Electricity Act made specific
provisions regarding
oversight of the despatch
functions. Some of these changes have implications for this activity.
Consequently the OUR has begun to
engage the required
consultation process to
determine the modus operandi
and the new timetable.
57
Major
Activities
Summary Description of Activity
De
pt.
S.U.C.C.E.S
.S. Criteria
Impacted
Output/Perfor
mance
Indicator
Stat
us
No
t St
arte
d/O
n-
goin
g/C
om
ple
ted
) Comments
Economic Procurement of Fuel and Scrutiny of Fuel Inventory and Use
It is proposed over the period of the plan, 2015/2018, to review the fuel procurement mechanism to determine whether there is any potential for more cost effective procurement/sourcing of fuel by the power generation companies. This will involve exploration of possible incentives to encourage the construction/lease of storage facilities. An audit of fuel management for the sector was also completed in 2014/15. That audit raised a number of concerns that require further examination and may require regulatory interventions by the OUR. It is therefore anticipated that resources will be devoted to these activities over the work plan period, 2015/2018.
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d
Enfo
rcem
ent
Efficiency Reports and flagging of
unusual occurrences
Ongoing
58
Major
Activities
Summary Description of Activity
De
pt.
S.U.C.C.E.S
.S. Criteria
Impacted
Output/Perfor
mance
Indicator
Stat
us
No
t St
arte
d/O
n-
goin
g/C
om
ple
ted
) Comments
Review of the Electricity Market Structure Arrangement
The importance of competition as a means to enhance efficiency and consumer welfare is gaining momentum in almost all sectors and in all parts of the world. In the electricity sector different restructuring models have been employed by various countries to guarantee efficiency and consumer welfare. Notwithstanding the introduction of competition in the generation market modelled on the basis of the All-Island Electric Licence, 2001, Jamaica is yet to show significant benefits from progressive reforms in liberalizing the sector. It has therefore become necessary to review the current market arrangements with a view to offering policy advice as appropriate, and implementing regulatory arrangements where necessary. Specifically, the review will focus on addressing anomalies in the regulatory framework that may be inhibiting growth.
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d E
nfo
rcem
ent
Efficiency TBD Ongoing Draft TOR completed outlining the scope of the review. Draft TOR will be reviewed to update the scope in light of the new policy and institutional developments in the sector Revised schedule occasioned by the enactment of the New Electricity Act and external review of the regulatory regime. Revised date is February 2016
59
Major
Activities
Summary Description of Activity
De
pt.
S.U.C.C.E.S
.S. Criteria
Impacted
Output/Perfor
mance
Indicator
Stat
us
No
t St
arte
d/O
n-
goin
g/C
om
ple
ted
) Comments
Integrated Resource Plan
Work on the development of an Integrated Resource Plan (IRP) which includes a Least Cost Expansion Plan as a critical component started during fiscal year 2014/15, and is expected to extend into fiscal year 2015/16. The IRP aims to establish a framework for the development of the Jamaican electricity generation sector to provide a secure, reliable and efficient supply of electricity over the long term at least cost. Essentially, the IRP seeks to evaluate the technical and economic components of all feasible generation alternatives, and provide information and advice to facilitate the selection of the optimal generation expansion solution for the electricity sector and, by extension the country, over the long term.
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d
Enfo
rcem
ent
Sustainability
TBD ongoing TBD
60
Major
Activities
Summary Description of Activity
De
pt.
S.U.C.C.E.S
.S. Criteria
Impacted
Output/Perfor
mance
Indicator
Stat
us
No
t St
arte
d/O
n-
goin
g/C
om
ple
ted
) Comments
Cost of Un-served Energy (COUE) Study
The value of un-served energy is an economic concept that is intended to measure electricity consumers’ willingness-to-pay to avoid supply interruptions or, conversely, the willingness of electricity consumers to accept compensation for supply interruption. The COUE is the value (in US$ per kWh) that is placed on a unit of energy not supplied due to supply interruptions. The objective of the COUE study is to determine the COUE that will result in the optimum level of system reliability and cost to the utility and to its customers. The study will focus on the following approaches to estimate COUE:
value of production loss for each unit of power outage (production loss method);
cost of alternative or back-up power generation (captive generation method); and
willingness-to-pay (WTP) for reliable and uninterrupted electricity supply (WTP method).
The results from the study will provide guidance to the regulator and the utility on the consumers’ perceptions of quality and availability of power supply, and their willingness-to-pay different or higher tariffs for an improved power supply.
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d E
nfo
rcem
ent
Efficiency Completion of study and
presentation of final report
At pre-procurement stage
A draft terms of reference for undertaking the study was under review at the time of work plan preparation
61
Major
Activities
Summary Description of Activity
De
pt.
S.U.C.C.E.S
.S. Criteria
Impacted
Output/Perfor
mance
Indicator
Stat
us
No
t St
arte
d/O
n-
goin
g/C
om
ple
ted
) Comments
Wheeling Framework
Electricity wheeling refers to the transportation of electricity across the power grid by an entity producing its own power, to another geographic location where it is consumed. For such a service the entity would be required to pay a fee for the use of the transmission and distribution lines. While the OUR issued its wheeling Determination on July 9, 2013, it was challenged by JPS. The Electricity Appeals Tribunal which was called upon to adjudicate on the matter ruled on October 27, 2014 that the July 9, 2013 Determination should be set aside and the matter reconsidered. Consequently, the OUR is required to: a. Review the wheeling methodology; b. Recomputed wheeling rates based on an
updated “Cost of Service Study”; c. Issue a new Determination; d. Agree on a new timetable for the roll-out of
the Wheeling Framework; e. Finalize the supplementary Wheeling
Contracts; f. Oversee the implementation of the Wheeling
Framework.
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d E
nfo
rcem
ent
Efficiency Completion of Cost of Service
Study; & issuance of
determination on wheeling regime and
rates
Preliminary activities on determining a regime are underway.
62
Major
Activities
Summary Description of Activity
De
pt.
S.U.C.C.E.S
.S. Criteria
Impacted
Output/Perfor
mance
Indicator
Stat
us
No
t St
arte
d/O
n-
goin
g/C
om
ple
ted
) Comments
Electric Power Sector Policy and Legislation
Although it is projected that the new electricity legislation will be promulgated before the commencement of next financial year, we expect that there will likely be significant and substantial implementation work arising from the new legislation and regulations over the course of the 2015/16 FY.
Lega
l
Service Actions to enforce activities of the dates stipulated in the Act
ongoing
ES2 - Maintain system stability and sustainability.
63
Major
Activities
Summary Description of Activity
De
pt.
S.U.C.C.E.S
.S. Criteria
Impacted
Output/Perfor
mance
Indicator
Stat
us
No
t St
arte
d/O
n-
goin
g/C
om
ple
ted
) Comments
Transmission System Assessment
The framework for long term planning of the electricity system in Jamaica dictates that the Generation Expansion Plan (GEP) and outcome of any generation procurement process should form the basis for the expansion or reinforcement of the transmission system. Based on the orientation of the electricity system, the proximity of the main load centre relative to any proposed plant location suggests that electric power will have to be exported from the point of production to the point of utilization. This requires an assessment of the transmission system for adequacy in anticipation of any new generation capacity. This activity will require the grid operator to conduct a technical and economic assessment of the transmission system to determine the cost, adequacy, reliability, security, and stability of the system to transport the power from the proposed generation facility to the load. This will include, load flow studies, short circuit studies, transient stability studies, steady-state stability analysis and voltage stability analysis. The OUR will subsequently carry out independent technical and economic evaluation of JPS’s study to determine the least cost solution. Without this assessment, there will not be sufficient and precise information on the cost and capacity of the transmission system to reliably transport the power to the load.
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d E
nfo
rcem
ent
Sustainability
Presentation of report with assessment
Underway Preliminary review completed and updated review ongoing
64
Major
Activities
Summary Description of Activity
De
pt.
S.U.C.C.E.S
.S. Criteria
Impacted
Output/Perfor
mance
Indicator
Stat
us
No
t St
arte
d/O
n-
goin
g/C
om
ple
ted
) Comments
ES3 - Diversify the energy supply mix beyond what currently exists to reduce the country’s dependence on heavy fuel oil (HFO) over the medium to long term
Facilitating Investment in Renewable and Other Fuel Sources
Procurement of additional capacity fuelled from such sources as natural gas, coal and renewables is critical to reducing electricity costs. The OUR is no longer responsible for procurement but proposes to offer support both in terms of assisting with technical analysis and establishing an economic environment favourable to investment. In order to assist this process, the OUR proposes to construct models for shadow pricing and to update estimates of avoided costs to provide a basis for comparison and decision making.
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d E
nfo
rcem
ent
Sustainability
Completion of procurement process
On-track 37 MW Renewable RFP underway
Conversion of Bogue to Less Expensive Fuel
It has been established that converting the facility at Bogue to a lower cost fuel will afford a reduction in cost in the order of 3-5%, with a very short payback period. The OUR considers this a priority short term goal, and proposes to press for this conversion to be effected in the near term. Additionally, this is also expected to secure significant improvements in system stability and reduce complaints about failure to despatch within merit order. Monitoring of this activity and the savings that result from this conversion will be a major focus during the early months of the planning period.
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d
Enfo
rcem
ent
Efficiency Commissioning of new facility
On track
ES3 - Diversify the energy supply mix beyond what currently exists to reduce the country’s dependence on heavy fuel oil (HFO) over the medium to long term
65
Major
Activities
Summary Description of Activity
De
pt.
S.U.C.C.E.S
.S. Criteria
Impacted
Output/Perfor
mance
Indicator
Stat
us
No
t St
arte
d/O
n-
goin
g/C
om
ple
ted
) Comments
Natural Gas Legislation
The OUR has commented on the draft policy and legislation developed by the consultants engaged by MSTEM that will govern the proposed gas sector in Jamaica. It is anticipated that the OUR will continue to be engaged in stakeholder consultations and will be called upon to review draft legislation, and provide general advice and information to MSTEM throughout the process.
Lega
l
Efficiency TBD TBD Awaiting actions by the Ministry on this.
Revised Net Billing Regulation
The Standard Offer Contract with respect to the Net Billing Regulation has been developed to assist Jamaica in meeting its renewable energy supply targets by providing small electricity generators with a standard pricing regime. The Pilot Project was implemented on May 31, 2012, and came to an end on April 30, 2014. At the time of preparing this work-plan, two hundred and twenty -four (224) licences have been issued and one hundred (100) customers had been connected to the grid. A revised net billing regulation will ensure continued empowerment of the consumers while at the same time ensuring network stability.
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d
Enfo
rcem
ent
Efficiency Completion of review
Review completed and recommendations sent to Ministry
ES4 - Attain measurable improvements in the delivery of services to customers in respect of: service interruptions, variability and response to complaints (consumer protection), and greater consumer empowerment.
66
Major
Activities
Summary Description of Activity
De
pt.
S.U.C.C.E.S
.S. Criteria
Impacted
Output/Perfor
mance
Indicator
Stat
us
No
t St
arte
d/O
n-
goin
g/C
om
ple
ted
) Comments
Audit of JPS Billing System
This is being proposed to ensure that NWC has the procedures and systems in place to accurately bill its customers. This will involve the Department’s preparation of the Terms of Reference; procurement and selection of vendor and implementation.
Co
nsu
mer
an
d
Pu
blic
Aff
airs
Service Completion of audit
Preliminary procurement activities underway.
JPS Terms and Conditions of Service
This will, among other things, include a meter inspection protocol.
Co
nsu
mer
an
d
Pu
blic
Aff
airs
Service Promulgation of new Protocol and revise terms and conditions of service
Project to review meter testing protocol has commenced
67
The Telecommunications Sector Telecommunications Sector 2015/16 Goals
TELECOMMUNICATIONS SECTOR GOAL I:
3.5.5. Maximize Jamaicans’ access to and the adoption of affordable fixed and mobile broadband where
they live, work, and travel.
TS1.1: Maximize broadband adoption by promoting affordability and removing other barriers to
adoption by all Jamaican, including those with low incomes and disabilities.
TS1.2: Enable the private sector to accelerate the deployment and expansion of broadband
networks by minimizing regulatory and other barriers to broadband build out.
TS1.3: Measure and monitor the country’s progress on broadband.
TS1.4: Review of the telecoms universal service obligation to assess whether it is appropriately
defined to take account of future developments in the sector
TELECOMMUNICATIONS SECTOR GOAL II:
3.5.6. Ensure a competitive market for telecommunications services which will foster investment,
innovation, and to ensure that consumers have choice in affordable telecommunications services.
TS2.1: Ensure effective policies are in place to promote and protect competition for the benefit of
consumers.
TS2.2: Ensure retail prices of telecommunications services fairly reflect costs.
TS2.3: Remove barriers to the introduction of new entrants and the ability for smaller players to
effectively compete against existing service providers.
TS2.4: Reduce the barriers that customers face in switching operators.
TELECOMMUNICATIONS SECTOR GOAL III:
3.5.7. Ensure the continued protection of consumers through empowerment and knowledge of their rights
pertaining to ICT services as well as accessibility and the needs of persons with disabilities.
TS3.1: Promote transparency and disclosure.
TS3.2: Provide a sound framework for contractual services
TS3.3: Ensure consumers including people with disabilities have easy and reliable access to ICT
services
68
TS3.4: Harness technology to provide consumers with the information they need to make smart
decisions in their use of telecommunications services.
TS3.5: Act swiftly and consistently in the use of enforcement authority to protect consumers.
TELECOMMUNICATIONS SECTOR GOAL IV
3.5.8. Facilitate the availability of effective emergency access services as well as the availability of reliable,
interoperable, redundant, rapidly restorable critical telecommunications infrastructures that are
supportive of all required services
TS4.1: Facilitate the deployment of emergency access services and technologies with greater
capabilities.
TS4.2: Develop measures for protecting the nation’s critical telecommunications infrastructure
and facilitate rapid restoration of Jamaica’s telecommunications infrastructure and facilities
after disruption by from cyber-attacks or any other cause
TELECOMMUNICATIONS SECTOR GOAL V
3.5.9. Ensure the efficient management of scarce resources
TS5.1: Ensure fair and equitable access to telecommunications numbers by carriers and service
providers.
TS5.2: Ensure efficient and effective use of numbering resources to promote the growth and rapid
deployment of innovative and efficient telecommunications technologies and services.
TS5.3: Ensure customers benefit from an understandable numbering plan which provides them
with a broad indication of service and charges before they make a call.
69
Table 3-2. Telecommunications Sector Major Projects Review
Major
Activities
Summary Description of Activity
Dep
t.
S.U.C.C.E.S.S.
Criteria
Impacted
Output/Perf
ormance
Indicator
Stat
us
No
t St
arte
d/O
n-
goin
g/C
om
ple
ted
) Comments
TS1 - Maximize Jamaicans’ access to and the adoption of affordable fixed and mobile broadband where they live, work, and travel.
Broadband
Infrastructure
Inventory and
Public
Awareness in
the Caribbean
(BIIPAC)
The BIIPAC project by IDB and CANTO in February 2013. The
project is regional in scope and its main objective is to
develop a broadband diagnosis for each Caribbean country
and a series of broadband infrastructure maps for all the
countries. The project will improve the availability
broadband data thus giving a better understanding of the
current state of broadband infrastructure. This will enable
the Government of Jamaica to design public policy which
facilitates broadband deployment and adoption while
tailoring its market interventions to complement rather than
substitute for market forces. The deliverables also include
the development of public policy recommendations for the
design of national broadband strategies for each
participating country.
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d E
nfo
rcem
ent Coverage Broadband
Infrastructure
maps
On-going Evaluation of
RFPs completed –
MSTEM Awaiting
IDB Approval
70
Infrastructure
Sharing
Section 29A of the Telecommunications Act provides the
Office with the authority to mandate infrastructure sharing.
The reasoning for such rules is that duplication of
investment is a waste of resources. Moreover, in many cases
duplication is not feasible due to natural limitations e.g.
limited vantage points such as hilltops or inadequate space
for building additional towers. It is the OUR’s view that the
optimum utilization of resources can reduce the cost of
investment which will ultimately redound to the consumers
of telecommunications services. Infrastructure sharing will
also afford new entrants the opportunity to accelerate
service expansion. In addition to the cost savings, mandating
infrastructure sharing will also halt the deterioration of the
aesthetics of the country’s landscape and reduce the
environmental footprint of the telecommunications sector.
During the 2013/2014 fiscal year, OUR through CTO engaged
Pygma Consulting to recommend modalities for
infrastructure sharing, and to develop draft rules for sharing.
Due to some delays, the consultancy for this project did not
end until May 2014. It is therefore anticipated that aspects
of this project may run into the 2015/2016 fiscal year.
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d E
nfo
rcem
ent
Sustainability Rules for
Infrastructure
sharing
On-going Consultation Document is being prepared - Aim is to complete consultation by February 2016.
71
Establish
Broadband
Dashboard
Improving the country’s broadband infrastructure is a
prerequisite for a broadband-related economic impact.
Results from a World Bank econometric analysis of 120
countries showed that for every 10% increase in broadband
penetration, there is a 1.3 % increase in economic growth.
The results also showed that the growth effect of broadband
is stronger in developing countries. Policy tools are
necessary to promote broadband deployment and adoption
in order to realize broadband’s potential to contribute to
economic growth and the creation of jobs.
Originally this project had contemplated the development of
a National Broadband Plan/Strategy as well as a web-
accessible interactive broadband coverage map and
dashboard. However, it has been re-scoped and rescheduled
due to the launch of the BIIPAC Project. As noted earlier,
the BIIPAC project will develop broadband strategies and
broadband diagnosis and infrastructure maps for Caribbean
territories. OUR’s project will take place after the
completion of the IDB/CANTO project and will utilize the
data collected under that Project to develop a Broadband
Dashboard. It will also provide for the continuing update of
broadband indicators collected under the BIIPAC Project.
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d E
nfo
rcem
ent
Coverage TBD TBD Awaiting result of
IDB/ACANTO
study
72
Review of the
Universal
Service Regime
The OUR proposes to review the current universal service
regime (USR) to determine its appropriateness given sector
developments since it was first established in 2005. The
review will evaluate the level of compliance and the
effectiveness of the current model. The fundamental reason
for the USR is based on the reality that without it a number
of Jamaicans will be denied access to ICT services for two
reasons: either it is uneconomic for Licensees to serve
particular areas in Jamaica and/or the incomes of some
Jamaicans are too low for them to afford the services
available to them at their locations.
Currently the provision of universal service is funded by a
universal levy on incoming international call minutes. This
regime however, is under threat. Technological
developments over the last decade are resulting in changes
to the tariff structure for voice services. The increasing
prevalence of “Over the Top” (OTT) applications which
allows persons to place calls to and from Jamaica while
circumventing the international gateways of licensed
Jamaican carriers could significantly reduce the funds
available for universal service projects. Moreover, although
initially reluctant to ‘cannibalise’ their own voice services, as
VoIP competition and demand increase, it is anticipated that
incumbent carriers will increasingly, move to introduce VoIP
service offerings, thus putting an end to the “per minute”
billing approach. The USR therefore needs to be reviewed to
determine its viability as well as to address any market
distortions that the current model may have introduced.
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d E
nfo
rcem
ent
Coverage Completion of
review report
and
submission of
recommendati
on to Ministry
The
timetable
for this
item has
been
shifted to
fiscal
2016/17
A decision was
taken during the
year to
reschedule this
work activity
73
Information
and
Communication
Technology
(ICT) Legislation
In furtherance of the Government’s ICT Policy including the
promulgation of modern ICT legislation and the
establishment of a stand-alone ICT regulator, it is anticipated
that the OUR will be called upon to advise the MSTEM and
provide feedback to the consultants engaged by MSTEM as it
seeks to implement the policy. Lega
l
Service Initial
comment
submitte
d.
Additiona
l work to
be
determin
ed
The OUR has
provided MSTEM
with a list of
matters to be
considered for
treatment in the
new legislation
Telecommunica
tions Act
The 2012 amendments to the Telecommunications Act have
necessitated the promulgation of various rules and
regulations most of which has already commenced but will
be completed in the 2015/16 FY: Number Portability Rules;
Infrastructure Sharing Rules; Dispute Resolution Rules;
Quality of Service Rules; Consumer Complaints Procedures;
Powers of Investigation, Search and Seizure Rules; Unfair
Contract Terms Rules; Forbearance Rules; and Fixed penalty
offences.
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d
Enfo
rcem
ent
Service Completion of
draft rules for
submission.
Work
slated to
commenc
e on the
drafting
of
various
rules by
end of
fiscal
2015/16
Pre- procurement
of experts
activities have
started
TS2 - Ensure a competitive market for telecommunications services which will foster investment, innovation, and to ensure that consumers
have choice in affordable telecommunications services.
74
Development of
Fixed LRIC for
Fixed Networks
This project commenced in Fiscal 2014/2015 and should run
for eighteen months. The output from this project will also
provide data for two other projects on the Work Plan,
namely, the cost benefit and unfair burden test for
unbundling network elements on dominant operators and
the cost benefit and unfair burden test for indirect access
provision on dominant operators.
Interconnection charges that are based on the LRIC will
encourage operational efficiency and assist the OUR in
providing a level playing field for current operators and new
entrants. LRIC–based charges also encourage rational pricing
decisions on the part of the operators. At the very least, this
will reduce the variation in fixed termination rates across the
different networks. Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d E
nfo
rcem
ent Efficiency TBD On-going Determination on
Principles and
Methodology
published on July
2, 2015.
Broadband
Institutional
Framework
This Project contemplates an assessment of current
capabilities in the GOJ to develop information tools on the
current status of broadband in Jamaica. It will contribute to
improving policymakers’, regulators’, and operators’
understanding of the sector, thereby strengthening their
capacity to implement and monitor public policies for
increased broadband development.
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g
and
En
forc
emen
t P
olic
y
Mo
nit
ori
ng
and
En
forc
emen
t Service TBD On-going Evaluation of RFPs completed –MSTEM Awaiting IDB Approval
75
Conduct Sector
Review (Market
Definition and
Dominance
Assessment)
The OUR commenced a complete assessment of the
telecommunications sector to determine if there has been
any change in the markets which were previously defined
and whether additional markets now exist. The assessment
will also indicate which operators, if any, are to be classified
as dominant in those markets or whether existing dominant
operators should be reclassified as non-dominant. Given the
tasks associated with a sector review it is anticipated that
this project will continue throughout the 2015/2016 fiscal
year. The OUR is committed to evidence-based regulation
and will introduce regulation only where there is a
demonstrable need. The outcome of sector review will
therefore inform the OUR’s future work programme as it will
identify which markets require regulatory intervention.
Projects such as: Review of Data Rios for Fixed and Mobile
Networks; Establishment of Competitive Safeguards Rules;
Cost and Benefit and Unfair Burden Test for Indirect access
on Dominant Operators; and Cost and Benefit and Unfair
Burden Test for Unbundling of Network Elements of
Dominant Operators will all have to await the conclusion of
the Sector Review.
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d E
nfo
rcem
ent
Efficiency Sector Review
Report
On-going 5 proposals
received;
Technical
evaluation
completed. R.
Swaby is
preparing the
Evaluation
Report. Will
proceed to the
opening of 3
Financial
Proposals will
proceed
thereafter.
76
Review and
Harmonization
of Data RIOs
(Fixed and
Mobile)
Having mandated interconnection, regulators still need to
ensure that their rules are applied fairly. In most
jurisdictions this takes the form of a requirement for
dominant operators to develop a Reference Interconnection
Offer (RIO), the contents of which must be approved by the
regulator. The RIO provides a transparent basis for the
negotiation and conclusion of all agreements for the
provision of interconnection services that are subject to
regulation. It provides legal certainty to new entrants as
they can be certain that they are being granted
interconnection on terms which are no less favourable than
that accorded to other operators, including the retail arm of
the interconnection provider.
