| Today:
Tuesday ,September 07th, 2010 |
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| Frequently
Asked
Questions (Cont.) |
| 5 |
Q:
Will the regulator adopt an active or a
passive approach to exercising its powers
i.e. will it undertake enquiries on its
own initiative or will it effectively employ
a review and approval process only? |
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A:The
LEA will adopt a passive approach to regulation
initially, because of the need to engage
stakeholders in a consultative and transparent
manner, but it does have powers to intervene
where it considers this to be necessary.
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| 6 |
Q:
Does the regulator have wide scope oversight
powers so that it is able to examine (either
actively or passively) a range of the utilities
or licensees business practices or activities
that directly lead to cost incurrence and
hence tariffs levels. |
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A:
The LEA started with a limited scope review
of the utilities or licensees activities.
However, this has changed as the regulator
now has the necessary skills to review licensees
activities in details. During its first
years of operations the LEA had limited
means to engage in detailed examination
of the licensees activities. |
| 7 |
Q:Will
the regulator follow an open or closed approach
to its regulatory processes i.e. will customers
and other stakeholders be given an opportunity
to be heard when pricing and tariffs issues
are being decided (such as is the case in
many countries, where ‘public hearing
processes are used), or the regulator make
decisions on its own (using a process that
accepts only written submissions, and no
cross examination is allowed)? |
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A:
In the case of LEA, it will adopt a ‘closed’
approach, but it will consult with stakeholders
on key issues before decisions are made. |
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Electricity Authority |
