CHAPTER 25:01 PUBLIC UTILITIES COMMISSION ACT … Act 1999.pdf · · 2011-04-29LAWS OF GUYANA Public Utilities Commission Cap. 25:01 L.R.O. 3/1998 1 ... pay telephone service providers,

LAWS OF GUYANA

Public Utilities Commission Cap. 25:01

L.R.O. 3/1998

1

CHAPTER 25:01

PUBLIC UTILITIES COMMISSION ACT

ARRANGEMENT OF SECTIONS

SECTIONPART I

PRELIMINARY

1. Short title and commencement.2. Application.3. Interpretation.4. Definition of “public utility”.

PART IIPUBLIC UTILITIES COMMISSION

5. Establishment of Public Utilities Commission.6. Term of appointment of members.7. Emoluments of members.8. Conflicts of interest of members.9. Termination of appointment and resignation of members.

10. Disqualification of chairman or other member.11. Notification of appointment and removal.12. Oath of Office.13. Sittings of Commission.14. Immunity of members from suit.15. Procedure of Commission.

PART IIIOFFICERS AND EMPLOYEES

16. Officers and employees of Commission17. Employment of experts.18. Obtaining services of public officers.19. Superannuation benefits.

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Public Utilities CommissionCap. 25:012

PART IVBUDGET AND RESOURCES

20. Budget and resources of Commission.

PART VFUNCTIONS OF COMMISSION

21. Functions of Commission.22. Economic research.23. Advisory function of Commission.24. Investigations by Commission.

PART VISERVICE AND FACILITIES

25. Duty to provide adequate service.26. Proper service established on complaint.27. Commission may order extension of service.

PART VIIDEVELOPMENT AND EXPANSION

OF FACILITIES OR SERVICES

28. Development and expansion programme.29. Failure to implement development and expansion

programme.30. Restriction on ceasing operation of service.31. Power to prescribe quality and standard of service and

conditions relating to service to be contained in agreement.

PART VIIIRATES

(a) Principles

32. Rates to be just and reasonable.33. Agreement, licence or law regarding rate of return.34. Prohibition against discrimination in the matter of rate.35. Cost of production or generation.36. Joint use of facilities.

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37. Uniformity of rate.

(b) Change of rate

38. Continuance of existing rate.39. Tariffs filing.40. Adherence to tariffs.41. Notice of change of rate by public utility.42. Suspension of new rate.43. Temporary rates.44. Burden of proof.45. Fixation of rate.46. Adjustment of moneys due on variation of rates.

PART IXOTHER REGULATORY PROVISIONS

47. Approval by Commission to issue securities.48. Form of accounts.49. Uniform accounts.50. Interest on customer deposits.51. Obligation to bill.

PART XPROCEDURE

52. Complaint.53. Notice of complaint.54. Security.55. Representative complaint.56. Initiation of proceedings by Commission.57. Fixing of hearing.58. Hearings to be public.59. Decision of Commission.60. Oaths and subpoena.61. Notice.62. Proof of agreement.63. Records of proceedings.

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PART XIFUNDING OF THE COMMISSION AND COSTS

64. Annual assessment upon public utilities.65. Costs of investigation of proceeding.

PART XIIENFORCEMENT OF ORDERS

66. Execution of order.67. Compliance with order in proceedings relating to rate.68. Enforcement of order by taking over management of

business of public utility.69. Dissolution of public utility in default.

PART XIIIOFFENCES AND PENALTIES

70. Disobedience of order of Commission71. Failure of public utility to furnish information.72. Making or furnishing false return or information.73. Wilful default by employee, etc. of public utility in furnish

ing information.74. Obstruction of, or interference with, members, officers,

etc.of Commission in discharge of duties.75. Penalty for other offences.76. Penalty in the case of continuing offence.

PART XIVREVIEW AND APPEAL

77. Suspension or review by Commission of its owndecision or order.

78. Appeal and other proceedings.79. Stay of proceedings pending appeal.80. Determination of question by Court of Appeal.81. Case stated upon question of law.

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PART XVMISCELLANEOUS

82. Duty of public utility to co-operate with Commission.83. Duty of public utility to furnish information and returns.84. Ascertainment of value of property of public utility.85. Annual report.86. Evidence of documents.87. Power of Commission to make rules.88. Power of the Minister to make regulations.89. Repeal.90. Transitional Provisions.

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AN ACT to make provision for the establishment, functions andprocedure of the Public Utilities Commission and for matters connectedtherewith.

Enacted by the Parliament of Guyana:-

PART IPRELIMINARY

1. This Act may be cited as the Public Utilities CommissionAct 1999 and shall come into operation on such date as theMinister may by order appoint.