Currently, in the voice segment of the sector, there is an
obligation on all mobile carriers and LIME fixed network to
submit their RIOs for the OUR’s approval. The 2012
amendments to the Telecommunications Act make
interconnection obligation applicable to data networks.
Subsequent to the conclusion of the sector review, the OUR
will direct all dominant operators to submit RIOs, which
include data services, for its approval. The review will outline
the conditions under which dominant networks will
interconnect for the provision of data services. This will
make it easier for operators to establish interconnection
agreements with dominant operators for the exchange of
data traffic. As pricing is generally a key component of any
RIO, it will lead to cost oriented rates and a level playing
field for all operators which should foster greater
competition in the provision of data services.
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d E
nfo
rcem
ent
Efficiency TBD TBD
77
Cost Benefit
Analysis and
Unfair Burden
Test for: (a)
Provision of
Indirect access
by Dominant
Operators; (b)
Unbundling of
the Local Loop
of Dominant
Operators
One means of fostering competition in telecommunications
sector is by ensuring that all competitors have access to the
infrastructure under fair conditions and on a non-
discriminatory basis. Traditionally, two key regulatory
interventions have been utilized to achieve this outcome:
the provision of indirect access and the unbundling of the
local loop. Under the Telecommunications Act indirect
access means “the method whereby customers of a
particular carrier are able to access specified services
provided by another carrier through the
telecommunications network and the telecommunications
services of the first mentioned carrier with whom the
customer is directly connected; but does not include two
stage dialling”. In effect, indirect access allows entrants an
indirect method of accessing customers, and allows
consumers the opportunity to benefit from the services
offered by these entrants. Local loop unbundling is the
regulatory process of allowing multiple telecommunications
operators to use connections from the telephone exchange
to a customer's premises.
Whereas, the roll out of alternative local networks requires
huge investments and takes time, indirect access and
unbundling initiatives allow new entrants to enter local
markets and win market share more quickly. Also, regardless
of their modes of implementation, all indirect access and
unbundling initiatives are superior to “simple resale”
schemes both in terms of the quality and variety of service
offerings and pricing. Indirect access and unbundling
initiatives also facilitate the addition of independent and
enhanced functionalities that are not available through
simple resale schemes.
However, there are also claims that these initiatives could
undermine the investment and innovation incentives of both
incumbents and entrants. In such cases they could
eventually be detrimental to competition in that they retard
the roll- out of competing infrastructures. Therefore, before
it can make rules to impose an obligation to provide indirect
access or to unbundle its local loop on a dominant operator,
the Office must be satisfied on reasonable grounds that such
rules are necessary in the interests of customers and that –
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d E
nfo
rcem
ent
Efficiency TBD TBD Work on this is
contingent on
the result of
market review.
78
Establishment
of
Competitive
Safeguards
Rules
Access regulation reduces the barriers for competing
operators to enter and compete in downstream markets. It
also encourages existing and new operators to invest in new
infrastructure. If competition at the wholesale level is not
effective, the consumers could end up paying higher prices
for the products and services at the retail level. Upon the
conclusion of the sector review project, the OUR in
accordance with Section 35 of the Telecommunications Act
will seek to introduce competition safeguards, where
necessary, to prevent the abuse of dominance by a public
telecommunications carrier in its provision of access
services/facilities. Among other things the safeguards will
seek to address equivalence and transparency obligations,
particularly the obligation to protect wholesale customer
information. Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d E
nfo
rcem
ent Efficiency TBD TBD
Establishment
of Quality of
Service Rules
(Wholesale)
Consistent with its mandate under the Telecommunications
Act, the OUR intends to establish quality of service standards
for wholesale telecommunications services/facilities through
the development of rules. The rules will apply to Licensees
who make their services/facilities available as a wholesale
product. Similar to the exercise conducted for the retail
services, the rules will create conditions for consumer
satisfaction by making known the quality of service/facilities,
which a Licensee is required to provide, and the wholesale
user has a right to expect. Along with the competitive
safeguards, these standards will ensure that the quality of
service provided to services-based Licensees is the same as
that provided to the retail arm of the entity which operates
the network. In addition to ensuring an open and efficient
telecommunications marketplace the rules should also assist
in the development of related ICT markets.
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d E
nfo
rcem
ent
Efficiency TBD TBD
79
Regulatory
Framework
for Mobile
Virtual
Network
operators
The introduction of MVNOs is seen as a natural progression
in the facilitation of competition in the telecommunications
sector. The MVNO model has gained popularity globally, and
new value added services are constantly emerging. Given
that MVNOs tend to focus on niche markets, it is believed
that valued-added niche services are better handled by
these operators. The OUR will examine a variety of issues
including: - MVNO models, benefits, and the licensing,
technical and regulatory implications of MVNO entry. This is
the formulation of a system to outline how Mobile Virtual
Network Operators (MVNOs) will be regulated. This will
address the rights and responsibilities of these virtual
operators and their interactions with facilities based
operators.
This could increase the level of competition in the provision
of the prescribed services. Consumers would therefore be
afforded more options in terms of service providers and
types of services. This should eventually lead to lower and
more efficient prices.
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d E
nfo
rcem
ent
Sustainability TBD TBD Reschedule
because of
resource
constraint
80
Regulatory
Framework
for Next
Generation
Networks
The migration to Next Generation Networks (NGNs) has
significant implications for the architecture and design of the
access and core networks of the telecommunication sector.
At a wider level, it also has implications for the service value
chains and business models in the ICT sector. As a result of
these changes the nature and scope of competition in the
sector will be affected. This implies a need for regulatory
changes such as adjustments in how markets in the sector
are analysed and the design of appropriate remedies. In
some instances, the changes in the character of competition
associated with the migration to NGN could in the long term
mitigate the need for ex ante regulation, however in the
near to intermediate term important competition
bottlenecks are likely to persist. What is clear is that
appropriate responses and potential regulatory instruments
for an NGN environment might be different from those
which the OUR currently utilizes. Adapting current
regulation to NGN and transitional services may therefore
not be the best way to proceed to achieve the best outcome
for the development of NGNs in Jamaica. The establishment
of clear and transparent NGN regulations will promote
broadband and advanced services for users, promote
innovations, and ensure customer security and protection.
Besides improving competition and services for businesses
and individuals, the establishment of an NGN regulatory
framework will help to lower the overall financial costs of
operators deploying and using NGN networks. It will also
engender legal certainty for investment in Next Generation
Networks. The framework will encourage efficient
investment and use of investment in NGNs and associated
services as well the maintenance of legacy networks. The
reform of access rules will reaffirm the importance of
competition in the sector and at the same time preserve the
incentives to invest by taking into account the risks involved
in allowing access to NGN networks.
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d E
nfo
rcem
ent
Sustainability TBD TBD Reschedule
because of
resource
constraint
81
Pre and Post
Number
Portability
Implementati
on Activities
Number portability (NP), the so-called last barrier to
competition in a liberalized telecommunications
market, is one of the tools available to a regulator to
improve market competitiveness and provide
consumers with the benefits of increased choice, lower
prices and improved quality. NP gives consumers the
ability to switch between telecommunications service
providers without undue cost, anxiety and
inconvenience which are likely consequences of
necessarily having to change telephone numbers when
switching service providers.
The OUR has been and will continue to be substantially
engaged in the requisite pre-NP- implementation
activities as a member of the Interim NP Working
Group (INPWG) established by the Ministry, and of the
associated Commercial/Business Subcommittee and
Technical Subcommittee—as chair of the latter.
The OUR will continue to participate in: the
development of industry number portability guidelines,
and a Code of Practice; development of a revised NP
implementation plan; and development of an NP test
plan.
The OUR will conduct the selection (for licensing, in
accordance with sections 10 – 13 of the
Telecommunications Act) of a suitably qualified person
to provide Number Portability Administration Services
to licensed telecommunications carriers and service
providers in Jamaica by means of a Central Reference
Database and an automated Order Handling process for
inter-operator communications.
The OUR’s post-implementation activities will include
the identification and resolution of technical and
commercial/Business issues associated with the fixed
and mobile NP implementations, and after the NP
Working Group ceases to exist, ongoing regulatory
oversight of number portability administration.
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d E
nfo
rcem
ent
Service Industry
Number
Portability
guidelines
On-going NP was launched
on June 22, 2015
– The Working
Group and Sub-
committees are
still working on
Post
implementation
issues
82
Telecommunic
ations Market
Information
Quarterly
Report
Consistent with the OUR’s mandate to promote
competition, the OUR collects and analyses data on the
telecommunications. The continuous monitoring of trends
and developments in the telecommunications sector allows
the OUR to determine the level of competition in each of the
telecommunications markets which it regulates. The OUR
also compiles and publishes quarterly reports on
information received from the telecommunication
operators. The public availability of data for the
telecommunications sector assists in raising the awareness
about Jamaica’s status in international and regional fora and
encourages investment in telecommunications projects and
services.
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d
Enfo
rcem
ent
Compliance
Sustainability
Quarterly
Report
On-going
TS3 - Ensure the continued protection of consumers through empowerment and knowledge of their rights pertaining to ICT services as well as
accessibility and the needs of persons with disabilities
Ensuring
equivalence in
access and
choice for
disabled end-
users
The OUR is of the view that ensuring the provision of
services for Jamaican consumers with disabilities is
becoming increasingly important to ensure that all
Jamaicans can benefit from new ICT services and fully
participate in the fulfilment of Vision 2030. Improved access
to telecommunications services will allow persons with
disabilities to participate fully in community life and feel the
effects of social cohesion. The Project will assess whether or
not access and choice for end-users with disabilities is
equivalent and identify and implement measures to address
issues identified with respect to ensuring equivalent access
and choice.
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d
Enfo
rcem
ent
Coverage TBD On-going A summer intern
was hired to draft
a Position Paper
on the issue as
well as a survey
instrument.
Project is in
abeyance
awaiting new
recruits.
83
Review of
Unfair terms
in
Telecommunic
ations
contracts
The ability of sellers to structure their contracts in a one-
sided fashion is generally due to them taking advantage of
the classical theory of contract law which is based on the
premise that people have the freedom to contract with
whomever they like and on the terms that they like. The
theory works however on the assumption that both parties
to the contract have equal bargaining (negotiating) power
and will therefore agree to terms that accord with their
interests.
However, this is not the case in the telecommunications
sector where operators rely heavily on standard form
contracts which contain terms that cause a significant
imbalance in the parties’ rights and obligations arising under
the contract. Notwithstanding the caveat emptor principle,
it is also often difficult, if not impossible, for untrained
consumers to make a competitive comparison between
operators’ offerings. Also in many cases no true alternative
exists as the other operators’ standard contracts form will
have similar, if not the same, terms and conditions. In many
jurisdictions the onus is on the telecommunications
regulator to protect consumers by ensuring that unfair
terms are removed from contracts for telecommunications
services. According to Section 44(5) of the
Telecommunications Act the Office may –“ a) examine
customer contracts in respect of facilities or specified
services; and b) direct the modification of any term of such a
contract which appears to the Office to be unreasonable
or unfair." To date the OUR has generally refrained from
intervening in contractual matters for telecommunication
services in retail markets. There are concerns however, that
some of the contract terms for retail telecommunications
services such as long contract durations coupled with
excessive early termination charges create barriers that
unfairly prevent consumers from terminating services and
switching operators. The OUR believes that it is therefore
timely to review current industry practices to ensure that
they remain reasonable and fair to both operators and
consumers. The enforcement of unfair contract terms
regulations will support competitive markets thus benefiting
consumers and the economy as a whole.
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d E
nfo
rcem
ent
Service Review with
Recommendat
ions
Not
Started Pre-
procurement
activities to
engage
expertise to
undertake this
activity
underway
84
Audit of
Mobile Signal
Coverage
The availability and quality of modern telecommunications
services are critical elements for Jamaica’s economic success
and social inclusion of all citizens. As outlined in Notice of
Proposed Rulemaking – Quality of Service Standards for the
Telecommunications Sector telecommunications licensees
will be required to measure and report on several qualities
of service parameters. However, the licensees will be
reporting on a national basis which means that there may be
cases where all operators have met the prescribed standard
but consumers in pockets of the country may be
experiencing no or poor quality service. An audit will allow
the OUR to discover which areas of the country may be
experiencing such problems thus giving it a holistic view of
the exact availability of mobile coverage and mobile services
in Jamaica. By identifying areas in Jamaica that currently
have and those that currently lack mobile coverage the
results of the audit can also assist the OUR and Government
in decision-making with respect to the provision of
telecommunications services to those areas that are
currently unserved or underserved.
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d E
nfo
rcem
ent
Uptime Audit report
and
establishmen
t metrics and
system for
measuremen
t and
monitoring
To be
addresse
d as
apart of
2016 -
2019
work
plan
Reschedule
because of
resource
constraint
85
Establish
platforms
which provide
more
information to
consumers
e.g. price
comparison
website,
broadband
speeds.
The number of telecommunications offerings has increased
over the last number of years, giving consumers greater
choice when considering their telecommunications needs.
The increased offerings have been accompanied with
increasingly complex rate structures which impose different
restrictions on the use of the service. For instance there is a
range of mobile service plans offering different
combinations of monthly charges, on/net and off/net rates,
peak and off-peak rate, and free minutes/texts. Even in
circumstances where the information available to
consumers is not misleading, constraints on consumers’
ability to process information relating to the price and
quality of a service can result in decisions that are welfare-
reducing.
If prices are presented in a more comprehensible and
standardised form this can assist consumers in their
comparison of service offerings. Regulators therefore have a
role to play in enabling consumers to make effective choices.
This could be achieved by prescribing the manner in which
operators should present information to their consumers or
by the regulator establishing tools/platforms that provide
price and quality (e.g. broadband) comparison information
or accrediting intermediaries to provide such
tools/platforms. Such tools could include calculators which
allow consumers to enter preferences and usage pattern
data to enable them to make price comparisons in complex
markets. During the 2015/2018 period the OUR intends to
develop and/or facilitate the development of tools which
ensure the wide availability of effective price comparison
information
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d E
nfo
rcem
ent
Service Platforms
established
Not yet
started
but still
envisage
to
commen
ce in
fiscal
2015/16
TS4 - Facilitate the availability of effective emergency access services as well as the availability of reliable, interoperable, redundant, rapidly
restorable critical telecommunications infrastructures that are supportive of all required services
86
Policy Paper
on the
Modernization
of Emergency
Services
Under Section 48 of the Telecommunications Act “every
service provider shall take such steps as are necessary to
ensure that, in relation to its retail public voice services each
customer of that service can reasonably and reliably reach
emergency services by dialling the numbers specified for use
in connection with such services”. Recent developments
have revealed that there is a need for a centralized
emergency centre to handle all types of distress calls from
citizens. Currently, calls to 119 are answered by the police
while calls to 110, 112, and 911 from all networks are being
answered by LIME’s call centre. LIME has advised the OUR
that it no longer wishes to provide that service to other
Licensees. Under the Act LIME is not obligated to provide
such services to other Licensees. The OUR has since advised
the Licensees of LIME’s intentions and commenced a
dialogue regarding their obligation to take such steps as are
necessary to ensure that emergency calls are being
answered and routed to the appropriate emergency
services. In light of these developments, the OUR is of the
view that the creation of a centralized emergency call centre
may be a more efficient mode of handling emergency and
should be explored. With such a set-up, all calls to national
emergency numbers would be routed to the same call
centre regardless from which network the call is placed.
Globally, emergency service providers are leveraging new
mobile and fixed technologies to ensure that they can
deliver emergency services in a more efficient manner. In
the United States the introduction of enhanced emergency
services has resulted in a physical address being
automatically associated with the calling party's telephone
number. In India, a non-profit organization offering
emergency management services has devised a mobile
application that automatically picks up the location of the
caller and sends the information to a centralized call centre.
With such services a caller's address and information is
displayed to the person taking the emergency call
immediately upon the arrival of the call. This type of service
is particularly important in emergencies such as fires, break-
ins and kidnapping where communicating one's location is
difficult and/or risky. By providing emergency responders
with the location of the emergency without the person
Reg
ula
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olic
y M
on
ito
rin
g an
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nfo
rcem
ent
Safety &
Security
Policy Paper underwa
y
87
Development
of Cyber
Security
Standards
Standards/Bes
t Practices for
Critical
National
Information
Infrastructure
(CNII)
Information technology has transformed the global
economy and connected people and markets in ways
never imagined. The number of production operations
and human activities that directly or indirectly depend
on ICTs is growing at a significant rate. Cyberspace
provides a platform for innovation and economic
development and therefore the means to improve the
general welfare of the Jamaican citizenry. However, the
multi-jurisdictional reach of cyberspace and the
difficulties it presents for regulation pose numerous
risks to nations, private enterprises, and individual
rights. Globally, cyber threats such as targeting,
phishing scams and data theft have been increasing in
volume and sophistication. This coupled with the
growing dependence on information and
communication technologies, means that the risk to
Jamaica’s economic and social wellbeing from cyber
threats is high. Worldwide, societies are becoming
more highly dependent on information technology and
this makes CNII a very attractive target for cyber
security threats. Globally, there has been a significant
increase in premeditated attacks. Such attacks have
potentially catastrophic effects not just to the country
whose CNII is the target of the attack but also to
interdependent network and information systems
globally. The increase in attacks, the rapidly changing,
dynamic nature of cyber threats and the global
connectivity of information technology systems makes
it critical that Jamaica protects its CNII. The recent
IMPACT /ITU report on the “Readiness assessment for
establishing a national CIRT in Jamaica” has also
recommended that MSTEM and OUR encourage the
use of Cyber Security standards and best practices that
are relevant to the country.
It is envisaged that the cyber security standards and
best practices for CNII will ensure that:
• businesses in Jamaica operate secure and
Reg
ula
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n, P
olic
y M
on
ito
rin
g an
d E
nfo
rcem
ent
Safety &
Security
TBD TBD
88
TS5 - Ensure the efficient management of scarce resources
Review and
Revision of
the Jamaican
National
Numbering
Plan, the
National
Dialling Plan,
and the
Telecoms
Numbering
rules.
Numbering is a scarce national resource and a key feature of
the telecommunications infrastructure that facilitates the
introduction of competition in the telecoms markets. Thus,
as the industry evolves and available technologies continue
to open the way to new number-demanding services and
applications, the national numbering plans and supporting
regulations must be adapted to ensure: relevance of the
plans, adequate resource capacities to meet current and
reasonably anticipated future needs of carriers and service
providers, and the availability of effective controls to ensure
competitive fairness.
This project will take account of locally implemented
numbering changes and investigate other numbering
developments internationally, to review and revise of the
Jamaican National Numbering Plan, the National Dialling
Plan, and the Telecommunications Numbering Rules.
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d E
nfo
rcem
ent
Sustainability TBD TBD
89
Investigation
and
recommendati
on on charging
for numbering
resources.
The matter of charging for numbers has been given
consideration by industry authorities in several
countries. Key reasons are: (1) holders of numbers
make profit out of the numbering space they use; (2)
the need to explore and assess the intrinsic value that
certain numbers contain—golden numbers, especially
those with mnemonics, may be considered to be worth
more than ordinary numbers because of their limited
availability and the extra value associated with the
services to which they provide access; (3) the general
scarcity of the resource and the need for judicious use
and conservation. This project will investigate industry
practices in relation to charging for numbering
resources to advise on a framework of charging for
primary and secondary assignments of numbers for
public telecommunication services. The investigation
will consider separate charging for regular and special
numbers, auctioning of special numbers, leasing of
numbers, etc. This is in anticipation of the legislation of
current policy provisions that is intended to allow the
OUR to charge for numbering resources.
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d E
nfo
rcem
ent
Efficiency TBD TBD
90
Investigation
and
recommendati
on on
extraterritoria
l use of
Jamaican
E.164
telephone
numbers for
nomadic
telecoms
services.
The deployment of broadband access and the use of
VoIP technologies to provide commercial IP-based
telephony services are rapidly providing an inexpensive
alternative to traditional telephony services. IP-based
telephony is a fast growing telecoms technology sector
and has for some time provided potential business
opportunities for local operators and increased service
access to potential Diaspora customers. This project is
an industry consultation on extraterritorial use of
Jamaican E.164 telephone numbers for nomadic
telecommunication services requiring the use of
numbers.
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d E
nfo
rcem
ent Service
Efficiency
TBD TBD
91
The Water Sector Water and Sewerage Sector 2015/16 Goals
3.5.10. Having regard to the Government’s stated policy goals, the existing structure of the water and
sewerage sector and the legal framework, the goals for the water and sewerage sector are:
WATER AND SEWERAGE SECTOR GOAL I
3.5.11. Increased access to potable water and sewerage services in keeping with the objective of universal
access to potable water;
WSS1.1: Establish a regulatory environment that encourages and facilitate ease of investment in the
water sector
WSS.1.2: Adopt a regulatory approach that facilitates to the extent allowed by the existing policy and
statutory framework, competition for and within the market;
WATER AND SEWERAGE SECTOR GOAL II
3.5.12. Efficient, sustainable and quality of service oriented water and sewerage service providers.
WSS2.1: Implement a range of enforcement tools to encourage efficiency and compliance with good
quality and customer care standards
WSS2.2: Ensuring that regulatory decisions regarding water and sewerage services take account of
environmental concerns
WATER AND SEWERAGE SECTOR GOAL III
3.5.13. Securing measurable improvements in service delivery with respect to the availability and reliability
of potable water and sewerage services;
WSS3.1: Provide stakeholders in the water sector with relevant information on a timely basis
WSS3.2: Creating a culture of target setting and performance measurement in the water s
92
Table 3-3. Water and Sewerage Sector Major Projects Review
Major Projects/Activ
ities
Summary Description of Project /Activity
De
pt.
S.U.C.C.E.S.S. Criteria Impacted
Output/Performance Indicator
Stat
us
No
t St
arte
d/O
n-
goin
g/C
om
ple
ted
) Comments
WSS1 - Increased access to potable water and sewerage services in keeping with the objective of universal access to potable water
Survey of Water Needs and Geographic Capacity Planning
The purpose of this project as envisaged is to determine the water needs of Jamaica, the potential for providing solution to the shortfall and to inform sector planning. Some of this will be a detailed review of geo-information on existing water and sewerage networks (location, capacity, consumer base, etc.,), projections for increase demand for these services (based on planning, economic growth, location etc.,) and assessment of potential sources of supply (capacity, cost, environmental consideration, etc.). Some of the activities will be desk based but is it envisaged that the services of independent consultants/professional will also be to undertake this activity. A major consideration will also be to ensure that there is the engagement of all key stakeholders. R
egu
lati
on
, Po
licy
Mo
nit
ori
ng
and
En
forc
emen
t Coverage Result of survey Rescheduled to the
2016 – 2019
work plan period
TBD
93
Major Projects/Activ
ities
Summary Description of Project /Activity
De
pt.
S.U.C.C.E.S.S. Criteria Impacted
Output/Performance Indicator
Stat
us
No
t St
arte
d/O
n-
goin
g/C
om
ple
ted
) Comments
Pre-feasibility study on the role of Public Private Partnership in the sewerage sector
Traditionally, the financial resources available to the NWC does not allow for the required level of investment needed for the growth and development of sewerage treatment facility throughout the island. This project will seek to examine the feasibility of Public Private Partnership (PPP) in the sewerage sector and the various forms of construction support that could be provided for by the PPP’s whether to Build Design Operate, Build Operate Transfer, or Build Own Operate.
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d E
nfo
rcem
ent
Coverage TBD TBD
Water Sector Policy
It is anticipated that in the 2015/16 FY the OUR will be making representations, and have discussions with the Ministry of Water for the drafting and passage of legislation specific to the water sector.
Lega
l
TBD TBD Ongoing Comments to be provided before
end of fiscal 2015/16
WSS2 -Efficient, sustainable and quality of service oriented water and sewerage service providers.
