| Today:
Friday ,November 21st, 2008 |
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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. |
| 6 |
Q:
Is the
regulator adopt a wide scope or narrow scope
review of the activities of the companies
i.e. will the regulator have wide scope
oversight powers so that it will be 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 is expected to start with a limited
scope review of the utilities or licensees
activities. This is so because the LEA at
the moment is still a very small organisation
and has limited means to engage in detailed
examination of the licensees activities.
In the future this will change and the regulator
will have the necessary resources to review
licensees activities in details. |
| 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 |
