By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Cable Bahamas is calling on industry regulators to show “fiscal restraint” after the latter’s proposed 2025 budget expanded year-over-year by a rate more than three times’ higher than it expected.

The BISX-listed communications provider, responding to the Utilities Regulation and Competition Authority’s (URCA) draft annual plan, signalled it had been taken aback by the overall 17 percent budget increase across the three sectors the latter regulates when it had at most anticipated a 5 percent hike compared to 2024.

Asserting that URCA seemed not to recognise “the financial challenges” faced by its licensees, whose fees finance its annual operating budget, Cable Bahamas was joined by its main rival, the Bahamas Telecommunications Company (BTC), which voiced similar concerns in urging the regulator “to enhance operational efficiency and reduce unnecessary financial burdens on licensees”.

And both carriers also questioned the need for URCA to expand beyond Nassau by establishing a separate office for the northern Bahamas in Grand Bahama, with BTC arguing that abandoning or delaying this move could generate “potential cost savings” for both the regulator and its licensees.

“The 2025 draft electronic communications sector budget has increased by a notable 22 percent compared to the previous year, justified by the phrase ‘continued efforts to promote the policy objectives of the electronic communications sector’. This explanation, however, lacks clarity,” Cable Bahamas argued.

“To reiterate our position on this draft budget, the Cable Bahamas group remains concerned with URCA’s approach, which seems not to fully consider the financial challenges faced by licensees. We would have anticipated no increases in the budget or, at most, a modest 5 percent increase.

“Instead, we observe an overall 17 percent increase across the combined three sectors [electricity and natural gas] and a 22 percent increase for the electronic communications sector. This raises concerns about fiscal restraint and the justification for such increases,” the BISX-listed provider added.

“We urge URCA to recognise that fiscal responsibility is crucial, and that any amendments to this draft budget should reflect prudent financial management. Licensees need assurance that their licence fees are being utilised efficiently and effectively.

“They expect high standards of work and accountability from URCA. In the absence of amendments demonstrating fiscal restraint, licensees may question the value they receive and demand greater transparency and quality in URCA’s deliverables.”

BTC, delivering similar criticisms, arguing that “there are opportunities to enhance URCA’s efficiency and ensure that the financial burden on licensees remains justifiable”. It said: “While BTC understands the necessity of funding regulatory oversight and initiatives to meet policy objectives, BTC considers there are alternatives on how URCA can find efficiencies within its budget, especially considering that the proposed budget represents a 22 percent increase in operational expenditure from the previous year.

“The 43 percent increase in conferences, training and travel is an area where URCA may achieve savings. While BTC agrees that staff participation in international forums is beneficial for staying abreast of global regulatory trends, there may be ways to reduce travel-related expenses....

“Also, while it is commendable that URCA has allocated more resources to consumer education, BTC believes the 126 percent increase may be excessive given the available technological channels for outreach. A more cost-effective approach could involve leveraging digital platforms such as social media, webinars and online educational tools, which would reach a broader audience at a fraction of the cost of traditional in-person outreach in the Family Islands.”

URCA, in its response to these concerns, said it “understands the financial concerns of licensees and is committed to ensuring efficient resource allocation. The increase in budget 2025 reflects the importance of continued exposure of professional staff in the regulatory sphere and the prioritising of various corporate and consumer relations (CCR) initiatives embarked upon locally and internationally.

“Notwithstanding the preceding, URCA is willing to review budget areas, explore cost saving alternatives, and engage in further dialogue to address industry concerns,” URCA added, moving in particular to address complaints over the more than doubling, or 126 percent increase, in the consumer education and public relations budget.

“In 2025, URCA has allocated an additional $90,000 to corporate and consumer relations initiatives. This increase is necessary to enhance consumer protection efforts and public awareness campaigns, ensuring that consumers are adequately informed about their rights and responsibilities,” it argued.

“In 2024, URCA reallocated $62,000 from the consumer education budget to support its strategic planning retreat in Grand Bahama. Additionally, $8,000 was redirected to subsidise the completion of critical sector projects. This resulted in a lower allocation to consumer education in 2024, affecting year-on-year comparisons.

“Given the reallocation in 2024, URCA must now address outstanding consumer education initiatives while simultaneously advancing new projects planned for 2025. The increased budget ensures that these obligations are met effectively.”

Summing up, URCA added: “URCA remains committed to fiscal prudence and maximising efficiency in its expenditure. We will continue to explore cost-effective digital alternatives where feasible, as suggested by stakeholders, while ensuring that consumer education objectives are met in alignment with our regulatory mandate.”