94
Major Projects/Activ
ities
Summary Description of Project /Activity
De
pt.
S.U.C.C.E.S.S. Criteria Impacted
Output/Performance Indicator
Stat
us
No
t St
arte
d/O
n-
goin
g/C
om
ple
ted
) Comments
National Water Commission’s Impact Tariff
Impact fees are a charge on new developments to help fund capital improvements. A number of new development projects are taking place and in some cases these can be served by the existing National Water Commission (NWC) network, but other developments either require the construction of new facilities, or significant expansion to NWC’s existing network, before the developments can be served. The NWC has highlighted that in cases where new infrastructural projects have to be initiated to serve a development, an impact fee should be charged to assist in offsetting a portion of the capital cost required to construct the desired water or wastewater facility to enable that new development. An impact tariff also applies in public private partnership where the NWC may contract with private companies to provide improve services.
Reg
ula
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n, P
olic
y M
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ito
rin
g an
d E
nfo
rcem
ent
Efficiency Determination set of fees
Not done Approach is being reviewed
95
Major Projects/Activ
ities
Summary Description of Project /Activity
De
pt.
S.U.C.C.E.S.S. Criteria Impacted
Output/Performance Indicator
Stat
us
No
t St
arte
d/O
n-
goin
g/C
om
ple
ted
) Comments
Regulatory Assessment of Water Re-use
Growing water scarcity worldwide and the need to protect public health and the environment pose challenges for water professionals in implementing integrated management of water resources. Water reuse is considered as a competitive and viable water source option. It also potentially opens up opportunities for additional revenue streams for providers. The OUR deems it important as the regulator, to consider beforehand any regulatory implications of such development and how it might facilitate potential investment in this area. It is therefore intended to develop a position papers exploring the opportunities for, the regulatory implications if any, the nature of the market for this type of service and the environmental consideration.
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d E
nfo
rcem
ent
Sustainability Efficiency
TBD Not done Rescheduled for consideration as
part of 2016 2019 work plan period
96
Major Projects/Activ
ities
Summary Description of Project /Activity
De
pt.
S.U.C.C.E.S.S. Criteria Impacted
Output/Performance Indicator
Stat
us
No
t St
arte
d/O
n-
goin
g/C
om
ple
ted
) Comments
K-Factor Audit The purpose of the K –Factor project audit is to determine if the programme is being carried out effectively; the existing systems for administration and implementation are in place, and that the approved projects are completed and are producing the desired results. The result of the audit is intended to aid with the overall assessment of the programme in respect of providing information on the following: • whether the overall objectives of the K-Factor programme are being met and to what extent; • whether the programme has the requisite systems in place; • how K-Factor funds are deployed by NWC; • whether Non-Revenue-Water (NRW) is being reduced by K-Factor expenditures; • if the connection of sewerage systems to the Soapberry Plant is occurring as it should and; • if the volumes of sewerage from the individual systems and communities to the Soapberry Plant are being achieved; and • the extent to which NWC is utilizing the K-Factor proceeds to bring sewerage facilities in compliance with NEPA standards;
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d E
nfo
rcem
ent
Efficiency Result of audit Pre-procurem
ent activities
under way
97
Major Projects/Activ
ities
Summary Description of Project /Activity
De
pt.
S.U.C.C.E.S.S. Criteria Impacted
Output/Performance Indicator
Stat
us
No
t St
arte
d/O
n-
goin
g/C
om
ple
ted
) Comments
Rate Regime – Small Private Providers
Jamaica’s water sector policy encourages the participation of private water and/or sewerage providers. Presently, there are fourteen (14) licensed providers. The OUR is required to carry out economic regulations of the activities of all fourteen providers. These activities include: • determining an economic rate that will ensure cost recovery and also give a fair return on investment; • implement and oversee the periodic (monthly and/or annual) adjustments to address exogenous changes in costs. • public education of rate payers; • undertake performance reviews and data collection. Among the private providers for which tariffs are expected to be reviewed during the next three years are: • Can-Cara – January 2016 • Dairy Spring – April 2015 • Runaway Bay Water Company – April 2015 • Dynamic Environmental Management Limited October 2016
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d E
nfo
rcem
ent
Service Efficiency
determinations On-going A tariff determination was done for RBWC, An ANPAM was done for DEML and monthly PAM approved for RBWC.
98
Major Projects/Activ
ities
Summary Description of Project /Activity
De
pt.
S.U.C.C.E.S.S. Criteria Impacted
Output/Performance Indicator
Stat
us
No
t St
arte
d/O
n-
goin
g/C
om
ple
ted
) Comments
NIC Tariff Review
The National Irrigation Commission (NIC) is the leading provider of irrigation water in Jamaica. The Commission also provides bulk water to some major operators in the sector. In theory the NIC is expected to supply service at an economic rate. A review of NIC’s application for a tariff review is now an annual exercise, and is expected to remain so until a price cap arrangement is implemented. Because of government policy of providing a subsidy to irrigation rates, the Office is required to determine both the economic rates and the subsidised rates for such services. Ultimately however, the rates charged to users reflect the extent of subsidy the government is prepared to provide. The availability of irrigation water is critical to the development of the agriculture sector and so the Office considers its regulatory activities in this area to be a critical input in national development. In addition to the expectation that it will be required to determine NIC rates generally, there are a number of specific irrigation projects for which rates have to be determined based on specific project costs. Thus the Office expects that it will again be called upon to review individual irrigation schemes, and to make recommendations on rates and basic quality of service standards for them.
Reg
ula
tio
n, P
olic
y M
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ito
rin
g an
d E
nfo
rcem
ent
Service Efficiency
determination Not-Started
No application has been received from received from the NIC.
99
Major Projects/Activ
ities
Summary Description of Project /Activity
De
pt.
S.U.C.C.E.S.S. Criteria Impacted
Output/Performance Indicator
Stat
us
No
t St
arte
d/O
n-
goin
g/C
om
ple
ted
) Comments
NWC’s Mid- Tariff Review
The OUR will conduct a Mid- Tariff Review for the NWC specifically on the Standards Scheme and the K-factor variable that was approved in the 2013 Tariff Determination Notice. This will provide a good opportunity to look at, inter alia: the progress of K-Factor approved projects, the impact of quality of service changes and the effect of NWC’s compliance with the various determinations set out in the 2013 Tariff Determination Notice.
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d
Enfo
rcem
ent
Service Efficiency
Determination Submission
expected by end of
fiscal 2015/16
WSS3 - Securing measurable improvements in service delivery with respect to the availability and reliability of potable water and sewerage services
Water and Sewerage Sector Bi-Annual Report
The OUR has taken a decision to publish bi-annual reports outlining activities in the water and sewerage sector. This is not only consistent with the Office’s obligation to ensure the timely provision of information to stakeholders but is also consistent with the Office’s view that increased information enhances transparency and facilitates empirically based decision making. This is also in accord with and should assist the Office’s emphasis on target setting, measurement; benchmarking and trend analysis. The aim is to have reports published within sixty days of the relevant six month period. Reports will be made available on the OUR’s website.
Reg
ula
tio
n, P
olic
y M
on
ito
rin
g an
d
Enfo
rcem
ent
Service Resumption of publication of
report
Not being published
Progress on this continues to be hampered by data efficacy concerns and absence of information on all providers.
100
Major Projects/Activ
ities
Summary Description of Project /Activity
De
pt.
S.U.C.C.E.S.S. Criteria Impacted
Output/Performance Indicator
Stat
us
No
t St
arte
d/O
n-
goin
g/C
om
ple
ted
) Comments
Audit of NWC Billing System
This is being proposed to ensure that NWC has the procedures and systems in place to accurately bill its customers. This will involve the Department’s preparation of the Terms of Reference; procurement and selection of vendor and implementation. C
on
sum
er a
nd
P
ub
lic A
ffai
rs Service Revised Billing
System On-going To be completed
by 2016/17
101
Internal Operations Table 3-4. Review of Internal support activities aligned to Corporate Commitments
Activity Name Summary Description Activity
Dep
artm
ent
Per
form
ance
in
dic
ato
rs/
Ou
tpu
t
Stat
us
No
t St
arte
d/O
n-
goin
g/C
om
ple
ted
)
Comments
Acc
ou
nta
bili
ty
Amendments to the OUR Act
Amendments are to effect recommendations aimed at, inter alia, correcting several deficiencies in the Act, aligning the enforcement and consumer protection provisions with those specified in the Telecommunications Act. The proposed amendments which facilitate the implementation of the OUR’s strategic plans will be pursued with the Government
Lega
l
Recommendations submitted to the Cabinet Office
On-going We will continue to
follow up with the Cabinet
Office regarding the
proposed amendments.
Performance Appraisal
Liaise with all members of the senior management team in ensuring that all their team members have a work plan and performance objectives which clearly set out the specific tasks/activities to be performed, the key performance indicators, and the expected results for future performance. Every effort must be made to ensure that all team members are fully knowledgeable of the strategic plan for their department and ultimately of the organization. In the implementation of the Balanced Scorecard system which was recently introduced to the organization, it is mission critical that measurable targets be established and effectively communicated to all team members as this is how the organization will achieve its strategic objectives A
dm
inis
trat
ion
an
d H
um
an R
eso
urc
es
Approved Performance Appraisal System
Ongoing Consultant being
recruited to look at
Evaluation system
102
Activity Name Summary Description Activity
Dep
artm
ent
Per
form
ance
in
dic
ato
rs/
Ou
tpu
t
Stat
us
No
t St
arte
d/O
n-
goin
g/C
om
ple
ted
)
Comments
Stew
ard
ship
Review and finalization of the OUR’s rules and practices
Finalization of OUR’s Rules of Practice and Procedure that is, how the OUR interfaces with its stakeholders.
Lega
l
OUR’s rules and practices
On-going Submission of Document to
the Office
OUR’s Operational Manual
The revision of internal policies to ensure an effective
quality management system.
Qu
alit
y
Man
agem
ent
Syst
ems
TBD TBD TBD
Merger of the functions of the OURIC and the Records and Information Management (RIM) Unit
The OUR’s Information Centre (OURIC), functions as a Unit of CPA, and inter alia, manages the documents and publications of the OUR. The RIM Unit is responsible for all organizational records, regardless of format, throughout the record lifecycle. The merger seeks to standardise and consolidate the records management function in support of policy formation, managerial decision making and protection of the interests of the OUR and its stakeholders. It will promote consistency, continuity, efficiency and productivity, assisting the OUR to efficiently deliver on its mandate. Strategically the RIM function also supports the organization’s effort to achieve ISO 9001:2008 certification within fiscal year 2014/2015.
Co
nsu
mer
an
d P
ub
lic A
ffai
rs
Not Applicable
Completed Office decision not to move
forward in this direction.
Operational Audits Audits conducted on the internal operations of the OUR
Inte
rnal
Au
dit
Audit Reports Completed -
103
Activity Name Summary Description Activity
Dep
artm
ent
Per
form
ance
in
dic
ato
rs/
Ou
tpu
t
Stat
us
No
t St
arte
d/O
n-
goin
g/C
om
ple
ted
)
Comments
Special Reviews Requested reviews conducted on activities which were not included in the original Internal Audit Schedule for the year
Inte
rnal
Au
dit
Audit Reports Completed -
QMS Process Internal Audit
Internal audits conducted on documented processes for the quality management system certifiable under the ISO 9001:2008 standard
Inte
rnal
Au
dit
Audit Reports Completed -
QMS Process External Audits
Audits conducted by external consultants and auditors on OUR’s quality management system under the ISO 9001:2008 standard
Inte
rnal
Au
dit
Audit Reports Completed -
104
Activity Name Summary Description Activity
Dep
artm
ent
Per
form
ance
in
dic
ato
rs/
Ou
tpu
t
Stat
us
No
t St
arte
d/O
n-
goin
g/C
om
ple
ted
)
Comments
Review of Guaranteed Standards Mechanisms
The OUR established guaranteed service standards scheme for JPS and NWC as an incentive to improve efficiency in their service delivery. The scheme has a mechanism to compensate consumers for breaches of the standards. In some instances, compensation is automatically credited to the affected customer account, while the customer is required to submit a claim for other breaches. The review of the Guaranteed Standards Schemes of all utilities will be an on-going exercise to ensure compliance with new directives, and in keeping with changed and changing consumer issues. The Guaranteed Standards for the National Water Commission (NWC) underwent a complete review in the financial year 2013/14 as a part of its tariff revision. A similar review is being done for the Guaranteed Standards of JPS as a part of its tariff revision to be completed in fiscal year 2014/2015. Following on the Auditor General’s critique of the effectiveness of the GS, an annual internal review of the mechanism and its effectiveness is being pursued.
Co
nsu
mer
an
d P
ub
lic A
ffai
rs
Revised Guaranteed Service standards scheme for JPS and NWC
On-going To be completed by March 2016
Documentation of all Business Processes and Procedures
The documenting and updating of the OUR Operations Manual with previously undocumented processes and procedures will continue.
Qu
alit
y M
anag
emen
t
Syst
ems
Update of the Operations Manual with the Monitoring, Communication and Licence Administration Processes
On-Going -
105
Activity Name Summary Description Activity
Dep
artm
ent
Per
form
ance
in
dic
ato
rs/
Ou
tpu
t
Stat
us
No
t St
arte
d/O
n-
goin
g/C
om
ple
ted
)
Comments
Quarterly Performance Report for the activities of Consumer Unit and all major service providers.
The OUR agrees with the findings of the Auditor General that the compensation mechanism is not assisting OUR in achieving its legislated mandate to undertake such measures as it considers necessary or desirable to protect the interests of consumers. OUR has intensified its survey of compliance with these standards and as a vital part of this exercise has ensured that the publication of Quarterly Performance Reports which sets out inter alia, details of all claimable breaches committed by the utility providers. This will serve to provide a monitoring tool and will assist with the determination of what additional regulatory interventions are required
Co
nsu
mer
an
d P
ub
lic A
ffai
rs
Quarterly Performance Reports
On-going -
Man
agem
ent
Institute a Bring Your Own Device (BYOD) policy
The establishment of policy with a proactive governance framework which should include sanctions for non-compliance that are aligned to the HR policy.
Info
rmat
ion
Tech
no
logy
BYOD Policy formulated
On-going 1st Draft completed
Regulatory Management System
The development of a Regulatory Management System to supply information on the performance and monitoring of the OUR licensed entities.
Info
rmat
ion
Tech
no
logy
System completed
Completed New Data collection
protocol to be agreed with
Licensees
106
Activity Name Summary Description Activity
Dep
artm
ent
Per
form
ance
in
dic
ato
rs/
Ou
tpu
t
Stat
us
No
t St
arte
d/O
n-
goin
g/C
om
ple
ted
)
Comments
Transformation of QMS Steering Committee into a Quality Council
The functions of the quality management system steering committee (QMSSC) will no longer be required after ISO certification. The QMSSC will be morphed into a Quality Council (QC) which will have responsibility for the ongoing activities of the quality management system
Qu
alit
y
Man
agem
ent
Syst
em
The creation of the Quality Council.
On-going The Quality Council will be created after
the certification is
received.
The Management of all Risks
The development of a risk management framework for each department and unit, and a comprehensive risk register and mitigation strategy for the organization.
Qu
alit
y
Man
agem
ent
Syst
em
The implementation of ERMS and the production of a Risk Register
On-going Training for all staff member is scheduled
for 2015 November
17th
Business Continuity The development of a comprehensive business continuity plan for the OUR.
Qu
alit
y
Man
agem
ent
Syst
em
The development of business continuity framework for the OUR
Not Started The Project will start on
2015 January 2nd
Inventory of Records Execute inventory of records at off-site storage facility.
A
dm
inis
trat
ion
an
d
Hu
man
Res
ou
rces
TBD TBD TBD
107
Activity Name Summary Description Activity
Dep
artm
ent
Per
form
ance
in
dic
ato
rs/
Ou
tpu
t
Stat
us
No
t St
arte
d/O
n-
goin
g/C
om
ple
ted
)
Comments C
itiz
en-f
ocu
sed
pro
gram
mes
Parish Connections It aims to facilitate active communications channel and
to re-establish continuing consumer and stakeholder
dialogue so that there can be a two way flow of
information to the OUR on their various concerns. It
will also allow utilities to share information on projects
and development of issues with consumers on a
planned and consistent basis.
Co
nsu
mer
an
d P
ub
lic A
ffai
rs # of activities
On-going Activities held in
Westmoreland, Hanover,
St. Elizabeth and
Manchester.
# of participants
Full Participation of service providers.
National Integrated Communications Plan
The recommendation of Market Research Services
Limited, which executed the national consumer
research, was that the immediate focus for the OUR
should be in its communication and education of all its
stakeholders not so much about its role and mandate
but about its initiatives and programs. This
communication program also ought to seek to position
the OUR as really independent and free of political
involvement as such a reputation will retard the
credibility of the organization. Co
nsu
mer
an
d P
ub
lic A
ffai
rs
Plan completed and presented to the Office in September 2015.
Completed Initiatives to be executed
in the remainder of
the current FY and will
continue in FY 2016/17
Sector and Stakeholder Engagement
The OUR’s regulatory work touches on several key
stakeholders and participants. There is a felt need to
co-ordinate communications across these several
organizations so that the OUR’s key messages and
output are delivered to them in a consistent manner. Co
nsu
mer
an
d
Pu
blic
Aff
airs
PSOJ, Gleaner Company.
On-going -
108
Activity Name Summary Description Activity
Dep
artm
ent
Per
form
ance
in
dic
ato
rs/
Ou
tpu
t
Stat
us
No
t St
arte
d/O
n-
goin
g/C
om
ple
ted
)
Comments
Review of Processes Conduct a work-flow analysis to examine the
departmental activities to:
Identify processes (for e.g. referral,
communications) that need to be mapped;
• Identify areas for improvement (structure, human
resources etc.) and whether additional resources
are needed;
• Investigate the need for penalties/sanctions for
Providers who fail to respond within the agreed
timeline;
• Improve the deliverables and the technical
capabilities of the Consumer Affairs Response
System
Co
nsu
mer
an
d P
ub
lic A
ffai
rs
Updated processes
On-going
-
Codes of Practice for Complaints Handling and Customer Service
for NWC and JPS
The purpose of this Code of Practice is to set out the
principles, requirements, services and actions a
customer can reasonably expect from the Jamaica
Public Service Company Limited (JPS) and the National
Water Commission (NWC). The documents are to be
guidelines to which customers can refer as a means of
identifying their rights and obligations, and to ensure
that conducting business with the company is
measureable, and they are able to gauge their
satisfaction. The rules being developed will govern
how complaints are handled and customers are
treated at the various customer service departments
of the utilities. C
on
sum
er a
nd
Pu
blic
Aff
airs
Establishment of New Codes of Practice for Complaints Handling and Customer Service for NWC and JPS
On-going To be completed by March 2016
109
Activity Name Summary Description Activity
Dep
artm
ent
Per
form
ance
in
dic
ato
rs/
Ou
tpu
t
Stat
us
No
t St
arte
d/O
n-
goin
g/C
om
ple
ted
)
Comments
Development and Implementation of
Standards for the JPS and NWC Call Centres
(Call Centre Monitoring)
This is to establish minimum service standards for all
the call centre operations of all utility providers in a
situation where the trend has been for operators to
out-source this service. The OUR has deemed it
necessary to review and develop these standards
because of the challenges that have been expressed by
utility consumers. The standards are intended to, inter
alia, ensure that calls are answered within the
prescribed time-lines and the duration of the call.
Industry wide consultations will take place on these
issues in the upcoming financial year.
Co
nsu
mer
an
d P
ub
lic A
ffai
rs
Standards for the JPS and NWC Call Centres (Call Centre Monitoring)
On-going To be completed by March 2016
Development and Implementation of Guidelines for the Conduct of Meter Inspections and Audits for NWC and Review of JPS’ Documentation
The OUR pursuant to its powers under the Act
considers it necessary to order implementation of a
meter testing programme in which the tolerance of
meter measurements will stay within acceptable levels
on a continuous basis. The new guidelines are being
proposed to prescribe the administrative and testing
procedures for revenue meters installed by the NWC
to measure consumption and to review the current JPS
Protocol on Administrative and testing procedures.
Co
nsu
mer
an
d P
ub
lic
Aff
airs
Guidelines for the Conduct of Meter Inspections and Audits for NWC and Review of JPS’ Documentation.
Not Started To be done in F/Y 2016/17
110
Activity Name Summary Description Activity
Dep
artm
ent
Per
form
ance
in
dic
ato
rs/
Ou
tpu
t
Stat
us
No
t St
arte
d/O
n-
goin
g/C
om
ple
ted
)
Comments
Implementation of National Consumer Survey
The market research study, which is both quantitative
and qualitative, is designed to evaluate the consumer’s
perceptions of the utility providers and the OUR as
well as utility provider’s perception of the regulator.
The main objective is to further explore the attitudes
and perceptions of the target audiences. The
information gathered from the research will be used to
benchmark consumer satisfaction levels as well as to
inform the development of a communications strategy
to strengthen the organization’s image and respond to
the public education and other needs of its
stakeholders.
Co
nsu
mer
an
d P
ub
lic A
ffai
rs
National Consumer Survey
On-going
To be
completed by March 2016
Public Education Programme
The OUR’s public education for the upcoming year will
include coverage of Number Portability and Area Code
Relief Planning. Following the publication of the
findings of the National Survey, a comprehensive
publication and communications programme, that will
involve a re-positioning of the OUR will be created for
the financial year 2015/16. A proactive and strategic
public education programme will be undertaken in full
to effect the desired behaviour change in the public
awareness and attitude towards the OUR. This will
enhance consumer awareness and organizational
reputation.
Co
nsu
mer
an
d P
ub
lic A
ffai
rs
P.E. Plan forms a part of the National Integrated Communications Programme
Completed -
111
Activity Name Summary Description Activity
Dep
artm
ent
Per
form
ance
in
dic
ato
rs/
Ou
tpu
t
Stat
us
No
t St
arte
d/O
n-
goin
g/C
om
ple
ted
)
Comments P
eo
ple
Succession planning This is a process of identifying and developing team
members with the potential to fill significant higher
level positions in the organization. Effective, proactive
succession planning reduces the risk of any breakdown
in operations during any absence of the incumbent.
Heads of Department/Supervisors have a critical role
to play in this process Ad
min
istr
atio
n a
nd
Hu
man
Re
sou
rces
All HODS have a ready successor
On-going HODs have been provided
with the requisite
procedures
Training and Development
The focus will be on more in-house training and
development programmes so that more team
members across departments can benefit; this will also
be more cost-effective. This will also include greater
use of online training. It is expected that these
initiatives will have a positive impact on job
performance, and ultimately on the organization. Ad
min
istr
atio
n a
nd
Hu
man
Re
sou
rces
Training Framework
On-going Training and Development
Committee established
Compensation & Staff Benefits
A compensation and employee benefits survey will be
commissioned during the first quarter of the Financial
Year 2015/2016, which, together with data from the
Jamaica Employers Federation, (JEF) Annual Salary
Survey will form the basis of a submission to the
Ministry of Finance for a review of the classification
scales. Most members of staff are either
approaching, or have been at the top of their salary
scale, some for more than two years. Other employee
benefits such as Health Insurance, Wellness
Programme, Clothing Allowance and Lunch Subsidy will
also be reviewed Ad
min
istr
atio
n a
nd
Hu
man
Re
sou
rces
Compensation and Staff Benefits Survey Report
On-going Compensation and Staff Benefits
Committee established
112
Activity Name Summary Description Activity
Dep
artm
ent
Per
form
ance
in
dic
ato
rs/
Ou
tpu
t
Stat
us
No
t St
arte
d/O
n-
goin
g/C
om
ple
ted
)
Comments
Cardiopulmonary Resuscitation (CPR) First Aid
With respect to employee health and wellness, at least
one team member from each department will be
trained in Cardiopulmonary Resuscitation (CPR) First
Aid, to assist in case there is an emergency at the
office.
