15 July 2020
For Immediate Release
On 15 July 2020 the Utilities Regulation and Competition, URCA, published its Procurement Regulations for Electricity Licensees, 2020. These Regulations are issued in pursuance of URCA’s obligations under the Electricity Act, 2015 specifically section 38 (1)(c).
The Procurement Regulations is in keeping with the objectives underpinning the National Energy and Electricity Sector Policies one of which is to ensure reasonable costs to electricity consumers. Procurement is one of the major elements of licensees’ costs.
The Regulations establishes the framework for procurement by licensees of generation resources, transmission, distribution, storage and supply assets and services to ensure compliance with economic purchasing obligations under each licensee’s respective license. Further, as licensees operate in a predominantly monopolistic market, the Regulations seeks to ensure consistent, efficient fair and transparent approach in the economic acquisition of goods, work and services by licensees in the Electricity Sector.
The minimum set of rules contained in the Regulations, are aimed at engendering trust in the procurement process resulting in the best economic outcome.
The Procurement Regulations apply to procurement by licensees where the value of goods, services and works to be procured is BSD500, 000 or more or generation capacity is at least 1MW. Licensees are required to implement procurement rules within 60 days of the entry into force of the Procurement Regulations or within 60 days of issuance of the relevant license, if obtained post the coming into force of the Procurement Regulations.
The Procurement Regulations published on URCA’s website along with URCA’s Statement of Results and Final Decision, follows public consultation on the Draft Procurement Regulations for Electricity Licensees, 2nd April to 11th May 2020. Only one response to the consultation document was received within the consultation period and that was from the Bahamas Power and Light Company, BPL. The full text of the consultation document, the response and the Procurement Regulations can be found here
Media Contact:
Mavis Johnson-Collie
Corporate and Consumer Relations Manager
Utilities Regulation and Competition Authority
Telephone: (242) 396-5201
Facsimile: (242) 393-0153
Email: mjcollie@urcabahamas.bs