2. This Act shall -

(a) with effect from its commencement, apply to everypublic utility engaged in providing any service specifiedin section 4 (1) (a) or (b):

Provided that the Minister may by order expectfrom theoperation of this Act any public utility definedin section 4 (1) (a); and

(b) with effect from such date as may be specified by theMinister by order, apply to any public utility engaged inproviding any other service referred to in section 4 (1)(c) as may be specified in that order.

Provided that an order under this paragraphmay specify that this Act shall apply to any public utilityspecified in the order with such modifications,restrictions, exclusions and adaptations as may bespecified therein.

3. (1) In this Act -

(a) “chairman” means the chairman of theCommission, appointed under section 5 (1);

Short title andcommence-ment.

Application.

A.D. 1999

Interpretation.

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(b) “Commission” means the Public UtilitiesCommission established by section 5;

(c) “compensation” includes gain and reward;

(d) “consumer”, in relation to a public utility, means aperson making use of any service provided by thepublic utility;

(e) “licence” means a permission granted to a publicutility authorising it to provide a service;

(f) “member” means a member of the Commission;

(g) “public utility” has the meaning assigned to it bysection 4;

(h) “rate” means every rate, fare, toll, charge, rental orother compensation or payment whatsoever for anyservice provided by a public utility;

(i) “service” includes the accommodation affordedconsumers by a public utility, the supplying orfurnishing of any commodity derived directly from thepurposed in which a public utility is engaged and theuse and accommodation afforded the public by thefacilities employed by or in connection with anyservice provided by a public utility; but does notinclude any other commodity, by-product or articleproduced or manufactured by a public utility or anyassociate thereof that is offered for sale to the publicat retail or wholesale prices.

(2) In this Act, where a public utility has been granted a licence tooperate only in any part or parts of Guyana, references toGuyana shall be construed as references to such part or partsof Guyana.

4. (1) In this Act “public utility” means any person (including theDefinition of“public utility.”

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lessee, trustee, receiver or liquidator for such person) who orwhich owns facilities used to provide or provides the followingservices -

(a) the production, generation, storage, transmission, sale,delivery, furnishing or supplying, directly or indirectly, toor for the public, of electricity;

(b) the conveyance or transmission of oral, written, digital orany other form of messages or communications bytelephone, wireless telephony, telegraphy, or wirelesstelegraphy, satellites, cable television, telecom serviceproviders, pay telephone service providers, telecomresellers, internet and other telecom network serviceproviders, radio, common carriers, or cellular mobileproviders or any other method of transmission, currentlyoffered to the public or offered as common carriage in thefuture;

(c) any other service specified by the Minister by order, beingany of the following services -

(i) carriage of passengers, in motor buses or hire cars;

(ii) airport and airline services;

(iii) carriage of goods for hire or reward by goodsvehicles;

(iv) lighterage or cargo handling;

(v) dockage, wharfage or related cargo services; and

(vi) water supply services, except retail deliveries.

(2) Notwithstanding anything contained in subsection (1), anyperson, not otherwise a public utility, who or which provides anyservice only to a public utility, or only to himself or itself or hisor its employees or tenants, where such service is not resold toor used by others, shall not be deemed to be a public utility.

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(3) In this section “motor bus”, “hire car” and “goods vehicle” havethe same meanings as in the Motor Vehicle and Road TrafficAct.

PART IIPUBLIC UTILITIES COMMISSION

5. (1) There is hereby established a Commission to be known as thePublic Utilities Commission which shall consist of a chairmanand four other members to be appointed by the Minister fromamong persons appearing to the Minister to be of highcharacter and integrity and to be qualified as having hadextensive and relevant professional expertise in trade, finance,economics, law, accounting, engineering, or businessmanagement or extensive experience in matters relevant to thefunctions of the Commission.

(2) The Commission shall be a body corporate.

6. (1) Subject to subsection (2) and section 9, the members shall holdoffice for a period of three years but shall be eligible for re-appointment on the expiry of their term.

(2) Only for the first constitution of the Commission, upon theenactment of this Act, the Minister shall appoint a chairman fora term of three years, two members for a term of two years,and two members for a term of one year.

(3) Any subsequent appointment or re-appointment of thechairman and members shall be for three years.

7. (1) The chairman and other members shall be paid such salary andallowances as may be provided for in the annual budget of theCommission approved by the National Assembly, and the otherterms and conditions of appointment of the chairman or anyother members shall be such as may be determined by theMinister.

(2) The chairman and any other full time member of theCommission shall not, during any term of service on theCommission, hold any position in the Government and, within

Cap. 51:02

Establishmentof PublicUtilitiesCommission.