Ad
min
istr
atio
n
and
Hu
man
R
eso
urc
es
At least one team member from each department trained in CPR
On-going Awaiting response from
St. John’s
Staff Satisfaction Survey
A Human Resources Survey will also be conducted to
provide information on how the Department can
better serve the staff.
Ad
min
istr
ati
on
an
d
Hu
man
R
eso
urc
es Staff survey
score On-going Consultant
being recruited
Envi
ron
me
nt
Implement Video Conference Equipment
The installation of video conference facilities in all the
conference rooms.
Info
rmat
ion
Tech
no
logy
Acquire and install video conferencing system
ongoing Systems being review
The Digitization of OUR Documents
The digitizing of all the documents of the organization, so as to achieve: - integration with the organization's procedures for disaster recovery and backups; - greater integration with business applications: integration is one of the fundamental pillars of document management, since many business applications produce documents, and also many applications that exploit them; - a reduction in the need for staff members to access the physical documents of the organization; - an improvement in the search and research ability of the documents and records of the organization; - the potential reduction in physical storage space.
Qu
alit
y M
anag
emen
t Sy
stem
113
Activity Name Summary Description Activity
Dep
artm
ent
Per
form
ance
in
dic
ato
rs/
Ou
tpu
t
Stat
us
No
t St
arte
d/O
n-
goin
g/C
om
ple
ted
)
Comments
Establishment of a hot site
I In
form
atio
n
Tech
no
logy
Hot site operational
ongoing -
Security Audit An independent security audit of the IT systems
security should be performed annual to locate any
weakness in the OUR systems.
Info
rmat
ion
Tech
no
logy
Audit Report Ongoing Done Bi-annually. Next
audit scheduled for next financial
year
Automation of office systems
The development of system of Stationary Requisition
System and Equipment Requisition System to
improve the management and record keeping of
stationary and equipment requested by departments.
Info
rmat
ion
Tech
no
logy
Commissioned system
ongoing Alternatives being
reviewed
114
4. OUR’s WORK PLAN (2016/17– 2019/20) AND DELIVERABLES
Assumptions and Bases
4.1. As is the practice, the work plan and budget as presented are predicated on a number of assumptions
regarding the operating environment and the internal structure of the OUR. The OUR’s success in
achieving the set objectives and goals and accomplishing the programme of work is dependent on the
extent to which these assumptions hold true. Additionally, it is normal to expect that there will be a
number of unforeseeable events and occurrences and it is not possible to make adequate contingency
provisions for these. That stated, the major assumptions regarding the work programme are:
• staff (existing and to be recruited) will be operating at optimal output throughout the period of the plan;
• exiting vacancies will be filled professional operating at the required levels;
• Staff turnover will be kept to a minimum. This is critical given the elongated learning curve that obtains
for regulatory professionals;
• that even in the absence of devolution, the OUR will be afforded the liberty to reclassify job functions
which will enable the OUR to retain its present staff complement or attract equivalent replacements
where there are losses;
• the resource needs identified in the budget will be approved and met;
• there will not be significant fall-out or delay in the payment of regulatory fees;
• policy, legislative and regulatory changes (legal, institutional and operational) already enacted or well
under way will not prove to be disruptive to the regulatory environment as to hamper the efficient
performance of tasks;
• the regulatory environment will not become more litigious than in the past year;
• where necessary the OUR will be able to outsource;
• such emergencies as arise will not be beyond the Office’s ability to meet and/or to outsource; and the
enforcement powers of the OUR will receive the necessary enhancement and support.
4.2. With regard to the construction of the budget for 2016/17; 2017/2018; 2018/2019 and 2019/20 the
following are the major assumptions:
• Inflation Rate:-The budget has been developed on the assumption that the Government’s projected
5.5% rate of inflation for FY 2016/17; 5.5% rate of inflation for FY 2017/2018; 5.0% rate of inflation for
FY 2018/19 and 5.0% rate of inflation for FY 2019/2020.
• Exchange Rate: - The budget has been developed at the current rate of US$1: J$125
• Staff Complement:-For the fiscal year 2016/17, the staff complement is budgeted at sixty-three (63). It
is expected that the vacant posts will be filled by April, 2016. Any other staff additions will be dependent
on whether there are additional responsibilities.
Contingencies
4.3. There are particular contingencies for which it is not possible to make provision at this time. There could
be changes in the OUR’s remit, for example, the OUR may be assigned oversight responsibility for the
petroleum sector, and that it may be required to assume responsibility for regulating an emerging
115
natural gas sector. The OUR considers that there is a critical need to have focused oversight of the
petroleum sector as the rates at which fuel is procured represents a direct pass-through to electricity
consumers which account for about 65% - 70% of the total charge for electricity.
4.4. The Government’s decision to promote fuel diversity which includes the adoption of natural gas in the
near to medium term, will give rise to the need for an appropriate regulatory framework. Given the
natural synergy that obtains, it is logical that the OUR would be required to assume regulatory
responsibility for this sector. However, in the absence of a decision on the allocation of this
responsibility, the OUR has no authority to pre-empt or to redeploy resources from other sectors in
anticipation of this, and the assumption is that in such an eventuality the required resources would
have to be mobilised externally to facilitate the establishment of this framework.
4.5. The Government has committed to a stand-alone ICT regulator which has the potential to severely
impact the viability of the OUR and will require major restructuring of personnel and finance. If this
commences in the next period as signalled, there will be a need to revisit the fundamentals of this Plan.
4.6. The OUR would no doubt be called upon to devote significant personnel time to this activity and so it is
among the matters that have implications for the work programme.
4.7. The new electricity act set down a number of task to be completed by he OUR which will need varying
levels of increases in resources.
TELECOMMUNICATIONS SECTOR Overview
4.8. The OUR is responsible to the Jamaican people for ensuring an orderly regulatory framework within
which telecommunications products and services can be efficiently and effectively provided to
consumers and businesses. The OUR must also ensure the universal availability of “basic”
telecommunications service; make telecommunications services accessible to all persons; protect and
empower consumers in the telecommunications marketplace and address public interest issues such as
cybersecurity and emergency access operations. Consistent with its statutory authority and in support of
its mission, the OUR has therefore established five strategic goals with related strategic objectives for
the telecommunications sector. The projects set out in this four (4) year work programme align with and
are expected to allow the OUR to achieve each of the strategic goals identified. It is also recognized that
the identified strategic goals and projects are not mutually exclusive as they tend to have overlapping
effects. Even so, the underlying rationale for project allocation has been to locate each within the
strategic goal to which it is adjudged to give greater weighting.
The National Strategic Approach
4.9. The national strategy for this sector is to expand the broadband network island-wide. Specifically, the
strategy is to create an appropriate regulatory environment conducive to investments in ICT and network
development, promote multiple modes of information delivery systems and networks, including new
wireless and wired broadband technologies, implement appropriate compliance measures, and improve
billing and collection procedures.
116
Table 4-1. Telecommunications Sector Work Plan
Activity Summary Description of Activity
Sect
or/
C
orp
ora
te G
oal
Ob
ject
ive S.U.C.C.E.S.S
Criteria/ Corporate
Commitment
Stra
tegy
Imp
act
Performance indicators/Output Base Target Start Date
End Date
4.3.3. Establish Broadband Dashboard
This project will establish a broadband deployment monitoring mechanism (Broadband Dashboard) using geographic information system. The outputs from this Project will provide baseline data on the broadband ecosystem; allow policymakers to develop universal access projects in a systematic and targeted manner; 4) Provide information on broadband to interested persons for the purposes of business, travel etc. This project will commence in the 2015/2016 fiscal year and run into the 2016/2017 fiscal year.
TS1 a, b, c
Coverage IP9 Completion of Dashboard by agreed date
Jan-16
Mar-17
4.3.4. Ensuring equivalence in access and choice for disabled end-users
The OUR is of the view that ensuring the provision of services for Jamaican consumers with disabilities is becoming increasingly important to ensure that all Jamaicans can benefit from new ICT services and fully participate in the fulfilment of Vision 2030. Improved access to telecommunications services will allow persons with disabilities to participate fully in community life and feel the effects of social cohesion. The Project will assess whether or not access and choice for end-users with disabilities is equivalent and identify and implement measures to address issues identified with respect to ensuring equivalent access and choice
TS1 c Service IP12 Completion of Determination Notice by the agreed date
Jan-16
Sep-16
TS1 c Service IP12 Completion of Determination Notice by the agreed date
117
Activity Summary Description of Activity
Sect
or/
C
orp
ora
te G
oal
Ob
ject
ive S.U.C.C.E.S.S
Criteria/ Corporate
Commitment
Stra
tegy
Imp
act
Performance indicators/Output Base Target Start Date
End Date
4.3.5. Conduct Sector Review
The OUR has commenced a complete assessment of the telecommunications sector to determine if there has been any change in the markets which were previously defined and whether additional markets now exist. The assessment will also indicate which operators, if any, are to be classified as dominant in those markets or whether existing dominant operators should be reclassified as non-dominant. Given the tasks associated with a sector review it is anticipated that this project will continue into the 2016/2017 fiscal year. The outcome of the sector review will inform the OUR’s future work programme as it will identify which markets require regulatory intervention. Projects such as: Review of Data Rios for Fixed and Mobile Networks; Establishment of Competitive Safeguards Rules; Cost and Benefit and Unfair Burden Test for Indirect access on Dominant Operators; and Cost and Benefit and Unfair Burden Test for Unbundling of Network Elements of Dominant Operators will all have to await the conclusion of the Sector Review.
TS2 a Efficiency IP9 Completion of Determination Notice by the agreed date
May-15
Sep-16
TS2 a Efficiency IP9 Completion of Determination Notice by the agreed date
TS2 b Efficiency IP9 Completion of Determination Notice by the agreed date
TS2 b Efficiency IP9 Completion of Determination Notice by the agreed date
4.3.6. Regulations to establish “fixed penalty” regime
Regulations are required to operationalize 63B of the Act. Under this section Where the Office believes that a person has committed an offence in relation to its area of regulation it may give that person notice in writing offering the opportunity of the discharge of liability to conviction of that offence by payment of the prescribed pecuniary
TS9 d Compliance IP12 Submission of drafting instructions to Chief Parliamentary Counsel by agreed date.
Nov-15
Nov-16
TS9 d Compliance IP12 Submission of drafting instructions to Chief Parliamentary Counsel by agreed date.
118
Activity Summary Description of Activity
Sect
or/
C
orp
ora
te G
oal
Ob
ject
ive S.U.C.C.E.S.S
Criteria/ Corporate
Commitment
Stra
tegy
Imp
act
Performance indicators/Output Base Target Start Date
End Date
penalty applicable. This project will commence in the 2015/2016 fiscal year and run into the 2016/2017 fiscal year.
4.3.7. Review of Unfair Terms in Telecommunication Contracts
According to Section 44(5) of the Telecommunications Act the Office may –“ a) examine customer contracts in respect of facilities or specified services; and b) direct the modification of any term of such a contract which appears to the Office to be unreasonable or unfair." The OUR has committed to seek to begin the process to establish unfair contract terms regulations during the 2015/2016 year. Such regulations will support competitive markets thus benefiting consumers and the economy as a whole. It is expected that this project will run into the 2016/2015 fiscal year.
TS3 e Service IP12 Submission of drafting instructions to Chief Parliamentary Counsel by agreed date.
Nov-15
Nov-16
TS3 e Service IP12 Submission of drafting instructions to Chief Parliamentary Counsel by agreed date.
4.3.8. Policy Paper for Enhanced Emergency Access Services
The OUR is of the view that the creation of a centralized emergency call centre may be a more efficient mode of handling emergency and that this should be explored. With such a set-up, all calls to national emergency numbers would be routed to the same call centre regardless from which network the call is placed. Another enhanced emergency service which needs to be explored is the ability to send a text message to reach emergency call centres from your mobile phone or device. In some emergency situations a call could further jeopardize someone’s life and safety and texting may be the only way to reach out for help. In addition, many Jamaicans with disabilities rely on text messaging as their primary means of communication. The
TS4 a Service IP12 Completion of Position Paper with recommendations by agreed date
Jan-16
Dec-16
119
Activity Summary Description of Activity
Sect
or/
C
orp
ora
te G
oal
Ob
ject
ive S.U.C.C.E.S.S
Criteria/ Corporate
Commitment
Stra
tegy
Imp
act
Performance indicators/Output Base Target Start Date
End Date
project should have as its outcome the production of a position paper setting out options and recommending a preferred solution. This project will commence in the 2015/2016 fiscal year and run into the 2016/2017 fiscal year.
4.3.9. Review of the telecoms universal service obligation
The OUR proposes to review the current universal service regime (USR) to determine its appropriateness given sector developments since it was first established in 2005. The review will evaluate the level of compliance and the effectiveness of the current model. Currently the provision of universal service is funded by a universal levy on incoming international call minutes. This regime however, is under threat. Technological developments over the last decade are resulting in changes to the tariff structure for voice services.
TS1 a Coverage S3 Completion of Determination Notice by the agreed date
TS1 c Service S1 Completion of Determination Notice by the agreed date
TS1 c Service S3 Completion of Determination Notice by the agreed date
TS4 a Service S1; S3
Completion of Determination Notice by the agreed date
4.3.10. Investigation and recommendation on whether there is a need for a Lifeline Broadband Product
Broadband has become essential to participation in modern society, offering access to jobs, education, health care, and government services.
TS1 a Coverage S3, IP10, S3
Completion of Determination Notice by the agreed date
120
Activity Summary Description of Activity
Sect
or/
C
orp
ora
te G
oal
Ob
ject
ive S.U.C.C.E.S.S
Criteria/ Corporate
Commitment
Stra
tegy
Imp
act
Performance indicators/Output Base Target Start Date
End Date
Unfortunately, income remains a significant barrier to broadband adoption. This Project will seek to determine whether there should be a broadband product that is designed for lower-income people who may not otherwise have access to the Internet.
TS2 a Service S1, IP10, S3
Completion of Determination Notice by the agreed date
4.3.11. Review of Data Rios for Fixed and Mobile Networks
Currently, in the voice segment of the sector, there is an obligation on all mobile carriers and LIME fixed network to submit their RIOs for the OUR’s approval. The 2012 amendments to the Telecommunications Act make interconnection obligation applicable to data networks. Subsequent to the conclusion of the sector review, the OUR will direct all dominant operators to submit RIOs, which include data services, for its approval. The review will outline the conditions under which dominant networks will interconnect for the provision of data services. This will make it easier for operators to establish interconnection agreements with dominant operators for the exchange of data traffic. As pricing is generally a key component of any RIO, it will lead to cost oriented rates and a level playing field for all operators which should foster greater competition in the provision of data services
TS2 b Efficiency S5 Completion of Determination Notice by the agreed date
TS7 a Service IP9 Completion of Determination Notice by the agreed date
TS9 b Compliance IP12 Completion of Determination Notice by the agreed date
4.3.12. Establishment of Competitive Safeguard Rules
Upon the conclusion of the sector review project, the OUR in accordance with Section 35 of the Act will seek to introduce competition safeguards, where necessary, to prevent the abuse of dominance by a public telecommunications carrier in its provision of access services/facilities. Among other things the safeguards will seek to address
TS2 b Efficiency IP12 Submission of drafting instructions to Chief Parliamentary Counsel (CPC) by agreed date.
121
Activity Summary Description of Activity
Sect
or/
C
orp
ora
te G
oal
Ob
ject
ive S.U.C.C.E.S.S
Criteria/ Corporate
Commitment
Stra
tegy
Imp
act
Performance indicators/Output Base Target Start Date
End Date
equivalence and transparency obligations, particularly the obligation to protect wholesale customer information
4.3.13. Conduct Cost and Benefit and Unfair Burden Test for Indirect access on Dominant Operators
Section 36 of the Telecommunications Act empowers the OUR to make rules imposing indirect access obligations on dominant carriers. Indirect access allows entrants an indirect method of accessing customers, and allows consumers the opportunity to benefit from the services offered by these entrants. before it can make rules to impose an obligation to provide indirect access or to unbundle its local loop on a dominant operator, the Office must be satisfied on reasonable grounds that such rules are necessary in the interests of customers and that – a) the benefits likely to arise from the requirement outweigh the likely cost of implementing it; and b) the requirement to provide the particular form of indirect access will not impose an unfair burden on any carrier or service provider. If the cost benefit analyses are positive, and there is no unfair burden, dominant operators will be mandated to provide indirect access services and implement unbundling in their networks.
TS2 b Efficiency IP12 Completion of Determination Notice by the agreed date
TS2 b Efficiency S5, S3
Completion of Determination Notice by the agreed date
122
Activity Summary Description of Activity
Sect
or/
C
orp
ora
te G
oal
Ob
ject
ive S.U.C.C.E.S.S
Criteria/ Corporate
Commitment
Stra
tegy
Imp
act
Performance indicators/Output Base Target Start Date
End Date
4.3.14. Conduct Cost and Benefit and Unfair Burden Test for Unbundling of Network Elements on Dominant Operators
Before it can make rules to impose an obligation to unbundle its local loop on a dominant operator, the Office must be satisfied on reasonable grounds that such rules are necessary in the interests of customers and that – a) the benefits likely to arise from the requirement outweigh the likely cost of implementing it; and b) the requirement to provide the particular form of indirect access will not impose an unfair burden on any carrier or service provider. If the cost benefit analysis is positive, and there is no unfair burden, dominant operators will be mandated to implement unbundling in their networks.
TS2 b Efficiency S5, S3
Completion of Determination Notice by the agreed date
TS2 b Efficiency S5, S3
Completion of Determination Notice by the agreed date
4.3.15. Establish QoS Rules for Wholesale Telecommunications
Consistent with its mandate under the Telecommunications Act, the OUR intends to establish quality of service standards for wholesale telecommunications services/facilities through the development of rules. The rules will apply to Licensees who make their services/facilities available as a wholesale product. Similar to the exercise conducted for the retail services, the rules will create conditions for consumer satisfaction by making known the quality of service/facilities, which a Licensee is required to provide, and the wholesale user has a right to expect.
TS2 b Efficiency IP12 Submission of drafting instructions to Chief Parliamentary Counsel (CPC) by agreed date.
4.3.16. Develop Regulatory Framework for Mobile Virtual Operators
This is the formulation of a system to outline how Mobile Virtual Network Operators (MVNOs) will be regulated. This will address the rights and responsibilities of these virtual operators and their
TS2 b Efficiency S5 Completion of Determination Notice by the agreed date
123
Activity Summary Description of Activity
Sect
or/
C
orp
ora
te G
oal
Ob
ject
ive S.U.C.C.E.S.S
Criteria/ Corporate
Commitment
Stra
tegy
Imp
act
Performance indicators/Output Base Target Start Date
End Date
interactions with facilities based operators. The OUR will examine a variety of issues including: - MVNO models, benefits, and the licensing, technical and regulatory implications of MVNO entry.
4.3.17. Develop Regulatory Framework for Next Generation Networks
This project will establish clear and transparent NGN regulations which are aimed at promoting broadband and advanced services for users and ensuring customer security and protection. The establishment of an NGN regulatory framework will help to lower the overall financial costs of operators deploying and using NGN networks. It will also engender legal certainty for investment in Next Generation Networks. The framework will encourage efficient investment and use of investment in NGNs and associated services as well the maintenance of legacy networks. The reform of access rules will reaffirm the importance of competition in the sector and at the same time preserve the incentives to invest by taking into account the risks involved in allowing access to NGN networks.
TS2 b Efficiency S5, S7
Completion of Determination Notice by the agreed date
TS2 b Efficiency S5, S7
Completion of Determination Notice by the agreed date
4.3.18. Establish platforms which provide more information to consumers e.g. price comparison website, broadband speeds
Regulators have a role to play in enabling consumers to make effective choices. During the 2016/2020 period the OUR intends to develop and/or facilitate the development of tools which
TS3 c Service S1, S5
Completion of Comparison Tool(s) by agreed date
124
Activity Summary Description of Activity
Sect
or/
C
orp
ora
te G
oal
Ob
ject
ive S.U.C.C.E.S.S
Criteria/ Corporate
Commitment
Stra
tegy
Imp
act
Performance indicators/Output Base Target Start Date
End Date
ensure the wide availability of effective price comparison information. Such tools could include calculators which allow consumers to enter preferences and usage pattern data to enable them to make price comparisons in complex markets.
TS3 c Service S1, S5
Completion of Comparison Tool(s) by agreed date
4.3.19. Review of the Mobile Long Run Incremental Cost (LRIC) Model
Interconnection charges that are based on LRIC encourage operational efficiency and assist the OUR in providing a level playing field for current operators and new entrants. LRIC-based charges also encourage rational pricing decisions on the part of the operators. The Mobile LRIC Model which was established in 2013 is due for review in 2018.
TS2 b Efficiency S5, IP10
Completion of Determination Notice by the agreed date
Jan-18
Sep-18
TS7 a Service S1, IP10
Completion of Determination Notice by the agreed date
4.3.20. Audit of Mobile Signals
The mobile signal audit will allow the OUR to discover which areas of the country may be experiencing such problems thus giving it a holistic view of the exact availability of mobile coverage and mobile services in Jamaica. By identifying areas in Jamaica that currently have and those that currently lack mobile coverage the results of the audit can also assist the OUR and Government in decision-making with respect to the provision of telecommunications services to those areas that are currently unserved or underserved.
TS3 b Service S1 Completion of Audit by agreed date
125
Activity Summary Description of Activity
Sect
or/
C
orp
ora
te G
oal
Ob
ject
ive S.U.C.C.E.S.S
Criteria/ Corporate
Commitment
Stra
tegy
Imp
act
Performance indicators/Output Base Target Start Date
End Date
4.3.21. National Cyber Security Strategy (NCSS) Implementation Activities
Under the NCSS the OUR is tasked with the following activities: Conduct a vulnerability assessment of National Critical infrastructure (NCI)against ISO standards; Determine and agree on measures that are required to be in place to ensure continuity of operations of NCI; Monitor implementation of agreed measures; Identify international best practices for NCI including standards and guidelines to inform national vulnerability assessments; Develop and implement sensitization measures for NCI operators /owners as to the best practices; Initiate dialogue with owners/operators of NCI on possible regulation options; Develop plan to establish communications protocols to report major incidents; Enlist participation of owner/operators of NCI to report major incidents.
TS5 b Safety & security
S6, S1
Vulnerability assessment report; Agreed measures; Quarterly progress reports; Document outlining best practices including standards and guidelines; Document outlining types of sensitization measures; Number of meetings held.
TS5 b Safety & security
S6, S1
Vulnerability assessment report; Agreed measures; Quarterly progress reports; Document outlining best practices including standards and guidelines; Document outlining types of sensitization measures; Number of meetings held.
TS5 c Safety & security
S6, S1
Vulnerability assessment report; Agreed measures; Quarterly progress reports; Document outlining best practices including standards and guidelines; Document outlining types of sensitization measures; Number of meetings held.
126
Activity Summary Description of Activity
Sect
or/
C
orp
ora
te G
oal
Ob
ject
ive S.U.C.C.E.S.S
Criteria/ Corporate
Commitment
Stra
tegy
Imp
act
Performance indicators/Output Base Target Start Date
End Date
4.3.22. Investigation and recommendation on extraterritorial use of Jamaican E.164 telephone numbers for nomadic telecoms services.
This project is an industry consultation on extraterritorial use of Jamaican E.164 telephone numbers for nomadic telecommunication services requiring the use of numbers.
