By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Utilities Regulation and Competition Authority (URCA) has effectively admitted that its “earlier than expected” takeover of energy regulation left it struggling to cope, amid a lack of technical expertise and human resources.

The regulator, in its draft annual plan for 2017, conceded that “the limited availability of locally trained resources” had hampered recruitment for its newly-created Department of Utilities and Energy (DUE), established to oversee the energy sector.

It also admitted that the addition of electricity regulation to its workload had produced an “unexpected adverse impact” on other areas, likely meaning the communications industry which is already overseen by URCA.

Describing 2016 as “a year of significant change”, URCA said the coming into effect of the Electricity Act 2015 and URCA (Amendment) Act 2015 on January 28, 2016, had given it responsibility for an entirely new industry.

“While URCA anticipated this change, it took place earlier in 2016 than expected, resulting in an unexpected adverse impact on other work streams,” the regulator’s 2017 annual plan said.

“URCA also weathered internal reorganisation connected to the changes in regulated sectors, increased workload and material changes in staff at all levels. Accordingly, URCA’s achievements were significantly impacted by matters outside URCA’s direct control.”

URCA said “significant progress” in recruitment for its Department of Utilities and Energy was expected in early 2017, and it will share resources with the communications department “to the greatest extent possible” so that economies of scale can be achieved.

“URCA’s recruitment efforts in the UE Department have been slowed by the limited availability of locally trained resources,” the draft annual plan said.

“As such, URCA has made extensive use of external consultants to supplement its energy sector resource needs in 2016, and we anticipate continuing to do so in 2017, with gradual reduction in reliance on external consultants from 2018 onwards.”

Looking ahead to 2017, URCA said the initial one-year Public Electricity Supplier Licence issued to Bahamas Power & Light (BPL) will be replaced by a 15-year licence in the New Year.

The regulator also promised to “progress... in the best interests of persons in the Bahamas” the legal action launched by Grand Bahama Power Company, which is challenging URCA’s jurisdiction to regulate utilities in Freeport’s Port area.

On the communications front, URCA signalled its intention to overhaul the regulatory framework for Universal Service Obligations (USO), which requires providers such as BTC and Cable Bahamas to offer services in far-flung communities that are unprofitable.

“URCA had scheduled work on the additional regulatory measures which would comprise this framework for 2016,” the regulator said.

“However, recent reviews of the universal framework proposals has highlighted that the proposals on which these documents are founded may not be appropriate for the evolving environment in the Bahamas.

“It is noteworthy that the universal service framework which URCA intended to implement is based on transitional provisions contained in the Communications Act, and the then-sector policy. Technological and market changes in the intervening seven years have rendered those provisions dated and ineffectual.

“URCA notes that 2017 will see the conduct of a review of the Electronic Communications Sector Policy, which may have direct implications for the universal service framework.”