Term ofappointment ofmembers.

Emoluments ofmembers.

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the five years of preceding his appointment to any term, thechairman or other members shall not have held any seniorposition in a public utility under the jurisdiction of theCommission pursuant to this Act.

(3) The chairman and any other members as may be designated bythe Minister shall devote all of their time to the Commission.

8. (1) A member of the Commission who is interested in any publicutility, company, person or undertaking which is an interestedparty, or in any other matter, in any proceedings before theCommission, other than as a consumer in relation to anypublic utility, affecting a public utility shall disclose to theCommission the fact and nature of his interest and shall not takepart in any deliberation or any decision of the Commissionrelating to the said proceedings, and such a disclosure shallforthwith be recorded in the records of the Commission.

(2) In the case of the absence or other inability of the chairman toact at any meeting (except for recusal), the chairman mayauthorise in writing any other member to preside at the meeting;and in case of recusal of the chairman, the remaining membersbeing not less than three shall form a quorum and shall elect oneof their numbers to preside at the meeting.

(3) If, for any reason, there is an insufficency of members to forma quorum for a meeting, resulting in the Commission not sittingand impeding the proper functioning of the Commission, theMinister may appoint temporarily such number of ad hocmembers for such period as may be necessary to ensure theproper functioning of the Commission.

(4) The chairman or any other member shall during a period ofservice with the Commission, refrain from engaging indiscussions with any public utility under the jurisdiction of theCommission regarding his employment by such public utilityand shall be prohibited from accepting employment with anysuch public utility for a period of two years after ceasing to bea member of the Commission.

Conflict ofinterest ofmembers.

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9. (1) The Minister may terminate the appointment of the chairmanor any other member for any good and sufficient cause, and inparticular, if the chairman or other member -

(a) becomes of unsound mind or incapable of carrying out hisduties;

(b) becomes bankrupt or compounds with his creditors;

(c) is convicted of any felony or misdemeanor;

(d) is guilty of misconduct inconsistent with membership of theCommission.

(e) except for the reason provided for in section 8 (1), is absentexcept on leave granted by the Commission, from allmeetings of the Commission held during two consecutivemonths, or during any three months in any period of twelvemonths;

(f) fails to carry out any of the duties or functions conferredor imposed on him by this Act:

Provided that the appointment of the chairman orother member shall not be terminated under this subsectionunless he has been given a reasonable opportunity of beingheard.

(2) A member may resign from his office by letteraddressed to the Minister.

10. (1) The chairman or any other member shall not directlyor indirectly -

(a) hold, acquire or become interested in anyshare, stock, debenture or other security ofany public utility;

(b) have any interest in any contract or

Termination ofappointmentand resignationof members.

Disqualificationof chairman orother member.

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agreement for the construction of any works or theproviding of goods or any services for or by any publicutility;

(c) have any interest in any divice, appliance, machine,article, patent or patented process, or any part thereof,which is required or used by any public utility for thepurpose of its equipment or service;

(d) hire themselves as consultants or hire as consultantsfor the Commission any company or entity in whichthey have any interest, directly or indirectly;

(e) receive any other benefit, directly or indirectly, froma public utility, any group, association or personappearing at or interested in any proceedings of theCommission:

Provided that the chairman or any othermember shall not be deemed to have any interest in a publicutility by reason of the fact that he uses a motor bus or hirecar of any public utility or that he is the user or subscriberof a telephone, or the user or purchaser of electric current, orthat in the ordinary course he is a user of any other serviceof a public utility subject to this Act.

(2) Any person disqualified under subsection (1) shall not beappointed as the chairman or other member and in case he isso appointed, when the matter comes to the knowledge of theMinister, he shall terminate the appointment of such person aschairman or other member:

Provided that the appointment of any person as chairmanor other member shall not be terminated under this subsectionunless he has been given a reasonable opportunity of beingheard.

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(3) Where the chairman or any other member has, afterhe has been appointed the chairman or other member,committed a breach of subsection (1) he shall bedeemed to be guilty of misconduct.

11. The appointment, termination of appointment and removal ofthe chairman and other members shall be published in the

Gazette.

12. It shall be the duty of the chairman and other members to makeand subscribe an oath or affirmation that he will faithfully, fullyan impartially, and to the best of his ability, discharge the trust,and perform the duties devolving upon him by virtue of hisappointment, which oath or affirmation may be taken beforethe President, and shall be deposited by the chairman or othermember with the head of the Presidential Secretariat.

13. (1) The headquarters of the commission shall be atGeorgetown, but the Commission may, forconvenience generally, hold its sittings at any otherplace in Guyana.