TS6 a Efficiency S5, S7
Submission of industry report and recommendations by target date
4.3.23. Investigation and recommendation on charging for numbering resources.
This project will investigate industry practices in relation to charging for numbering resources to advise on a framework of charging for primary and secondary assignments of numbers for public telecommunication services. The investigation will consider separate charging for regular and special numbers, auctioning of special numbers, leasing of numbers, etc. This is in anticipation of the legislation of current policy provisions that are intended to allow the OUR to charge for numbering resources.
TS6 a Efficiency S5 Submission of industry report and recommendations by target date
127
ELECTRICITY SECTOR
Overview
4.10. The electricity sector remains critical to national development and touches the life of all citizens. The
OUR role in the sector runs the gamut from providing policy advice to the government, through
facilitating the development of the sector to ensuring the sustainability and efficient provision of quality
service to all consumers. The sector is going through exciting times as reflected in a number of major
initiatives that are underway and in which the OUR has played pivotal roles. These include:
a. The implementation of significant investment in renewable (78MW) secured through OUR’s
management of public tenders;
b. The successes of net billing pilot project, a review of which has bene completed and
recommendation passed to the ministry;
c. the thrust to diversify fuel supplies and in particular the move to introduce natural gas which is
being heralded by the Bogue project for which the Office made provision in the JPS tariff
determination;
d. the enactment of a new Electricity Act.
4.11. Notably the OUR has also been given notice of impending changes to the Amended and Restated All-
Island Electric Licence 2011. All of these are developments that will substantially affect the regulation of
the sector over the ensuing period.
The National Strategic Approach
4.12. The national imperatives for this sector include: to diversify the energy supply mix; to promote energy
efficiency and conservation; to implement least economic cost solutions for the supply of electricity; and
to improve service delivery to consumers. A number of initiatives are currently underway. These include
recent enactment of legislation, pending amendments to the Jamaica Public Service Company Limited
Amended and Restated All-Island Electric Licence and a raft of procurement initiatives at various stages
of completion. The projects and activities set out below reflect the goals, objectives and priorities set out
above.
128
129
Table 4-2. Electricity Sector Work Plan
Activity Summary Description of Activity
Sect
or/
C
orp
ora
te G
oal
Ob
ject
ive S.U.C.C.E.S.S
Criteria/Corporate
Commitment
Stra
tegy
Imp
act
Performance indicators/Output
Base Target Start Date
End Date
Review of Generation Code
Section 47(1) of the 2014 Electricity Act requires the OUR to complete five codes within twelve years of the promulgation of the Act. Generation Codes which inter alia, govern the operations of generators in the electricity sector is one of such codes. Generation Codes are currently in place but will need to be reviewed in light of the new legislation.
ES1 a Uptime,
compliance
Code completed and promulgated
updated Generation Code
Aug-15 Aug-16
Complete and promulgate T&D Codes according to the Act
Section 47(1) of the 2014 Electricity Act requires the OUR to complete five codes within twelve years of the promulgation of the Act. T&D Codes which inter alia, govern transmission and distribution in the electricity sector is one of such codes. T&D Codes are currently in draft but will need to be revised and promulgated consistent with the new legislation.
ES1 a Uptime
S1, S2, S4, S5, S6, S7
Codes completed and promulgated
N/A
promulgation T & D Codes
Aug-15 Aug-16
Develop and Promulgate Supply and Dispatch Codes according to the Act
130
Activity Summary Description of Activity
Sect
or/
C
orp
ora
te G
oal
Ob
ject
ive S.U.C.C.E.S.S
Criteria/Corporate
Commitment
Stra
tegy
Imp
act
Performance indicators/Output
Base Target Start Date
End Date
Section 47(1) of the 2014 Electricity Act require that the OUR to complete five codes within twelve years of the promulgation of the Act. Supply and Despatch Codes are specified among such codes. These codes do not formally currently exist and as such will need to be developed from first principles.
ES1 a Uptime
S1, S2, S4, S5, S6, S7
Codes completed and promulgated
N/A
Supply and
Dispatch
Codes
Aug-15 Aug-16
Review EEIF
The OUR in previous determinations has established an Electricity Efficiency Improvement Fund (EEIF) to drive inter alia, modernisation of the grid and reduce loss adjustments. The performance of the Fund and review of the governing rules are the object of this project.
ES2 b EFFICIENCY IP6, System losses (%) 25.87 19.5 2016 2020
Review of the Performance-Based Rate-Making Mechanism (PRBM)
131
Activity Summary Description of Activity
Sect
or/
C
orp
ora
te G
oal
Ob
ject
ive S.U.C.C.E.S.S
Criteria/Corporate
Commitment
Stra
tegy
Imp
act
Performance indicators/Output
Base Target Start Date
End Date
The importance of competition as a means to enhance efficiency and consumer welfare is gaining momentum in almost all sectors and in all parts of the world. In the electricity sector different restructuring models have been employed by various countries to guarantee efficiency and consumer welfare. Notwithstanding the introduction of competition in the generation market modelled on the basis of the All-Island Electric Licence, 2001, Jamaica is yet to show significant benefits from progressive reforms in liberalizing the sector. In view of this it is imperative to review the existing PRBM to assess the impact on rates and its effectiveness for incentivising JPS to improve efficiency.
ES3 b EFFICIENCY IP6 ,IP9
Recommendation/s
existing
mechanism
Change/no
change 2017 2018
JPS Price Cap Annual Adjustment JPS Amended and Restated All-Island Electric Licence, 2011 requires JPS to file annual reviews with the OUR for amendment of its rates to take account of inflation and productivity changes. Over the course of this work plan, the OUR will be required to perform a number of annual reviews.
ES3 e EFFICIENCY
IP 6,9,10.11
Average Real Price of electricity
…US¢/kWh
…US¢/kWh
May 1, 2016/2
020
June 1, 2016/2
020
Q-factor assessment for establishment of baseline
The existing price cap regime includes a Q-Factor variable which can be used to offset changes in service quality. So far the OUR has kept the value for this variable at zero largely because of data deficiency to properly determine Q. The OUR is committed to reassessing the methodology, Data requirements and the existing mechanism to determine a Q-factor baseline determination.
ES6 c UPTIME
IP 6,9,10, 11, ES6
, ES4
SAIDI, CAIDI, MAIFI TBD TBD ongoing Jun-19
132
Activity Summary Description of Activity
Sect
or/
C
orp
ora
te G
oal
Ob
ject
ive S.U.C.C.E.S.S
Criteria/Corporate
Commitment
Stra
tegy
Imp
act
Performance indicators/Output
Base Target Start Date
End Date
2019 - 2024 JPS Tariff Review
JPS is required to submit a proposal for tariff review every five years in accordance with the 2011 Restarted All-Island Electric Licence, The next submission for review, analysis and for a determination by the Office is due in 2019.
ES3 c SUSTAINABILITY IP9 2019 -2024 JPS Tariff Review
Determination TBD TBD
Accounts Separation Guidelines
Accounting separation” involves the de-construction of a company's accounts in order that the costs and revenues associated with each production and/or service unit can be identified, functionalized and appropriately allocated. These Guidelines are in keeping with the provisions of the Amended and Restated All-Island Electric Licence, 2011(the “Licence”) under which the Jamaica Public Service Company (JPS) operates. Condition 5 of the Licence states that JPS ‘shall maintain such Regulatory Accounts as may reasonably be specified by the Office consistent with generally accepted accounting principles.” This activity has been in train for a prolonged period but have had to give way to other scheduled and unscheduled activities. The exercise will be completed during the course of this work plan.
ES3 a EFFICIENCY
IP 6,9,10, 11, ES3
, ES2
, ES7
Presentation and publication of transparent regulatory
accounts on real non-fuel costs
($/kWh)
Non regulatory
accounts
reporting
Regulatory
accounts
reporting
Oct-15 1st Q 2016
Review of Wheeling Tariff Regime
The need for wheeling rates has arisen out of amendments to the All-Island Electric Licence, 2001 which occurred in August 2011. The change which is codified in the Amended and Restated All-Island Electric Licence, 2011 allows for the wheeling of
ES1 b COMPLIANCE
IP 6,9,10, 11, ES1
Tariff Rates …US¢/kWh
…US¢/kWh
Aug-16 Aug-20
133
Activity Summary Description of Activity
Sect
or/
C
orp
ora
te G
oal
Ob
ject
ive S.U.C.C.E.S.S
Criteria/Corporate
Commitment
Stra
tegy
Imp
act
Performance indicators/Output
Base Target Start Date
End Date
electricity across the national grid “on a basis that is cost reflective and consistent with the Price Controls as approved by the Office.” Wheeling of electricity, however, is limited to the purpose of self-generation. Electricity wheeling refers to the transportation of electricity across the power grid by an entity producing its own power, to another geographic location where it is consumed. For such a service the entity would be required to pay a fee for the use of the transmission and distribution lines. The OUR issued its wheeling Determination on July 9, 2013, but it was successfully challenged by JPS. Consequently, the OUR will be required to: a) Review the wheeling methodology; b) Recomputed wheeling rates based on an updated “Cost of Service Study”; c) Issue a new Determination; d) Agree on a new timetable for the roll-out of the Wheeling Framework; e) Finalize the supplementary Wheeling Contracts; f) Oversee the implementation of the Wheeling Framework.
, ES7
Establishment of the Rules for the Bogue Plant Reconfiguration Fund
It has been established that converting the facility at Bogue to a lower cost fuel will afford a reduction in cost in the order of 3-5%, with a very short payback period. The OUR therefore regards this as a priority short term goal and has taken regulatory decisions to drive this, i.e. the Bogue Plant Reconfiguration Fund (BPRF) which was established in 2015 pursuant to the tariff structure approved by the Office of Utilities Regulation (the OUR/Office) Determination Notice titled “Jamaica Public Service Company Limited Tariff
ES5 b EFFICIENCY
IP 6,9,10, 11, ES2
, ES3
Reduce Average real cost of Generation
…US¢/kWh
…US¢/kWh
Jun-15 Apr-16
134
Activity Summary Description of Activity
Sect
or/
C
orp
ora
te G
oal
Ob
ject
ive S.U.C.C.E.S.S
Criteria/Corporate
Commitment
Stra
tegy
Imp
act
Performance indicators/Output
Base Target Start Date
End Date
Review for Period 2014-2019” dated January 7, 2015. Notably, this project is also expected to secure significant improvements in system stability and reduce complaints about failure to despatch within merit order. The project is already underway. Monitoring of this activity and the savings that result from this conversion will carry over into the early months of the planning period.
Review all Integrated Resource Plan develop by JPS, MSTEM
The OUR considers the development of an Integrated Resource Plan (IRP) which includes a Least Cost Expansion Plan to be critical. In this regard, the OUR has commenced work on the development of such a plan but is also aware that other entities have been mandated to carry out this activity. In this regard the OUR is committed to providing inputs into this process. It is therefore proposed to develop models and analysis tools to assess the impact of any IRP on the electricity rates and system reliability.
ES5 c SUSTAINABILITY
IP 6,9,10, 11
Impact of IRP on electricity prices
TBD TBD Nov-15 Apr-20
Economic Procurement of Fuel and Scrutiny of Fuel Inventory and Use
Efficient fuel procurement is vital to securing greater efficiency and lowering rates. In order to ensure that JPS adhere to the Licence condition of economic procurement of goods and services, the OUR will develop an appropriate reporting mechanism and data requirement in consultation with JPS as it relates to procurement of fuel, fuel inventory and use. This is to be done within the planning period.
ES5 d EFFICIENCY IP6 Minimise Fuel Rate TBD TBD Apr-17 Apr-18
Review of the Electricity Market Structure Arrangement
135
Activity Summary Description of Activity
Sect
or/
C
orp
ora
te G
oal
Ob
ject
ive S.U.C.C.E.S.S
Criteria/Corporate
Commitment
Stra
tegy
Imp
act
Performance indicators/Output
Base Target Start Date
End Date
The OUR considers that good regulation requires periodic extensive market reviews to determine inter alia, the efficacy and relevance of extant market structure and mechanism including the policy, regulatory framework and the governing instruments. It is therefore proposed to undertake such a review during the work plan period.
ES3 b SUSTAINABILITY IP6 IP9
identify any regulatory and
institutional changes required
TBD TBD Apr-18 Apr-19
136
WATER, SEWERAGE AND IRRIGATION SECTOR Overview
4.13. Activities in this sector cut across a range of services: the provision of potable water, waste water and
sewerage treatment and supply of irrigation water to the agricultural sector. The absence of a
comprehensive policy framework enshrined in a specific sector umbrella legislation continues to be a
major short coming in terms of regulation of the sector. Even so, opportunities abound within this sector
for investment, efficiencies and improving the costs and delivery of service to customers. Among the
more attractive initiatives that the OUR is a part of are:
a. The ongoing effort to reduce losses, improve energy efficiency, expand access and mitigate
adverse environmental impact via the implementation of the K
Factor;
b. the prospects for implementing Private Public Partnership arrangements to expand water and
sewerage projects to unserved areas;
c. the growing participation of private sector investment in the sector via the licensing of small
private operated facilities;
d. the possibilities for achieving greater energy efficiency by fostering strategic partnership with the
electricity sector.
The National Strategic Approach
4.14. For the water sector, the overall focus remains that of ensuring that Jamaica’s water resources are
sustainable so as to provide for the nation’s social economic and environmental well-being. Ultimately,
the aim is to provide affordable access to potable water and to sewerage services for all of the populace.
Critical elements in getting to this objective are significant loss reduction, improved efficiencies, securing
timey capital investment, measurable service expansion (reach and constancy of supplies) and fostering
a culture of ongoing customer service improvement.
4.15. The projects and activities outlined below indicate the OUR’s commitment to securing the goals
objectives and objectives and priorities discussed above.
137
Table 4-3. Water Sector Work Plan
Activity Summary Description of Activity
Sect
or/
C
orp
ora
te G
oal
Ob
ject
ive S.U.C.C.E.S.S
Criteria/Corporate
Commitment
Stra
tegy
Imp
act
Performance indicators/Output
Base Target Start Date
End Date
Review of Generation Code
Section 47(1) of the 2014 Electricity Act requires the OUR to complete five codes within twelve years of the promulgation of the Act. Generation Codes which inter alia, govern the operations of generators in the electricity sector is one of such codes. Generation Codes are currently in place but will need to be reviewed in light of the new legislation.
ES1 a Uptime,
compliance
Code completed and promulgated
updated Generation Code
Aug-15 Aug-16
Complete and promulgate T&D Codes according to the Act
Section 47(1) of the 2014 Electricity Act requires the OUR to complete five codes within twelve years of the promulgation of the Act. T&D Codes which inter alia, govern transmission and distribution in the electricity sector is one of such codes. T&D Codes are currently in draft but will need to be revised and promulgated consistent with the new legislation.
ES1 a Uptime
S1, S2, S4, S5, S6, S7
Codes completed and promulgated
N/A
promulgation T & D Codes
Aug-15 Aug-16
Develop and Promulgate Supply and Dispatch Codes according to the Act
Section 47(1) of the 2014 Electricity Act require that the OUR to complete five codes within twelve years of the promulgation of the Act. Supply and Despatch Codes are specified among such codes. These codes do not formally currently exist and as such will need to be developed from first principles.
ES1 a Uptime
S1, S2, S4, S5, S6, S7
Codes completed and promulgated
N/A
Supply and
Dispatch
Codes
Aug-15 Aug-16
Review EEIF
138
Activity Summary Description of Activity
Sect
or/
C
orp
ora
te G
oal
Ob
ject
ive S.U.C.C.E.S.S
Criteria/Corporate
Commitment
Stra
tegy
Imp
act
Performance indicators/Output
Base Target Start Date
End Date
The OUR in previous determinations has established an Electricity Efficiency Improvement Fund (EEIF) to drive inter alia, modernisation of the grid and reduce loss adjustments. The performance of the Fund and review of the governing rules are the object of this project.
ES2 b EFFICIENCY IP6, System losses (%) 25.87 19.5 2016 2020
Review of the Performance-Based Rate-Making Mechanism (PRBM)
The importance of competition as a means to enhance efficiency and consumer welfare is gaining momentum in almost all sectors and in all parts of the world. In the electricity sector different restructuring models have been employed by various countries to guarantee efficiency and consumer welfare. Notwithstanding the introduction of competition in the generation market modelled on the basis of the All-Island Electric Licence, 2001, Jamaica is yet to show significant benefits from progressive reforms in liberalizing the sector. In view of this it is imperative to review the existing PRBM to assess the impact on rates and its effectiveness for incentivising JPS to improve efficiency.
ES3 b EFFICIENCY IP6 ,IP9
Recommendation/s
existing
mechanism
Change/no
change 2017 2018
JPS Price Cap Annual Adjustment JPS Amended and Restated All-Island Electric Licence, 2011 requires JPS to file annual reviews with the OUR for amendment of its rates to take account of inflation and productivity changes. Over the course of this work plan, the OUR will be required to perform a number of annual reviews.
ES3 e EFFICIENCY
IP 6,9,10.11
Average Real Price of electricity
…US¢/kWh
…US¢/kWh
May 1, 2016/2
020
June 1, 2016/2
020
Q-factor assessment for establishment of baseline
139
Activity Summary Description of Activity
Sect
or/
C
orp
ora
te G
oal
Ob
ject
ive S.U.C.C.E.S.S
Criteria/Corporate
Commitment
Stra
tegy
Imp
act
Performance indicators/Output
Base Target Start Date
End Date
The existing price cap regime includes a Q-Factor variable which can be used to offset changes in service quality. So far the OUR has kept the value for this variable at zero largely because of data deficiency to properly determine Q. The OUR is committed to reassessing the methodology, Data requirements and the existing mechanism to determine a Q-factor baseline determination.
ES6 c UPTIME
IP 6,9,10, 11, ES6
, ES4
SAIDI, CAIDI, MAIFI TBD TBD ongoing Jun-19
2019 - 2024 JPS Tariff Review
JPS is required to submit a proposal for tariff review every five years in accordance with the 2011 Restarted All-Island Electric Licence, The next submission for review, analysis and for a determination by the Office is due in 2019.
ES3 c SUSTAINABILITY IP9 2019 -2024 JPS Tariff Review
Determination TBD TBD
Accounts Separation Guidelines
Accounting separation” involves the de-construction of a company's accounts in order that the costs and revenues associated with each production and/or service unit can be identified, functionalized and appropriately allocated. These Guidelines are in keeping with the provisions of the Amended and Restated All-Island Electric Licence, 2011(the “Licence”) under which the Jamaica Public Service Company (JPS) operates. Condition 5 of the Licence states that JPS ‘shall maintain such Regulatory Accounts as may reasonably be specified by the Office consistent with generally accepted accounting
ES3 a EFFICIENCY
IP 6,9,10, 11, ES3
, ES2
, ES7
Presentation and publication of transparent regulatory
accounts on real non-fuel costs
($/kWh)
Non regulatory
accounts
reporting
Regulatory
accounts
reporting
Oct-15 1st Q 2016
140
Activity Summary Description of Activity
Sect
or/
C
orp
ora
te G
oal
Ob
ject
ive S.U.C.C.E.S.S
Criteria/Corporate
Commitment
Stra
tegy
Imp
act
Performance indicators/Output
Base Target Start Date
End Date
principles.” This activity has been in train for a prolonged period but have had to give way to other scheduled and unscheduled activities. The exercise will be completed during the course of this work plan.
Review of Wheeling Tariff Regime
The need for wheeling rates has arisen out of amendments to the All-Island Electric Licence, 2001 which occurred in August 2011. The change which is codified in the Amended and Restated All-Island Electric Licence, 2011 allows for the wheeling of electricity across the national grid “on a basis that is cost reflective and consistent with the Price Controls as approved by the Office.” Wheeling of electricity, however, is limited to the purpose of self-generation. Electricity wheeling refers to the transportation of electricity across the power grid by an entity producing its own power, to another geographic location where it is consumed. For such a service the entity would be required to pay a fee for the use of the transmission and distribution lines. The OUR issued its wheeling Determination on July 9, 2013, but it was successfully challenged by JPS. Consequently, the OUR will be required to: a) Review the wheeling methodology; b) Recomputed wheeling rates based on an updated “Cost of Service Study”; c) Issue a new Determination; d) Agree on a new timetable for the roll-out of the Wheeling Framework; e) Finalize the supplementary Wheeling Contracts; f) Oversee the implementation of the Wheeling Framework.
ES1 b COMPLIANCE
IP 6,9,10, 11, ES1
, ES7
Tariff Rates …US¢/kWh
…US¢/kWh
Aug-16 Aug-20
Establishment of the Rules for the Bogue Plant Reconfiguration Fund
141
Activity Summary Description of Activity
Sect
or/
C
orp
ora
te G
oal
Ob
ject
ive S.U.C.C.E.S.S
Criteria/Corporate
Commitment
Stra
tegy
Imp
act
Performance indicators/Output
Base Target Start Date
End Date
It has been established that converting the facility at Bogue to a lower cost fuel will afford a reduction in cost in the order of 3-5%, with a very short payback period. The OUR therefore regards this as a priority short term goal and has taken regulatory decisions to drive this, i.e. the Bogue Plant Reconfiguration Fund (BPRF) which was established in 2015 pursuant to the tariff structure approved by the Office of Utilities Regulation (the OUR/Office) Determination Notice titled “Jamaica Public Service Company Limited Tariff Review for Period 2014-2019” dated January 7, 2015. Notably, this project is also expected to secure significant improvements in system stability and reduce complaints about failure to despatch within merit order. The project is already underway. Monitoring of this activity and the savings that result from this conversion will carry over into the early months of the planning period.
ES5 b EFFICIENCY
IP 6,9,10, 11, ES2
, ES3
Reduce Average real cost of Generation
…US¢/kWh
…US¢/kWh
Jun-15 Apr-16
Review all Integrated Resource Plan develop by JPS, MSTEM
The OUR considers the development of an Integrated Resource Plan (IRP) which includes a Least Cost Expansion Plan to be critical. In this regard, the OUR has commenced work on the development of such a plan but is also aware that other entities have been mandated to carry out this activity. In this regard the OUR is committed to providing inputs into this process. It is therefore proposed to develop models and analysis tools to assess the impact of any IRP on the electricity rates and system reliability.
ES5 c SUSTAINABILITY
IP 6,9,10, 11
Impact of IRP on electricity prices
TBD TBD Nov-15 Apr-20
142
Activity Summary Description of Activity
Sect
or/
C
orp
ora
te G
oal
Ob
ject
ive S.U.C.C.E.S.S
Criteria/Corporate
Commitment
Stra
tegy
Imp
act
Performance indicators/Output
Base Target Start Date
End Date
Economic Procurement of Fuel and Scrutiny of Fuel Inventory and Use
Efficient fuel procurement is vital to securing greater efficiency and lowering rates. In order to ensure that JPS adhere to the Licence condition of economic procurement of goods and services, the OUR will develop an appropriate reporting mechanism and data requirement in consultation with JPS as it relates to procurement of fuel, fuel inventory and use. This is to be done within the planning period.
ES5 d EFFICIENCY IP6 Minimise Fuel Rate TBD TBD Apr-17 Apr-18
Review of the Electricity Market Structure Arrangement
The OUR considers that good regulation requires periodic extensive market reviews to determine inter alia, the efficacy and relevance of extant market structure and mechanism including the policy, regulatory framework and the governing instruments. It is therefore proposed to undertake such a review during the work plan period.
ES3 b SUSTAINABILITY IP6 IP9
identify any regulatory and
institutional changes required
TBD TBD Apr-18 Apr-19
143
MONITORING ACTVITIES ACROSS ALL SECTORS
Overview
4.16. A critical function of the OUR is its on-going monitoring of the activities of the regulated entities, and the
status of their operationalization of Office Decisions and compliance with its determinations. In this
regard the major goals for monitoring during the planning period are:
144
Table 4-4. Monitoring Work Plan
Activity Summary Description of Activity
Sect
or/
C
orp
ora
te
Go
al
Ob
ject
ive S.U.C.C.E.S.S
Criteria/Corporate Commitment
Stra
tegy
Im
pac
t Performance indicators/Output
Base Target Start Date End Date
Conduct K-Factor Audit
A comprehensive review of: a) the NWC’s management and operation of the K-Factor programme including b) the billing and accounting for funds, c) project selection and d) implementation, e) compliance with regulatory directives including the MOU, f) achievement of the stated objectives and g) the sustainability of the programme
WS2 a Efficiency Audit report, showing how the programme and projects performed.
19/10/2015 30/04/2016
WS3 c Sustainability IP3, IP9
Reduced NRW
WS4 c Sustainability
SS1 c Sustainability IP3, IP9
Improved sewerage coverage and flows into Soapberry plant
SS2 a Efficiency
SS3 c Compliance
SS4 a Sustainability
Conduct EEIF Audit
The evaluation will look at: a) both the management and operating performance of the EEIF by i) analysing the related business processes and practices, ii) relevant loss reduction programme plan and iii) all the projects implemented thereby.
ES2 b Uptime Audit report, showing how the programme and projects performed.
01/04/2016 30/05/2016
ES4 c Compliance IP3, IP4, IP5, IP9
Reduce system losses due to illegal extraction
ES5 e Sustainability
ES6 a Compliance
Verify compliance of utilities with Directives, Rules & Determinations
145
To check if the stipulated instructions are being carried out according to the respective instruments issued.
Compliance IP4, IP5
Utilities comply with the various requirements
01/04/2016 30/03/2020
Implement Monitoring Framework
Reflect monitoring Framework in organization. Implement: monitoring framework policy, responsibilities and relationships between departments. Determine: escalation protocols, enforcement policy & mechanisms, and inter-agency coordination and reporting. Optimize targets, standards and regulatory policy for synergistic operation. Consult with utilities on the monitoring policy initiatives.
Compliance IP3, IP9, S1, S2, S3, S4, S5, S6, S7
Monitoring framework implemented
01/04/2016 30/03/2020
Procure up to 37 MW (Net) of Electricity Generation from Renewable Resources
Procure up to 37 MW of electricity generation from renewable based resources by conducting an RFP process
ES2 c Sustainability IP8, S2, S6, S7
Increased percentage of electricity generation from renewable energy sources
01/03/2016 29/12/2019
Monitor K-Factor Programme
146
A comprehensive review of: a) the NWC’s management and operation of the K-Factor programme including b) the billing and accounting for funds, c) project selection and d) implementation, e) compliance with regulatory directives including the MOU, f) achievement of the stated objectives and g) the sustainability of the programme
WS2 a Efficiency C1, C2, S1, S4, S5, S7
Reduced NRW 19/10/2015 30/04/2016
Monitor EEIF
The evaluation will look at: a) both the management and operating performance of the EEIF by i) analysing the related business processes and practices, ii) relevant loss reduction programme plan and iii) all the projects implemented thereby.
ES2 b UPTIME IP3, IP4, IP5, IP9
Reduced system losses due to illegal extraction
01/04/2016
15/05/2016
ES4 c COMPLIANCE
ES5 e SUSTAINABILITY
ES6 a COMPLIANCE
Monitor Fuel Inventory Management by JPSCo
Fuel Inventory Audit showed areas of concern to be addressed.
ES3 c EFFICIENCY IP3, IP9
Minimized cost of fuel and reduced Fuel Component of bill to customers.
01/04/2016 30/03/2020
147
CONSUMER AND PUBLIC AFFAIRS Table 4-5. Consumer and Public Affairs Work Plan
Activity Summary Description of Activity
Sect
or/
C
orp
ora
te G
oal
Ob
ject
ive S.U.C.C.E.S.S
Criteria/Corporate
Commitment
Stra
tegy
Imp
act
Performance indicators/Output
Base Target Start Date End Date
Develop policy for concessions for vulnerable utility consumers (pensioners and persons within the disabled communities)
Collaboration with service providers to develop policy (via consultations and other methods). Justification for this project will be developed from customer complaints and consultations.
CS3 a.f.
Citizen-focused Programmes
IP12 # of service providers with vulnerable utility consumers concession policy in place
2016 June
March 2017
# of concession policy recommendations that influenced by customer feedback
Customer Perception survey score
. % adherence to stakeholder consultation schedule
Citizens Charter
Review and finalization of Service Level Agreement between OUR and utilities customer.
CS3 d. Citizen-focused Programmes
IP7 Updated SLAs April 2016
March 2017
Documented procedures for evidence gathering for meter tampering and illegal connections
148
Document to be developed in collaboration with NWC and small water providers. This would formalise the evidence that NWC is to provide in support of illegal connections. The impetus is supported by consumer complaints.
WS5 a. Compliance S4 “# of evidence gathering procedures documented
April 2016 On-going for monitoring.
March 2019
Girls in ICT Vulnerable young women and those with disabilities.
Developing a public education outreach programme consistent with the ITU. The Girls in ICT initiative of the International Telecommunication Union (ITU) is a global effort to raise awareness on empowering and encouraging girls and young women to consider studies and careers in Information and Communication Technologies (ICTs). The initiative is committed to celebrate and commemorate the International Girls in ICT Day on the fourth Thursday of every April as established by the ITU membership.
CS3 f. Citizen-focused Programmes
IP7 # of participants in outreach workshops
100% April 28, 2016 On-going
April 2019
% of outreach activities meeting their pre-determined objectives
OUR Service Excellence Awards
An annual event, OUR Service Excellence Awards will serve as the setting to recognize excellence in service delivery to consumers by service providers as well as to recognize and reward consumers/students. There will be several categories of awards and one criterion to receive the service award could include, the extent to which the utilities measure customer satisfaction. The findings of the national consumer survey will be fully utilized as a basis for judging this
CS3 a. f.
Citizen-focused Programmes
IP7 Service Provider Perception survey score
+5% April 2016
Dec. 2016
149
competition.
Annual Symposium on Utilities Customer Service and QOS Improvement.
The Annual Symposium on Utilities Customer Service and QOS Improvement is expected to help the organization benchmark customer service index and assist with the improvement in customer satisfaction via training and information sharing. The target audience is customer service personnel from all service providers. The expected output is the updating and standardization of codes of practice for complaints handling and customer service across the sectors.
CS3 b.,h.
Citizen-focused Programmes
S1,IP7 # of customer service personnel who participated
April 2016
December 2016
# of service providers who have standardized/updated codes of practice for complaints handling and customer service
Communications Council
Establishment of an OUR Communications Advisory Council to, inter alia: clarify public misconceptions about the determinations, programmes and policies of the organization; Improve the timeliness and content of response to all relevant issues; ensure that the organization is pro-active in its response to the media; and strengthen the organization’s external communications strategy and delivery of information to all stakeholders.
CS2 a. Stewardship IP4, IP7
% adherence to external communications schedule
April 2016
March 2019
% of public issues responded to in standard time
Development of NWC Water Trucking Policy
150
This policy will govern the trucking of water to NWC customers in areas affected by water lock-offs. (This policy will include agents contracted by NWC and s not private water truckers). This is being developed because of the frequency of consumer complaints.
WS5 a. Uptime IP11 # of customers affected by unplanned outages lasting over 3 hours
April 2017
March 2019
% of customers affected by outages over 2 days in emergency situations.
5%
OUR Mystery Shopping Programme
The CPA Department will be
embarking on this venture to garner
information on the quality of service
being offered to customers by the
utility providers and the small water
providers. Mystery shopping or secret
shopper, is a tool used to
measure quality of service,
or compliance with regulation, or to
gather specific information about
products and services. The mystery
consumer's specific identity and
purpose is generally not known by the
establishment being evaluated.
Mystery shoppers perform specific
tasks such as purchasing a product,
asking questions, registering
complaints or behaving in a certain
way, and then provide detailed
WS5
a b
Service Compliance
IP9 % completion of mystery shopper activities (Water)
April 2016 On-going
March 2019
Mystery shopper score
ES6 % completion of mystery shopper activities (Electricity)
Mystery shopper score (Electricity)
TS5 % completion of mystery shopper activities (Telecoms)
151
reports or feedback about their
experiences.
The purpose of this project is to
ensure that the utility providers are
adhering to the stipulations that are
outlined in their tariff agreements
and or the terms and conditions of
the license given to them upon their
contractual agreement with the OUR.
Mystery shopper score (Telcoms)
NPA (Area code Relief)
Developing a public education outreach programme and complaints handling to support the implementation of ten-digit dialling in Jamaica
TS3
c.d.
Service
IP7 % adherence to Public education outreach programme schedule
April 2016 On-going
March 2019
QOS Telecommunications
Developing a public education outreach programme and complaints handling.
TS3 c. Service Compliance
S1 Established Public Education Programme
April 2017 March 2018
# of providers with suitable complaints handling mechanism
Number Portability: Impact assessment
Continuation of complaints handling and assessing the impact of NP via consumer survey. The public education programme for number portability was spearheaded by the OUR. Unless stated by the Number Portability Working Group, the OUR
TS3 a bc
Service Compliance
# of breaches of Quality standards;
April 2016 March 2019
Customer Perception survey score;
152
still handles this matter and in the ensuing years, will continue the monitoring and evaluation of the programme.
Service Provider Perception survey score.
Social Media Campaign
The OUR already has a social media programme including Twitter, FaceBook, LinkedIn. This is to be increased with the focus being on the use of the key messages and PSAs already produced. SMS test messages will be introduced and these channels will be used to lead consumers to additional information on our websites and that of service providers as well as the 1-800- help line.
CS3 g. Citizen-Focused Programmes
IP7 Customer Perception survey score;
+5%
April 2016 March 2019
Integrated Communications Campaign
The communication plan aims to utilize a variety of approaches and channels to, among other things: 1. Change the negative perception of the OUR by improving public understanding of the organization’s roles and responsibilities; its core processes and its initiatives and programs. 2. Sharpen and more clearly define the OUR’s brand identity; 3. Promote OUR success stories via testimonials; 4. Provide appropriate benchmarks to measure the effectiveness of the organization relative to its mandate; and 5. Educate consumers about the service providers' responsibilities to them.
CS2 a. Stewardship IP7 Customer Perception survey score
+5% 2016 April
2017 March
Quarterly Press Briefings
153
Target Audience: Members of the media and selected stakeholder representatives. Objectives It aims to enhance stakeholders’ trust in and ability to engage with OUR, and thereby increase the impact of OUR’s operations. The briefings are expected to promote transparency, accountability, and participatory development. Its specific goals are to:
Improve the timeliness and
content of response to all
relevant issues
Ensure that the organization
is pro-active in its response to
the media;
Strengthen the organization’s
external communications
strategy and delivery of
information to all
stakeholders;
CS2 a. Stewardship IP7 Customer Perception survey score
+5% 2016 April
2017 March
Stakeholder Engagement
To re-establish continuing stakeholder dialogue so that there can be a two way flow of information to stakeholders and from the OUR on the various projects and development of issues. Creating this dialogue will build awareness about the local, regional and global sector issues as well as help us to gain a better understanding of our stakeholders’ perceptions and
CS2 CS3
e.h
Stewardship Citizen-focused Programmes
IP7 Customer Perception survey score
+5% 2016 April
2020 On-going
154
priorities. It is expected that we will use the channel to listen rather than tell in order to work towards delivering viable solutions. The new dialogue is also expected to positively impact the organization’s reputation: to change the perception that the organization is not transparent.
Parish Connections
This programme is expected to facilitate active communications channel and to re-establish continuing consumer and stakeholder dialogue so that there can be a two way flow of information to the OUR about their various concerns.
1. It will also allow the service providers to share information on projects and development of issues with consumers on a planned and consistent basis.
2. It is also intended to maintain contact with consumers, in between Rate Review consultations to keep the utilities true to the promises they make to consumers at that time.
Creating this dialogue will build awareness about the local sector issues as well as help us to gain a better understanding of consumers’ perceptions and priorities. It is expected that we will use the channel to listen and the utilities will use it tell and listen in order to work towards
CS2 CS3
e.,h
Stewardship Citizen-focused Programmes
% adherence to parish consultation schedule
April 2016 March 2019
155
delivering viable solutions for consumers.
Tariff Consultations with small and large service providers
The primary objectives of these meetings which are held across the island for service providers who have applied for a review of their tariffs, are: 1. To facilitate a platform from which the stakeholders could engage its customers with respect to: a) The content and reasons for its tariff applications to the OUR; and b) The company’s plans for the future with regard to service delivery. 2. To hear the views of consumers regarding the submission. 3. To obtain information from consumers with regard to general service delivery by in their respective areas; 4. To provide the public with an opportunity to advise the OUR of matters it considers relevant to the determination of the tariff application. 5. To obtain feedback specific to the established quality of service standards.
CS2 Stewardship C1 Service Provider Perception survey score (Water)
+5% April 2016 2019 On-going
Service Provider Perception survey score (Electricity)
Service Provider Perception survey score (Telecommunications)
OUR’s 20th anniversary
Marking of OUR’s 20th anniversary
CS3 f. Citizen-focused Programmes
IP7 Customer Perception survey score
+5% April 2016 December 2017
JPS Billing and Metering Audit
156
To carry out a review of JPS’ system(s) of accounting for the measurement and consumption of electricity by its account holders (customers). The programme will be required to examine the various components of the billing system with a view to determine the extent to which the existing systems and processes consistently provides reliable and accurate bills detailing customer consumption. The programme shall also assess the extent to which the JPS in compliance with regulatory directives, statutes and policies under which it operates.
ES6 c. Service Compliance Efficiency.
IP9 # of breaches of Quality of Service Standards;
0
April 2018
March 2019
% adherence to information requested for general monitoring in standard time;
100%
% adherence to OUR determinations
100%
% adherence to OUR directives.
100%
Monitoring billing punctuality (EOS8)
Monitoring billing punctuality using desk reviews.
ES6 c. Service quality and compliance.
IP12 % of customer bills that are delivered in standard time
April 2016 March 2017
OURIC Outreach
The aim of this project is to promote the Office of Utilities Regulation Information Centre (OURIC) and generally the Office of Utilities Regulation (OUR). This project will take the form of physical exhibitions on topics determined by the Responsible Office in the Information Centre. These mounted exhibitions will visit predetermined venues and spend a period not exceeding five days at each venue, with members of staff available on the first and last day to field questions.
CS3 f. Citizen-focused Programmes
IP7 # of exhibitions held
April 2016 March 2019
% of exhibitions held that met their predetermined objectives
157
The aim of this project is to promote the Office of Utilities Regulation Information Centre (OURIC) through the provision of relevant information on utility regulation and other topical matters. Project Description This project will take the form of presentations and or short film features on topics determined by the Responsible Office in the Information Centre.
Establishment of OURIC virtual space
Establishing a page through which users can access On-line Public Access Catalogue; submit information request to the librarian as well as Access To Information requests.
CS2 CS3
g. Stewardship Citizen-focused Programmes
IP7 % adherence to On-line Public Access Catalogue Implementation schedule
April 2018
March 2019
Establishment of Memoranda of Understanding (MoU) and/or Service Level Agreements (SLAs) with key external stakeholders as required.
Explore establishment of MOU with CAC and other external stakeholders
CS3 c. Citizen-focused Programmes
IP7 # of SLAs established April 2017 March 2019
# of MOUs established
% adherence to consultation schedule
Measure the percentage of planned outages with 48 hours’ notice (EOS 1)
Monitoring planned outages; using media content analysis and customer calls and random checks. This is requirement under the Overall Standards.
ES6 a. Compliance IP12 % adherence to OUR determinations
100% April 2016 March 2019
158
Measure effectiveness and responsiveness of call centres
Monitoring and measurement of overall Standards EOS, 10 &11 This activity will involve mystery shopping; audits, desk reviews (reports).
ES6 a. Compliance IP12 % of customer calls responded to by call centre
April 2016 March 2019
Quality assurance recording of calls to consumer affairs
Recording and monitoring calls to the consumer affairs officers to enhance quality of interaction. What has been experienced? Or what is the reason for the project.
CS2 CS3
a b f g
Stewardship Citizen-focused Programmes
IP12 % of calls recorded that meet established call quality
April 2016 March 2019
Website development and creation.
Development and creation of an updated, easily navigable and user friendly web-site.
CS3 g. Citizen-focused Programmes
C1,C2 Customer Perception survey score
+5% April 2016
March 2018
OUR National Social Outreach Programme
The organization does not currently have a national corporate social outreach programme that reaches out the vulnerable and under-served members of society. Further, poor communication was consistently sited as the area needing immediate attention by the OUR. Consumers are of the view that there needs to be greater engagement of the public and transparency by the OUR. Not only will this help consumers to learn more about the OUR and its involvement in consumer relevant areas, but will also help them to trust the OUR more as a regulatory body offering services to them and the utility service providers.
CS3 f. Citizen-focused Programmes
C1 Customer Perception survey score
+5% April 2016 March 2019
Consumer Protection initiative
159
Development of policies/standards; identifying emerging trends and impact assessment.
CS3 b. Citizen-focused Programmes
S1,S4,S5 # of new/updated standards/policies
April 2016 Specific timeline
March 2019
Customer Satisfaction Survey
The OUR will be conducting an annual consumer satisfaction survey. This is a three year project, during which time the Consultant shall conduct a survey and do research using appropriate methodologies, to collect data and information, inter alia: a) To ascertain the current awareness level of the operations of the OUR and the public’s understanding of the organisation’s role and function; To determine the level of knowledge of members of the public of the OUR’s services, ascertain major areas of satisfaction and dissatisfaction, and ascertain from the public the means by which the areas of dissatisfaction can be improved; c) To establish what consumers feel
the OUR should be doing that is not
currently being done; and
d) To determine customers’
awareness and understanding of the
OUR’s appeals process;
CS3 a. Citizen-focused
Programmes
C1,C2 Customer Perception
survey score
54.6% 57.33% On-going 2019
160
LEGAL Table 4-6. Legal Department Work Plan
Activity Summary Description of Activity
Sect
or/
C
orp
ora
te
Go
al
Ob
ject
ive
S.U.C.C.E.S.S Criteria/Corporate Commitment
Stra
tegy
Im
pac
t
Performance indicators/Output
Base Target
Start Date
End Date
Disputes Resolution Procedures
The development of general dispute resolution procedures for all sectors regulated by the OUR
CS3 e Service IP11 Procedures
completed and promulgated
TBD TBD TBD TBD
Rules of Practice and Procedure
The establishment of rules of practice and procedure which will govern the OUR's interaction with its stakeholders
CS3 b Service IP11 Rules completed and promulgated
TBD TBD TBD TBD
161
INTERNAL AUDIT Table 4-7. Internal Audit Work Plan
Activity Summary Description of Activity
Sect
or/
C
orp
ora
te
Go
al
Ob
ject
ive S.U.C.C.E.S.S
Criteria/Corporate Commitment St
rate
gy
Imp
act Performance
indicators/Output
Base Target Start Date End Date
4 Operational Audits
See Schedule
CS1 e Accountability IP3
Adherence to Audit schedule/Audit Reports
2016/2017
2016/2017
CS2 g Stewardship IP3 TTC2 TTC1
CS5 d People TTC2
CS6 b Environment TCC3
Process Audits
Quality Management System Audit to maintain Certification - As per Audit Plan
CS2 g Stewardship IP1 IP2 IP3 IP4 IP5
Adherence to Audit schedule/Audit Reports
2016 Sep 2016 Oct
Process Audits
Quality Management System Audit to maintain Certification - As per Audit Plan
CS2 g Stewardship IP1 IP2 IP3 IP4 IP5
Adherence to Audit schedule/Audit Reports
2017 Jan 2017 Feb
4 Operational Audits
See Schedule
CS1 b e
Accountability IP3 IP13
Adherence to Audit schedule/Audit Reports
2017/201
8 2017/2018
CS2 c g
Stewardship IP3, TTC1 TTC2
CS6 a Environment TTC3
WS5 b Compliance IP9
Process Audits
162
Quality Management System Audit to maintain Certification - As per Audit Plan
CS2 g Stewardship IP1 IP2 IP3 IP4 IP5
Adherence to Audit schedule/Audit Reports
2017 Sep 2017 Oct
Process Audits
Quality Management System Audit to maintain Certification - As per Audit Plan
CS2 g Stewardship IP1 IP2 IP3 IP4 IP5
Adherence to Audit schedule/Audit Reports
2018 Jan 2018 Feb
4 Operational Audits
See Schedule
CS2 g Stewardship IP3 TTC2
Adherence to Audit schedule/Audit Reports
2018/201
9 2018/2019
CS3 e Citizen-focused programmes
TTC1
CS5 e f People TTC1
CS6 a b
Environment TTC3
Process Audits
Quality Management System Audit to maintain Certification - As per Audit Plan
CS2 g Stewardship IP1 IP2 IP3 IP4 IP5
Adherence to Audit schedule/Audit Reports
2018 Sep 2018 Oct
Process Audits
Quality Management System Audit to maintain Certification - As per Audit Plan
CS2 g Stewardship IP1 IP2 IP3 IP4 IP5
Adherence to Audit schedule/Audit Reports
2019 Jan 2019 Feb
163
ADMINISTRATION/ HUMAN RESOURCE MANAGEMENT Table 4-8. Administration and Human Resource Department Work Plan
Activity Summary Description of
Activity
Sect
or/
C
orp
ora
te
Go
al
Ob
ject
ive
S.U.C.C.E.S.S Criteria/Cor
porate Commitmen
t
Stra
tegy
Imp
act Output/Perf
ormance indicators
Base Target Start Date
End Date
Establish and maintain Disaster Mitigation and Preparedness
Collaborate with the PCJ with respect to Implementing and Establishing a Disaster Preparedness and Management. Sensitizing staff to effectively respond to hazards e.g., Earthquake, Hurricane and Fire. Organize and conduct Disaster Management sensitization sessions for staff. This should cover the preparation by staff to protect themselves and the property of the OUR
CS4 c Managemen
t TTC2 TTC3
No. of meetings/ session attended
1 1
April 2016
Mar 2017
No. of sensitization sessions
0 1
% of staff attending sensitizations
100%
Exchange Programmes with other Regulatory Organizations
Organize and manage work exchange programmes with other Utilities Regulator
CS5 b People TTC1 TTC3
No. of staff participating in work exchange programme
April 2016
Mar 2017
Procurement of General Services
This activity will involve the management and coordination of the procurement of goods and general services
CS1 e Accountabilit
y
% procurement adhering to time and guidelines
April 2016
Mar 2020
164
Activity Summary Description of
Activity
Sect
or/
C
orp
ora
te
Go
al
Ob
ject
ive
S.U.C.C.E.S.S Criteria/Cor
porate Commitmen
t
Stra
tegy
Imp
act Output/Perf
ormance indicators
Base Target Start Date
End Date
Procurement of Works
This activity will involve the management and coordination of works contracts
CS1 a Accountabilit
y
% procurement adhering to time and guidelines.
. . April 2016
Mar 2020
Procurement of Consultancy Services
This activity will involve the management and coordination of consultancy services
CS1 a
Accountability
% procurement adhering to time and guidelines.
April 2016
Mar 2020
Preparation of Annual Procurement Plan
This activity will involve the preparation and submission of an Annual Procurement Plan to MOF and the OUR
CS1 c Accountability
% adherence to submission timeline
April 2016
Mar 2020
Implement and monitor Training and Development Plan
Work with members of the training committee to implement and monitor the Training and Development Plan.
CS5 b People TTC2 TTC3
No. of training and developmental programmes initiated and monitored
April 2016
Mar 2020
Returns on Investment (ROI) on Training
Develop and maintain a system for measure ROI on training courses.
CS5 b Service TTC1 TTC2 TTC3
System for measuring ROI
165
Activity Summary Description of
Activity
Sect
or/
C
orp
ora
te
Go
al
Ob
ject
ive
S.U.C.C.E.S.S Criteria/Cor
porate Commitmen
t
Stra
tegy
Imp
act Output/Perf
ormance indicators
Base Target Start Date
End Date
Preparation and Submission of Corporate, Strategic and Department Plans
This activity will involve the inputs to the Corporate and Strategic Goals and the preparation and submission of Department Plans, the STTO.
CS1 b Accountability
IP6 Timeliness of submissions and inputs.
. Aug. 2016
Oct 2019
Performance Management
This activity will involve setting performance targets for staff in the Admin/HR Department; performing half yearly reviews of performance targets for staff in the Admin/HR Department; notifying HOD about half yearly performance reviews for staff; appraisal of staff against targets and notifying HOD of the end of year performance reviews for staff.
CS1 b People TTC2 TTC3
% of staff whose performance targets has been signed off
Feb. 2017
Mar 2020
CS5 f People TTC2 TTC3
% adherence to half-yearly performance review
Feb. 2017
Mar 2020
CS5 f People TTC2 TTC3
% of HODs notified about half yearly results in standard time
Sept. 2016
Sept. 2019
CS5 f People TTC2 TTC3
% of staff appraised in standard time
100% April 2017
May 2020
166
Activity Summary Description of
Activity
Sect
or/
C
orp
ora
te
Go
al
Ob
ject
ive
S.U.C.C.E.S.S Criteria/Cor
porate Commitmen
t
Stra
tegy
Imp
act Output/Perf
ormance indicators
Base Target Start Date
End Date
CS5 f People TTC2 TTC3
% of HODs notified of annual results in standard time
- Mar 2018
Mar 2021
Implement and Sustain an inventory management system
This activity will entail the acquisition and installation of an inventory software system
CS6 d Environment TTC2 TTC3
Establish a distribution system
Jan-16
Mar-16
Develop or revise and maintain Policies, Procedures and Work Instructions.
This activity will include:
- reviewing and revising the Records and
Information Management (RIM) Policy,
the RIM Procedures and the RIM Work
Instructions.
- reviewing and revising the Human
Resource Management Policy and
Procedures.
This activity will include: reviewing and
revising the Procurement Policy and
Procedures.
This activity will include collaboration
with relevant internal and external
stakeholder to prepare an OUR Disaster
Management Policies and Procedures
Manual
CS2 e Accountability
TTC3 Re-approved and maintained Policy, Procedures and Work Instructions.
. 100% review each financial year.
April 1, 2016
March 31, 2021
167
Activity Summary Description of
Activity
Sect
or/
C
orp
ora
te
Go
al
Ob
ject
ive
S.U.C.C.E.S.S Criteria/Cor
porate Commitmen
t
Stra
tegy
Imp
act Output/Perf
ormance indicators
Base Target Start Date
End Date
Develop and or implement and maintain an active, semi-active and inactive records and information programme
Review and maintain an adequate electronic document and records management system (EDRMS). This activity consists of the capture, registration and internal dispatch of incoming records and documents; the capture, registration dispatch and tracking of outbound records and documents; the creation of listings of active, semi-active and inactive records and documents; control of documents and records, under the ISO 9001:2008; Records and Information Management System Assessments to determine the state of RIM in functional units. Review and revision of Business Classification and Records Retention and Disposition Programme; Submission of non-records for destruction approval; Digitization of records and documents and maintenance inactive records and documents of the OUR in an offsite facility.
CS6 g Environment IP1 TTC2
Controlled records and documents, based on ISO 9001:2008 and Operations Manual.
75% 85% April 2016
Mar 2020
CS6 g Environment IP1TTC2 % of outgoing documents are captured prior to dispatch.
40%. 90%. April 2016
Mar 2020
CS6 c Environment IP1 TTC2
Percentage of records listed
10% 30% April 2016
Mar 2020
CS6 e Environment IP11 TTC2
% compliance with records and documents control
80% April 2016
Mar 2020
CS6 g Environment IP1 TTC2
Number of RIM Assessments per year
0 1 April 2016
Mar 2020
168
Activity Summary Description of
Activity
Sect
or/
C
orp
ora
te
Go
al
Ob
ject
ive
S.U.C.C.E.S.S Criteria/Cor
porate Commitmen
t
Stra
tegy
Imp
act Output/Perf
ormance indicators
Base Target Start Date
End Date
CS6 e Environment IP1 TTC2
No. of reviews of Business Classification and Records Retention and Disposition Programme per year
1 1 April 2016
Mar 2020
CS6 e Environment IP1 TTC2
No. of submissions of non-records for destruction
1 1 April 2016
Mar 2020
CS6 e Environment IP1 TTC2
Percentage of records digitized
5% 25% April 2016
Mar 2020
CS6 e Environment IP1 TTC2
Level of maintenance against agreed RIM standards
50% 75% April 2016
Mar 2020
169
INFORMATION TECHNOLOGY Table 4-9. Information Technology Work Plan
Activity Summary Description of Activity
Sect
or/
C
orp
ora
te G
oal
Ob
ject
ive
S.U
.C.C
.E.S
.S
Cri
teri
a/C
orp
ora
te
Co
mm
itm
en
t
Stra
tegy
Im
pac
t Output/Performance indicators
Base Target Start Date
End Date
Expansion of Data Storage/Backup Systems: Acquire, install and configure additional data storage disks
Expansion of the storage capacity of the network to cater for forecasted growth in storage needs of the organization. All three data storage subsystems will be affected - both primary/active (disk drives) and secondary/backup (offline). This component is focussed on the disk backup subsystem.
CS6 b Environment TTC2 TTC3
Budget vs actual spend;
% Adherence to delivery time schedule
Expansion of Data Storage/Backup Systems: Acquire, install and configure a Tape Drive system
Expansion of the storage capacity of the network to cater for forecasted growth in storage needs of the organization. All three data storage subsystems will be affected - both primary/active (disk drives) and secondary/backup (offline). This component is focussed on the tape drive backup subsystem
CS6 b Environment TTC2 TTC3
Budget vs actual spend;
Adherence to delivery time schedule
Expansion of Data Storage/Backup Systems: Acquire, install and configure additional data storage disks for the SAN
Expansion of the storage capacity of the network to cater for forecasted growth in storage needs of the organization. All three data storage subsystems will be affected - both
CS6
b Environment TTC2 TTC3
Budget vs actual spend
170
primary/active (disk drives) and secondary/backup (offline). This component is focussed on the SAN subsystem
Adherence to delivery time schedule
Telecommunication Systems infrastructure improvement: Renew/Sign new CUG contract for mobile phone system
Expansion and enhancement of the telecommunication network. This will include the addition of new capabilities and the replacement/upgrading and expansion of the mobile phone CUG platform. New capabilities to be introduced including VoIP and Teleconferencing. This component is focussed on the CUG platform which is usually for a 2 year contract period
CS6 b Environment TTC2 TTC3
Budget vs actual spend
Adherence to delivery time schedule
Telecommunication Systems infrastructure improvement: Acquire, install and configure Video Conferencing system
Expansion and enhancement of the telecommunication network. This will include the addition of new capabilities and the replacement/upgrading and expansion of the mobile phone CUG platform. New capabilities to be introduced including VoIP and Teleconferencing: This component is focussed on the addition of a Teleconferencing system
CS6 b Environment TTC2; TTC3
(Budget vs actual spend;
Adherence to delivery time schedule
Telecommunication Systems infrastructure improvement: Acquire, install and configure VoIP system
Expansion and enhancement of the telecommunication network. This will include the addition of new capabilities and the replacement/upgrading and expansion of the mobile phone CUG platform. New capabilities to be introduced including VoIP and Teleconferencing: This component is focussed on the
CS6 b Environment TTC2; TTC3
Budget vs actual spend;
Adherence to delivery time schedule
Telecommunication Systems infrastructure improvement: Expand services for Internet Access
171
Expansion and enhancement of the telecommunication network. This will include the addition of new capabilities and the replacement/upgrading and expansion of the mobile phone CUG platform. New capabilities to be introduced including VoIP and Teleconferencing: This component is focussed on the expansion of internet bandwidth
CS6 b Environment TTC2; TTC3
Budget vs actual spend;
Adherence to delivery time schedule
Telecommunication Systems infrastructure improvement: Acquire, install and configure MS Lync server application
Expansion and enhancement of the telecommunication network. This will include the addition of new capabilities and the replacement/upgrading and expansion of the mobile phone CUG platform. New capabilities to be introduced including VoIP and Teleconferencing: This component is focussed on the implementation of unified telecommunication system that links all the existing elements our telecommunication system
CS6 b Environment TTC2 TTC3
Budget vs actual spend;
Adherence to delivery time schedule
Upgrade and expand the Disaster Recovery & Business Continuity Systems: Fire Suppression System with environmental sensors (RIM and IT)
The IT department do have a DR plan. This project is expanding on that plan as the organization increases its reliance on technology. However, this plan cannot stand alone, it needs to be integrated into an overarching BCP plan for the organization.
CS6 a Environment
TTC2 TTC3
Budget vs actual spend;
Adherence to delivery time schedule
Upgrade and expand the Disaster Recovery & Business Continuity Systems: Digitization of company records (RIM)
The IT department do have a DR plan. This project is expanding on that plan as the organization increases its reliance on technology. However, this plan cannot stand alone, it needs to be integrated into an overarching BCP plan for the organization.
CS6 b Environment
TTC2; TTC3
Budget vs actual spend;
Adherence to delivery time schedule
Upgrade and expand the Disaster Recovery & Business Continuity Systems: Upgrade firewall & anti-malware systems
172
The IT department do have a DR plan. This project is expanding on that plan as the organization increases its reliance on technology. However, this plan cannot stand alone, it needs to be integrated into an overarching BCP plan for the organization.
CS6 a Environment
TTC2; TTC3
Budget vs actual spend;
Adherence to delivery time schedule
Upgrade and expand the Disaster Recovery & Business Continuity Systems: Host website internally
The IT department do have a DR plan. This project is expanding on that plan as the organization increases its reliance on technology. However, this plan cannot stand alone, it needs to be integrated into an overarching BCP plan for the organization.
CS6 a Management
TTC2; TTC3
Budget vs actual spend;
Adherence to delivery time schedule
Hardware Acquisition and Upgrade: Computers (tablets, laptops & desktops) and accessories
CS6 b Environment
TTC2; TTC3
Budget vs actual spend;
Adherence to delivery time schedule
Hardware Acquisition and Upgrade: Large (networkable) Printers, MFPs and Scanners
While the company is striving to use less paper inevitably printing will still be necessary. The stock of network printers and MFP's however are old and as their operating costs rise they will need to be replaced. We will also use this opportunity to introduce print management tools aimed at reducing our use of consumables and by extension our carbon footprint. This we expect will also result in some cost savings.
CS6 b Environment
TTC2; TTC3
Budget vs actual spend;
Adherence to delivery time schedule
Hardware Acquisition and Upgrade: Connectivity and Access Devices
173
CS6 b Environment
TTC2; TTC3
Budget vs actual spend;
Adherence to delivery time schedule
Software Acquisition and Upgrade: Server Class Applications (Windows Server, Exchange, Sharepoint, MS Projects, SQL, GIS, etc.)
The main drivers for this is that Server class applications are at the core of the network, facilitating collaboration and sharing of data and information. They are constantly adding new feature sets and improving the user experience. They also are under constant threat from malwares designed either to extract data or to disable the system. As a result there is a constant need to patch and/or upgrade the system over time. The our utilise several such applications and as such each will in turn need to be upgraded
CS6 b Environment
TTC2; TTC3
Budget vs actual spend;
Adherence to delivery time schedule
Software Acquisition and Upgrade: Corporate Desktop Applications (Windows, MS Office Suite, Adobe Writer, MS Projects, etc.)
CS6 b Environment
TTC2; TTC3
Budget vs actual spend;
Adherence to delivery time schedule
Software Acquisition and Upgrade: Corporate Desktop Applications (Windows, MS Office Suite, Adobe Writer, MS Projects, etc.)
The development of custom applications represents a major thrust of the department to provide solutions to business
CS6 b Environment TTC2; TTC3
Budget vs actual spend;
174
problems that cannot be easily solved by off-the-shelf applications
Adherence to delivery time schedule
Upgrading of System/Network Security:
The OUR’s growing dependence on technology to deliver on its mandate has necessitated a growing demand to improve the resilience of the network to events that can disrupt the services offered. In light of this there will investments in protecting the network
CS6 b Environment
TTC2; TTC3
Budget vs actual spend;
Adherence to delivery time schedule
Achieve ISO 21001 Certification
Consequent on the achievement of ISO 9001:2008 certification by the organization, it naturally begs the question of when will the IT department follows this lead and achieve its own internationally recognised certification standard. For us this is the complementary ISO 27001. We believe this can be accomplished within a year and are therefore developing a plan to achieve this by December 2016.
CS6 b Environment
TTC2; TTC3
Budget vs Actual hours training received for financial year
Staff Development & Talent Management
Attendance at Classroom Training, Online Webinars & access to professional subscription services Workshops
CS5 b People
TTC2; TTC3
Budget vs Actual hours training received for financial year
Staff Development & Talent Management
Classroom Training Online Webinars & subscription services Workshops: Attendance at Tradeshows & Conferences (Professional networking and training)
CS5 b People
TTC2; TTC3
Budget vs Actual hours training received for financial year
175
FINANCE Table 4-10. Finance Department Work Plan
Activity Summary Description of Activity
Sect
or/
C
orp
ora
te G
oal
Ob
ject
ive
S.U
.C.C
.E.S
.S
Cri
teri
a/C
orp
ora
te
Co
mm
itm
en
t
Stra
tegy
Imp
act
Output/Performance indicators
Base Target Start Date
End Date
Preparation of the annual budget
Prepare budget tables for input to the Corporate Plan Do analysis of draft budget against previous year's for input to the Corporate Plan Prepare budgeted financials (Balance Sheets, Income Statements, and Statements A&B) for 3 years broken out by quarters.
CS4 g Manageme
nt IP6
Draft Budget for 2016/17 – 2018/19 is prepared for consultation with stakeholders
Oct-15
Draft Budget for 2016/17 – 2018/19 is prepared for submission to the MoFP.
November 30, 2015
Final Budget for 2015/16 – 2017/18 is accurately prepared and submitted to MoFP
December 31, 2015
Preparation of Quarterly Reports
Statements A&B quarterly reports submitted to the MOF Quarterly expenditure reports prepared and submitted to the HODs Variance analyses and recommendations
CS4 g Manageme
nt IP6
% of Statements A & B quarterly reports that are accurately prepared and submitted to MoFP
75%
176
are reported on a quarterly basis to all Heads of Department and the Office.
% of Expenditure Analyses quarterly reports that are accurately prepared and submitted to SMM
75%
% of Reports that are accurately prepared and submitted within 30 days of the end of the quarter
75%
Audit
Prepare annual financials for audit. External audit completed and laid before Parliament within the statutory period
CS2 b Stewardshi
p IP3
The draft financials prepared for audit
April 31st
Audited financials completed and submitted to the Cabinet Office
July 31st
Stewardship of the OUR's financial resources
Review the systems of internal control and update the Policy and Procedural Manual Manage the OUR's investment portfolio to optimise returns
CS2 b Stewardship
IP3
Review completed and the Policy and Procedural Manual updated in standard time, days
60 days
Average Investment Rate ( within the specified risk tolerance set by the Office)
ISO 9001:2008 Certification
Undertake assigned activities to enable the OUR to become ISO 9001 certified and to maintain certification
CS2 b Stewardship
IP3
% adherence to audit schedule according to ISO 19011:2011 Management System Auditing guidelines and respond to CARs
90%
177
Management of Staff benefits
This includes: Ensuring staff members are paid on a timely basis; Management staff loans; Management of health and pension benefits
CS6
People
# of months that staff are paid by the 25th
90%
# of repayment loan schedules not done when completed loan application forms received.
2
% of vendors' authorisation or bills of sale or insurance notices or liens prepared within 3 days of notification.
Liaise with Pension Consultant, Guardian Life, etc. as agreed on with staff members
% of tasks completed within the agreed timeframe that were assigned by Trustees.
90%
% Trustees' meeting attended & quarterly reports provided to the Office.
90%
178
Management of other payments and receipt
This includes: Making payments for statutory deduction to the relevant authority; Making payments to 3rd parties on time; Calculating regulatory fees for entities; Managing receivables such that there is a 10% reduction at the end of the year; Providing Senior Management with regular reports on the status of the collection of regulatory fees.
CS4
Management
% of the statutory deductions paid over on time
100%
% of third 3rd party payments made within the times specified
75%
% of invoices prepared accurately and within the agreed time
90%
% reduction in receivables achieved
90%
# of months that collections report is provided to Senior Managers in agreed time
11
Succession Planning
Equip staff to take on additional responsibilities at a higher level. Short and medium term training needs developed for each staff member
CS6
People
% of key position in department with a ready successor
% of department staff with training plan in place
179
SECRETARY TO THE OFFICE (STTO) Table 4-11. STTO Work Plan
Activity Summary Description of
Activity
Sect
or/
Co
rpo
rate
Go
al
Ob
ject
ive
S.U
.C.C
.E.S
.S
crit
eri
a/co
rpo
rate
com
mit
me
nt
Stra
tegy
Imp
act
Output/Performance indicators
Base Target Start Date
End Date
Preparation of the Corporate Business Plan
Development of the Work Programme and Budget for the four-year period 2016 - 2020. This involves work in the sectors as well as the supporting aspects of the business.
CS1 a Accountability IP6 Submission of Corporate Plan to MOFP
Draft - Nov. 30 2016; Final, December 31, 2016
Aug-16
Dec-16
Monitoring Activities of the Corporate Business Plan
The STTO Department will monitor the implementation of the work programmes in the approved Corporate Plan through the monthly reports submitted by Heads of Departments and keep the Office aware of the status of these activities.
Accountability IP6 % adherence to HOD monthly report submission
70%
Managing the Licensing Process
Coordination of the due diligence process for licences applications; maintenance of a comprehensive database on Licences issued; and monitor the status of all licences.
CS2 g Stewardship IP13 Percentage of licences Applications processed within the standard time of ninety (90) days.
80%
Documents for Office Decision
180
Activity Summary Description of
Activity
Sect
or/
Co
rpo
rate
Go
al
Ob
ject
ive
S.U
.C.C
.E.S
.S
crit
eri
a/co
rpo
rate
com
mit
men
t
Stra
tegy
Imp
act
Output/Performance indicators
Base Target Start Date
End Date
STTO has the responsibility to ensure that all documents being sent to the Office for decision-making are properly documented and have the requisite approvals.
CS2 Accountability IP6 Percent adherence to department's standard Operating Procedures
80%
Preparation of Quarterly Reports for MOFP
As a statutory requirement, Reports on the activities on the Corporate Plan are sent to the MOFP on a quarterly basis.
CS2 b Accountability IP6 Percentage adherence to timelines set by external agencies
90%
Preparation of Annual Report for PIOJ
The OUR provides an annual report on the sector activities to the PIOJ. The report provides information that is required for the production of the Economic & Social Survey Publication.
CS2 b Accountability IP6 Percentage adherence to timelines set by external agencies
90%
Managing the OUR's external and international relations with other regulators and institutions
The OUR encourages cooperation, dialogue and cross-training with other regulators and institutions. This allows cutting edge information to be shared and acted upon.
CS2 b Accountability IP7 Percent adherence to department's standard Operating Procedures
90%
Managing relations with utility operators and other stakeholders
This is to encourage dialogue, transparency and greater efficiencies.
CS2 a Accountability IP7 Percent adherence to department's standard Operating Procedures
90%
Gazetting of Regulatory Fees/Tariffs
181
Activity Summary Description of
Activity
Sect
or/
Co
rpo
rate
Go
al
Ob
ject
ive
S.U
.C.C
.E.S
.S
crit
eri
a/co
rpo
rate
com
mit
men
t
Stra
tegy
Imp
act
Output/Performance indicators
Base Target Start Date
End Date
This is a statutory requirement. All Schedule of fees have to be gazetted. This activity is done after approval of tariffs or calculation of regulatory fees.
CS2 b Accountability IP 7 Percent adherence to department's standard Operating Procedures
90%
182
QUALITY MANAGEMENT SYSTEM Table 4-12. Quality Management System Work Plan
Activity Summary Description of Activity
Sect
or/
Co
rpo
rate
Go
al
Ob
ject
ive
S.U
.C.C
.E.S
.S
crit
eri
a/co
rpo
rat
e c
om
mit
men
t
Stra
tegy
Imp
act
Output/Performance
indicators Base Target
Start Date
End Date
The documentation of business process and procedures
The documenting and updating of the OUR operations manual with previously undocumented processes and procedures. Also the continued testing and modifying the already document process and procedures as part of continual improvement.
CS4 c Management IP3 IP1 TTC2
% increase in the number of documented processes and procedures.
N/A 20% 2016-Apr-
1
2016-Mar-
31
CS2 e Stewardship
Management of Enterprise Risk Management
The management and maintenance of the OUR enterprise risk management framework for the each department and unit, and a comprehensive risk register and mitigation strategy for the organization.
CS4 b Management IP4 The production of an approved comprehensive risk register.
0% 100% 2016-Jan-02
2016-Aug-31
Implementation of the Business Continuity Plan
A Business Continuity Plan (BCP) will be developed and implemented throughout the organization to ensure the measures are in place to recover from major to minor disruption in the operations of the OUR. The disruption of the operations of the OUR has significant impact to the regulation of Jamaica’s electricity, telecommunications, water and sewerage sectors. The BCP will contain a detailed disaster preparedness and business resumption plan that will used to achieve complete recover from any disruption.
CS4 e Management IP4 TTC3
The production of an approved business continuity plan
0% 100% 2016-Jan-02
2017-Jun-30
183
Activity Summary Description of Activity
Sect
or/
Co
rpo
rate
Go
al
Ob
ject
ive
S.U
.C.C
.E.S
.S
crit
eri
a/co
rpo
rat
e co
mm
itm
ent
Stra
tegy
Imp
act
Output/Performance
indicators Base Target
Start Date
End Date
Implementation of the Strategic Initiatives
The project objective is to transform the organization by increasing its capacity to deliver on its Mission, Vision and Strategic Initiatives, while adhering to the quality initiatives of the organization, specifically to: • Connect the strategic objectives to the OUR’s Corporate Plan and the individual personnel goals using the Balanced Scorecard methodology. • defined, documented, and implementation the following Strategic Initiatives: a) Develop and implement an IT strategy to support the OUR strategy; b) Design and Implement a Leadership Development Program; c) Develop and implement a system to articulate and advocate policies to drive the OUR strategy; d) Develop and implement a system to continually review policies, procedures and processes to realign to the OUR strategy; e) Develop and implement a culture alignment program around the Core Values, stakeholder commitments and the paradigm shifts; and f) Propose amendments to existing legislation to provide an appropriate framework for the effective development and regulation of the sectors regulated by the OUR.
CS1 a Accountability TTC1;TTC2; TTC3;TTC4
Implementation of the Strategic Initiatives
0% 100% 2016-Jan-
02
2017-Jun-30
CS2 c Stewardship
CS2 d Stewardship
CS5 a People
CS5 f People
184
Activity Summary Description of Activity
Sect
or/
Co
rpo
rate
Go
al
Ob
ject
ive
S.U
.C.C
.E.S
.S
crit
eri
a/co
rpo
rat
e co
mm
itm
ent
Stra
tegy
Imp
act
Output/Performance
indicators Base Target
Start Date
End Date
Quality Management System Management Review
The Management Review of the QMS will be held annually to review and determine the improvement in the quality of the products (Determination Notice, Decision, etc.) produced by the OUR. The improvement will lead to increased customer satisfaction with the services provided by the organization in the following ways: a) Increase Customer Satisfaction with our Service; b) Communicates OUR’s Processes; c) Develop a Professional Culture and Better Employee Morale; and d) Consistency in Operations.
CS4 d Management IP2 % adherence to production and submission of a Management Review Report in the agreed time
100% 100% 2016-Apr-
1
2014-Apr-30
CS3 b Citizen-focused programmes
CS2 e Stewardship
Quality Management System Surveillance Audit
An annual surveillance audits will be performed by the Registrar to verify that the quality management system remains effective and compliant with the ISO 9001 standard. The Registrar will check key elements of the quality management system in the audit to ensure that the Internal Audit and Management Review activities continue to be effective, and verifies your corrective action for any non–conformances that may have resulted from previous audits.
CS2 b Stewardship IP3 The maintenance of the ISO 9001:2008 Certification
100% 100% 2016-
May-1
2016-May-
30
CS1 a Accountability
185
Activity Summary Description of Activity
Sect
or/
Co
rpo
rate
Go
al
Ob
ject
ive
S.U
.C.C
.E.S
.S
crit
eri
a/co
rpo
rat
e co
mm
itm
ent
Stra
tegy
Imp
act
Output/Performance
indicators Base Target
Start Date
End Date
Transition to ISO 9001:2015 Quality Management System
The organization has three years to transition to the ISO 9001:2015 Quality Management System standard which supersedes the ISO 9001:2008 standard which we are current certified under. The new standard is different in a significant number of ways that will force the organization to make a number of changes to remain compliant. The activities to be undertaken include the following: a. Sensitization training for all the staff; b. Training for internal auditors, management representative and process owners; c. Gap analysis of the requirements of the new standard; andd. Implementation Plan.
CS1 a Accountability TTC1 TTC2 TTC3 TTC4
The certification to the ISO 9001:2015 standard
0% 100% 2016-Jan-02
2016-Dec-31
186
INDEPENDENT ADVISORY COUNCIL ON FINANCE AND ADMINISTRATION (IACFA)
4.17. The review of the Internal Auditor’s Reports will need more direct focus relating to Internal Control
deficiencies which do not appear to be receiving adequate Heads of Departments attention for remedial
action.
4.18. Work planned includes discussion of the Internal Audit Reports expected in the areas of Fixed Assets,
Facilities Management, Recruitment, Employees Assessment and improvement in Statutory Reporting
• In addition several CARs which resulted from work by the Internal Audit Department on ISO 9001: 2008 have been past due for some time. In this area we expect to receive Internal Audit Reports on update in documentation and follow up of identified process or documentation deficiencies especially in the areas of General Procurement, Work environment and Internal Communication, Recruitment Training and Employees Assessments, Financial Budgeting, The Consumer Appeal process and Consumer Satisfaction and Communication processes, Business Planning and Continuation procedures.
4.19. The IACFA will work with the Finance Department to facilitate engaging several Heads of Departments
who appear to be constantly tardy in providing the reasons that costs significantly exceed budgets.
4.20. The review of the OUR’s annual achievement against objectives set out in the Corporate Work Plan to
determine the level of the accomplishment
187
5. BUDGET - FISCAL YEARS 2016/2017
Overview
5.1. The budget submitted by the Office of Utilities Regulation (“OUR”) for fiscal year 2015/16 is
approximately $735m. This figure represents the net expenses of running the organization together with
the cost of replacing several capital items. The budget for the previous year (2015/2016) was
approximately $666m. The budget for 2016/2017 represents an increase of 10% over that for the last
fiscal year.
5.2. The budget has been developed on the assumption that the rate of inflation during the year will be 5.5%
and that the rate of exchange will be 125 Jamaican dollars to 1 U.S. dollar.
5.3. Table 1 attached, summarizes the cash requirements for fiscal years 2016/2017, 2017/2018, 2018/2019
and 2019/20. Table 2 shows the allocation of the 2016/2017 budget across the sectors. Table 3 indicates
the capital expenditure planned for the ensuing year.
Budget Items
Payroll and Payroll Related Expenses
5.4. In fiscal year 2016/2017, total payroll costs amount to J$434m, an increase of 14% over the last budget.
An increase in travelling allowances, as directed by the Ministry of Finance, has contributed significantly
to the increase in this expense. Payroll related costs which include statutory deductions and benefits
were included in the budget.
Training and Development
5.5. It is projected that the training budget will increase by 18% when compared to the budget
2015/2016. In addition to overseas training, a number of trainings will be conducted locally. The increase
is largely due to the changes in the exchange rate. As is customary, the OUR will seek grant funding from
donor agencies such as the World Bank and the Inter-American Bank to off-set other training costs.
Foreign Travel
5.6. The budget reflects a 16% increase for foreign travel. The increase is significantly impacted by the
exchange rate.
188
Repairs and Maintenance
5.7. There is a projected increase of 1% in this expenditure.
Information Technology
5.8. There is an increase of 10% in this expenditure.
Printing and Stationery
5.9. There is a projected increase of 8% in this expenditure.
Telephones
5.10. There is a projected marginal increase of 8% in this expenditure.
General Expenses
5.11. This expenditure item is projected to increase by 6% when compared to the budget of 2014/15.
Public Education and Public Relations
5.12. There is a projected increase of 15% in this budgeted item. This is in keeping with the activities
planned in the Consumer and Public Affairs Department as shown in Chapter 4.
Annual Report
5.13. Costs for the production of the Annual Report are projected to increase by 6% compared to the
budget of 2015/16
189
Consumer Advisory committee on Utilities (CACU)
5.14. Expenditure for this budget item is projected to remain the same when compared to 2015/2016
budget.
Motor Vehicle Expenses
5.15. Motor Vehicle expenses are budgeted to increase by 5%.
Consultancy Services
5.16. Consultancy services are expected to decrease significantly by 23%. A list of the major
consultancy projects planned for the year 2016/17 is provided below:
Regulation, Policy, Monitoring & Enforcement US$ (000) J$M
Sector Reviews (Telecoms) 90,000 11,250,000
Price Comparison Website (Telecoms) 10,000 1,250,000
Monitoring System 20,000 2,500,000
Review Electricity Structure (Electricity) 40,000 5,000,000
Office
Consultancy (Various Sectors) 50,000 6,250,000
Administration
Consultancy (Various) 40,000 5,000,000
190
Professional and Legal Fees
5.17. Professional and legal fees have increased by 20% when compared to the budget for last fiscal
year. This is due to anticipated increase in litigation in the upcoming year.
Office Rental
5.18. It is anticipated that office rental will remain the same.
Advertising
5.19. This item is projected to increase by 8% over last year’s budget.
Depreciation
5.20. For the purposes of producing its financial statements the OUR provides for depreciation on its
assets using the appropriate rates of the relevant asset. However, since depreciation is not a cash item it
is not included in the determination of the OUR’s funding needs.
Membership dues
5.21. Membership dues are projected to decrease by 2% over the budget for the previous fiscal year. Of
the $17m budgeted, fees to ITU, CTO & CTU account for $14m.
General Consumption Tax
5.22. The OUR is now mandated by law to pay GCT on goods and services, hence this provision is
made to offset this cost. The amount for this item is projected to increase by 5%.
Capital Expenditure
191
5.23. Capital Expenditure is projected to increase by 12% when compared to 2014/2015 budget.
Increases in the exchange rate has significantly impacted this expenditure.
Interest Earned
5.24. Interest earned is projected to increase by 7%.
Allocation of Budget to Sectors
5.25. Regulatory Fees have been allocated to the different utility service sectors on a basis that reflects
the time and resources to be expended in work related to each sector. The percentage of the budget
allocated to each sector is:
Table 5.3 Percentage Allocation of Costs to Sectors
5.26. The total amounts to be recovered from the different sectors based on the budget are as set out
below:
Sector Percent contribution
2015/2016 2016/17
Telecommunications 42 42
Electricity 41 42
Water 17 16
-
100 100
192
Table 5.4 Allocation by Sectors
Sector J$’ Million
2015/16 2016/17
Telecommunications 280 307
Electricity 273 310
Water 113 116
Total 666 734
Telecommunications Sector
5.27. There are three main providers of Telecommunications services and a number of smaller
operators. The main providers will be allocated a portion of the budget based on the gross revenues
reflected in their audited financial statements. With regard to the small providers, a minimum fee of
$300,000 will continue to be charged to holders of Carrier licences. In the case of Service Provider
Licensees the minimum fee will remain $50,000.
Electricity Sector
5.28. With regard to the assessment of regulatory fees for Jamaica Public Service Co. Ltd (JPS), this will
be calculated on the revenues net of Fuel and Independent Power Producer (IPP) charges. For this
assessment, the audited financial statement for the year ending December 2013 will be used to assess
the regulatory fees.
5.29. Small providers are required to pay a regulatory fee as stated in the respective licences.
Water Sector
5.30. The assessment of the regulatory fees for the National Water Commission will be net of NIC and
other small water providers.
TABLE 1
OFFICE OF UTILITIES REGULATION
BUDGET 2016/2017
2015/16
2016/2017 % change 2017/2018 2018/2019 2019/20
Budget EXPENSES Budget over 2015/16 Budget Budget Budget
281,000,671 Payroll 307,228,239
324,125,792 340,332,082 357,348,686
19,345,341 Statutory charges 21,716,873
22,911,301 24,056,866 25,259,709
64,077,301 Employee benefits 88,560,363
93,431,183 98,102,742 103,007,879
3,325,915 Other payroll-related costs 5,276,661
5,566,877 5,845,221 6,137,482
12,000,000 Increment and Merit Award 12,000,000
12,660,000 13,293,000 13,957,650
379,749,228 Payroll Related Costs 434,782,136 14 458,695,153 481,629,911 505,711,407
39,818,720 Training and development 47,000,000 18 41,506,570 43,581,898 45,760,993
17,201,255 Foreign travel 20,000,000 16 17,845,330 18,737,597 19,674,477
465,764 Local travel 500,000 7 518,625 544,557 571,784
4,000,000 Repairs and maintenance 4,050,000 1 4,220,000 4,431,000 4,652,550
8,156,340 Information Technology costs 9,000,000 10 8,622,249 9,053,362 9,506,030
649,640 Printing and stationery 700,000 8 750,580 788,109 827,514
6,468,000 Telephones 6,700,000 4 6,970,000 7,180,870 7,539,914
9,200,946 General expenses 9,773,017 6 10,310,533 10,826,060 11,367,363
19,100,000 Public education & outreach 22,000,000 15 22,323,516 23,569,692 24,748,177
754,600 Annual Report 800,000 6 796,103 835,908 877,704
1,800,000 C.A.committee 1,800,000 0 1,899,000 1,993,950 2,093,648
4,000,000 Motor vehicle expenses 4,200,000 5 4,220,000 4,431,000 4,652,550
77,034,560 Consulting services 59,554,560 -23 62,830,061 65,971,564 69,270,142
3,000,000 ISO Certification 5,040,000 68 0 0 0
17,368,838 Professional/Legal Fees 20,788,674 20 31,285,901 32,850,196 34,492,706
24,000,000 Office rental 24,000,000 0 25,320,000 26,586,000 27,915,300
1,300,000 Advertising 1,400,000 8 1,371,500 1,440,075 1,512,079
320,000 Finance charges 330,000 3 337,600 354,480 372,204
15,000,000 Depreciation 16,000,000 7 15,825,000 16,616,250 17,447,063
17,360,000 Membership dues 17,000,000 -2 18,314,800 19,230,540 20,192,067
10,000,000 General Consumption Tax 10,500,000 5 10,550,000 11,077,500 11,631,375
7,500,000 ITU Development Index Survey 7,700,000 3 7,912,500 8,308,125 8,723,531
11,752,000 LRIC Project 11,300,000 Regulations - 'Fixed Penalty " Regime
8,475,000 Review- Unfair Terms in Telecoms Contract 16,950,000 Enhanced Emergency Services Access - OCCUR Conference 7,000,000
0 0 0
332,975,663 Costs other than payroll 295,836,251 -11 293,729,869 308,408,732 323,829,169
712,724,891 Total expenses 730,618,387 3 752,425,022 790,038,643 829,540,575
Cash requirement:-
712,724,891 Expenses 730,618,387 3 752,425,022 790,038,643 829,540,575
-15,000,000 Less, depreciation -16,000,000 7 -15,825,000 -16,616,250 -17,447,063
-11,752,000 LRIC Project -11,300,000 Less, Regulations - 'Fixed Penalty " Regime -8,475,000 Less, Review- Unfair Terms in Telecoms Contract -16,950,000 Less, Enhanced Emergency Services Access 649,247,891 Sub-total 714,618,387 10 736,600,022 773,422,393 812,093,513
35,354,945 Capital expenditure 39,532,200 12 41,706,471.00 43,791,794.55 45,981,384
684,602,836 Sub-total 754,150,587 10 778,306,493 817,214,188 858,074,897
Less, miscellaneous income:-
-14,000,000 Interest earned -15,000,000 7 -9,000,000 -9,500,000 -9,975,000
-4,000,000 Processing Fees -4,000,000 0 -3,000,000 -3,500,000 -3,675,000
-200,000 Other income -200,000 0 -200,000 -220,000 -231,000
666,402,836 Net cash requirement 734,950,587 10 766,106,493 803,994,188 844,193,89
7
TABLE 2
OFFICE OF UTILITIES REGULATION
Budget Allocation to Sectors
Budget
Budget ----------------Money-------------------- -----------Percentages-----------------
2015/16 EXPENSES 2016/2017 Telecoms Elec Water Telecoms Elec Water Check
281,000,671 Payroll 307,228,239 115,579,264 127,468,996 64,179,979 37.62 41.49 20.89 100.00
19,345,341 Statutory charges 21,716,873 8,169,888 9,010,331 4,536,655 37.62 41.49 20.89 100.00
64,077,301 Benefits 88,560,363 33,316,409 36,743,695 18,500,260 37.62 41.49 20.89 100.00
3,325,915 Other payroll-related costs 5,276,661 2,032,570 2,359,723 884,368 38.52 44.72 16.76 100.00
12,000,000 Incremental and Merit Award 12,000,000 4,514,400 4,978,800 2,506,800 37.62 41.49 20.89 100.00
379,749,228 Payroll Related Costs 434,782,136 163,612,530 180,561,544 90,608,062 37.63 41.53 20.84 100.00
39,818,720 Training 47,000,000 19,707,100 20,905,600 6,387,300 41.93 44.48 13.59 100.00
17,201,255 Foreign travel 20,000,000 9,458,000 8,752,000 1,792,000 47.29 43.76 8.96 100.00
465,764 Local travel 500,000 200,001 250,000 49,999 40.00 50.00 10.00 100.00
4,000,000 Repairs and maintenance 4,050,000 1,620,000 2,025,000 405,000 40.00 50.00 10.00 100.00
8,156,340 Information technology 9,000,000 3,600,000 4,500,000 900,000 40.00 50.00 10.00 100.00
649,640 Printing and stationery 700,000 279,999 350,000 70,001 40.00 50.00 10.00 100.00
6,468,000 Telephones 6,700,000 2,680,000 3,350,000 670,000 40.00 50.00 10.00 100.00
9,200,946 General expenses 9,773,017 3,939,067 4,871,416 962,534 40.31 49.85 9.85 100.00
19,100,000 Public education & Public relations 22,000,000 8,800,000 11,000,000 2,200,000 40.00 50.00 10.00 100.00
754,600 Annual Report 800,000 320,000 400,000 80,000 40.00 50.00 10.00 100.00
1,800,000 C.A.committee 1,800,000 360,000 720,000 720,000 20.00 40.00 40.00 100.00
4,000,000 Motor vehicle expenses 4,200,000 1,680,000 2,100,000 420,000 40.00 50.00 10.00 100.00
77,034,560 Consulting services 59,554,560 30,599,133 27,007,993 1,947,434 51.38 45.35 3.27 100.00
3,000,000 ISO Certification 5,040,000 2,016,000 2,520,000 504,000 40.00 50.00 10.00 100.00
17,368,838 Prof./legal fees, etc. 20,788,674 9,450,531 9,448,452 1,889,690 45.46 45.45 9.09 100.00
24,000,000 Office rental 24,000,000 9,600,000 12,000,000 2,400,000 40.00 50.00 10.00 100.00
1,300,000 Advertising 1,400,000 560,000 700,000 140,000 40.00 50.00 10.00 100.00
320,000 Finance charges 330,000 132,000 165,000 33,000 40.00 50.00 10.00 100.00
15,000,000 Depreciation 16,000,000 6,400,000 8,000,000 1,600,000 40.00 50.00 10.00 100.00
17,360,000 Membership dues 17,000,000 14,830,800 1,156,000 1,014,900 87.24 6.80 5.97 100.00
10,000,000 General Consumption Tax 10,500,000 4,200,000 5,250,000 1,050,000 40.00 50.00 10.00 100.00
7,500,000 ITU Development Index Survey 7,700,000 7,700,000 0 0 100.00 0.00 0.00 100.00
11,752,000 LRIC Project 0 0 0 0 100.00 0.00 0.00 100.00
11,300,000 Regulations - 'Fixed Penalty " Regime 0 0 0 0 100.00 0.00 0.00 100.00
8,475,000 Review- Unfair Terms in Telecoms Contract 0 0 0 0 100.00 0.00 0.00 100.00
16,950,000 Enhanced Emergency Services Access 0 0 0 0 100.00 0.00 0.00 100.00
OCCUR Conference 7,000,000 2,800,011 3,500,000 699,989 40.00 50.00 10.00 100.00
332,975,663 Costs other than payroll 295,836,251 140,932,643 128,971,462 25,935,847 47.64 43.60 8.77 100.00
712,724,891 Total expenses 730,618,387 304,545,172 309,533,006 116,543,909 41.68 42.37 15.95 100.00
Cash requirement:-
712,724,891 Expenses 730,618,387 304,545,172 309,533,006 116,543,909 41.68 42.37 15.95 100.00
-15,000,000 Less, depreciation -16,000,000 -6,400,000 -8,000,000 -1,600,000 40.00 50.00 10.00 100.00
-11,752,000 LRIC Project
-11,300,000 Less, Regulations - 'Fixed Penalty " Regime
-8,475,000 Less, Review- Unfair Terms in Telecoms Contract
-16,950,000 Less, Enhanced Emergency Services Access
649,247,891 Sub-total 714,618,387 298,145,172 301,533,006 114,943,909 41.72 42.19 16.08 100.00
35,354,945 Capital expenditure 39,532,200 15,812,880 19,766,100 3,953,220 40.00 50.00 10.00 100.00
684,602,836 Sub-total 754,150,587 313,958,052 321,299,106 118,897,129 41.63 42.60 15.77 100.00
Less, miscellaneous income:-
-14,000,000 Interest -15,000,000 -6,244,443 -6,390,616 -2,364,855 41.63 42.60 15.77 100.00
-4,000,000 Processing Fees -4,000,000
-4,000,000
100.00
100.00
-200,000 Other income -200,000 -83,259 -85,208 -31,531 41.63 42.60 15.77 100.00
666,402,836 Net cash requirement 734,950,587 307,630,350 310,823,282 116,500,743 41.86 42.29 15.85 100.00
TABLE 3
Office of Utilities Regulation
Capital Expenditure FY 2016/2017 --------------Allocation to sectors-------------- --------------------Allocation to sectors------------
------------------Percentages---------------------- -------------------------Money---------------------------
Equivalent
Dep'n Charge J$ U.S.$
Rate J$ J$
Telecoms Elec
Water Total
Telecoms Elec Water Total
Leasehold improv'ts: -
INFORMATION TECHNOLOGY
Software
Data Loss Prevention (DLP)
6,720
840,000
ERP apps upgrade (HRMIS, AccPac, PowerPay, etc.) 10,560
1,320,000
Esecure E-mail
16,032
2,004,000
Desktop productivity suite of apps upgrade (MS Office) 20,160
2,520,000
53,472
6,684,000
Hardware
Laptops (replacement)
28,800
3,600,000
Scanners - High Speed (Acquisition/Replacement) 34,560
4,320,000
Printer/Multi-Function devices (Network class) 11,520
1,440,000
Backup Systems (Tape Drive)
6,720
840,000
Document Archiving System (Records Management) 9,600
1,200,000
91,200
11,400,000
Sub-total - IT
3,014,000
18,084,000 40.00 50.00 10.00 100.0
0
7,233,600 9,042,000 1,808,400 18,084,000
DOCUMENT MANAGEMENT
Software
Document Management Software
32,000
4,000,000.00
Equipment
Fire Suppression System
80,000
10,000,000.00
80,000
10,000,000.00
Document Storage
Storage Boxes
800
100,000.00
File Jackets
3,000
375,000.00
File Labels
1,200
150,000.00
5,000
625,000.00
Offsite Storage
Desk
3,616
452,000.00
Chairs
2,170
271,200.00
5,786
723,200.00
Sub-total - Document Management
2,558,033
15,348,200 40.00 50.00 10.00 100.0
0
6,139,280 7,674,100 1,534,820 15,348,200
FURNITURE AND FIXTURES
Desks (Replacement)
8,000
1,000,000
Executive chairs (Replacement)
4,800
600,000
Sub-total
266,667
1,600,000 40.00 50.00 10.00 100.0
0
640,000 800,000 160,000 1,600,000
Vehicles
Delivery vehicle
28,000
3,500,000
DDG Electricity
64,000
8,000,000
Less provision made in 2015-2016 budget
(56,000)
(7,000,000)
750,000
4,500,000 40.00 50.00 10.00
100.00
1,800,000 2,250,000 450,000 4,500,000
Cost of capital additions: -
6,588,700
Total 39,532,200 40.00 50.00 10.00 100.0
0
15,812,880 19,766,100 3,953,220 39,532,200
6. CONCLUSION
6.1. The leadership team at the OUR continues to fulfil on its commitment to ensure that the highest
standards are maintained in all areas by pursuing the strategic realignment of its operations, and
prudent management generally, to realise a positive outcomes. During the year, the OUR achieved a
huge milestone by being recommended for the International Organisation for Standardisation ISO
9001:2008 Quality Management System (QMS) certification. This certification allows the OUR to
benchmark its operations against global standards.
6.2. During fiscal year 2015/2016, the organization sought to improve its approach to regulating the sectors by
identifying critical success factors and indicators. Steps were made to collect baseline data and set
targets against the indicators where possible.
6.3. For the next four years, the organization’s work plan will be driven by sector-specific goals and objectives
as well as Internal Support goals.
6.4. Among the more critical assumptions underlying the plan are:
• staff (existing and to be recruited) will be operating at optimal output throughout the period of the plan;
• exiting vacancies will be filled professional operating at the required levels;
• staff turnover will be kept to a minimum. This is critical given the elongated learning curve that obtains
for regulatory professionals;
• that even in the absence of devolution, the OUR will be afforded the liberty to reclassify job functions
which will enable the OUR to retain its present staff complement or attract equivalent replacements
where there are losses;
• the resource needs identified in the budget will be approved and met;
• there will not be significant fall-out or delay in the payment of regulatory fees;
• policy, legislative and regulatory changes (legal, institutional and operational) already enacted or well
under way will not prove to be disruptive to the regulatory environment as to hamper the efficient
performance of tasks;
• the regulatory environment will not become more litigious than in the past year;
• where necessary the OUR will be able to outsource;
• such emergencies as arise will not be beyond the Office’s ability to meet and/or to outsource; and the
enforcement powers of the OUR will receive the necessary enhancement and support.
6.5. It is accepted that the programme will be subject to such modifications as may be required given the
dynamics of the regulatory environment for each sector.
6.6. Evident throughout work programme is the emphasis placed on measuring and monitoring the
performance of the regulated sectors with a view of better understanding the environment and
therefore making it possible to facilitate the improvement of the sectors and ultimately to improve
customer and service provider satisfaction.
7. Appendices
Appendix I: OUR Organisation Chart 2015/2016