(2) No sitting or order of the Commission shall be deemedto be invalid or ineffective only on the ground thatthere was a vacancy in the Commission or anymember did not participate in a sitting of theCommission:

Provided that a quorum of three membersinlcuding the chairman or the person authorisedor elected to preside at the meeting participatedin the sitting of the Commission.

14. No action, suit, prosecution or other proceedings shall bebrought or instituted personally against the chairman or anymember, officer or employee of the Commission in respect ofany act done bona fide in pursuance or execution or intendedexecution of his duties or powers under this Act.

Immunity ofmembers fromsuit.

Sittings ofCommission.

Oath of Office.

Notification ofappointmentand removal.

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15. Subject to the provisions of this Act or any other law, theCommission may regulate its own procedure and may makerules for that purpose, which rules shall be effective uponpublication and reasonable notice to interested parties.

PART IIIOFFICERS AND EMPLOYEES

16. (1) The Commission shall employ a secretary, and suchother officers and employees as are required for theproper conduct of the business of the Commission.

(2) The remuneration and other terms and conditions ofemployment (including the payment of any pension,graturity or other like benefits by reference of theirservice) of the secretary and other officers andemployees of the Commission shall be such as may bedetermined or varied by the Commission from time totime.

17. (1) The Commission may at any time, after consultationwith the Minister, retain the services of professionalpersons and determine the remuneration payable tosuch persons and their other terms and conditions ofappointment.

(2) Section 10 shall mutatis mutandis apply to professionalpersons considered for retention, or retained, by theCommission pursuant to subsection (1).

(3) Recommendations of professional persons retainedby the Commission pursuant to this section shall not bebinding on the Commission.

18. (1) For the purposes of any enquiry or examinationconducted by it or in the performance of any of theother functions conferred on it by this Act, theCommission may, with the consent of the appropriateauthority, utilise the services of any public officer or

Officers andemployees ofthe Commis-sion

Procedure ofCommission.

Employmentof experts.

Obtaininngservices ofpublic officers.

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other employee of the Government.

(2) In this section “appropriate authority,” in relation toany public officer or other employee of theGovernment, means the person or authority vestedwith power to appoint such public officer or employeeof the Government to the position he holds in theGovernment.

19. (1) Section 28 of the Public Corporations Act 1988 shallmutatis mutandis apply to public officers, persons (notbeing public officers) holding appointments in thepublic service, and teachers, referred to therein, whoare seconded, temporarily transferred or transferredto the Commission as if the Commission were a publiccorporation.

(2) The Commission may make such provisions as itdeems appropriate for the payment of pension,graturity or other allowances in respect of the serviceof its officers and other employees on their retirementfrom their employment with the Commission.

PART IVBUDGET AND RESOURCES

20. (1) The Commission shall determine its own annualbudget for submission to the Minister of Finance forinclusion in the annual budget presented to theNational Assembly.

(2) The Commission shall have the discretion andauthority to disburse funds obtained in accordancewith this Act, subject to the provisions of any otherwritten law.

(3) The funds and resources of the Commission shallconsist of -(a) sums assessed by the Commission and paid

Superannutationbenefits.No. 21 of1988.

Budget andresources ofCommission.

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over it by public utilities in accordance withPart XI;

(b) any property or investment acquired by, orvested in, the Commission;

(c) moneys earned or arising from any propertyor investment acquired by, or vested in, theCommission;

(d) sums provided to the Commission by orunder any appropriate law;

(e) sums allocated for time to time to theCommission from loan funds;

(f) sums borrowed by the Commission for thepurpose of meeting any of its obligations orthe performance of any of its functions; and

(g) all other sums or property which may in anymanner become payable to or vested in theCommission in respect of any matterincidental to its functions.

(4) All sums assessed by the Commission in the natureof fines or penalties imposed upon a public utility orany other company or person under this Act shall bepaid directly to the Accountant General by such publicutility, other company or person.

(5) The charges on any amount which may be allocatedto the Commission from any loan funds shall be metby the Commission except that all or any part of suchcharges may be met out of moneys provided by orunder any appropriation law.

(6) For the purposes of this section, the expression “loanfunds” means such sums as may be made available

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from time to time to the Government by way of loan.

PART VFUNCTIONS OF COMMISSION

21. (1) The Commission shall perform the regulatory,investigatory enforcement, and other functionsconferred on it by this Act.

(2) In carrying out the functions mentioned in subsection(1), the Commission shall be bound by and shall giveeffect to, the provisions of the Guyana EnergyAgency Act 1997, the Electricity Sector Reform Act1999, the Telecommunications Act 1990, any otherlaw governing a public utility subject to theCommissions jurisdiction of any licence issued by theGovernment to a public utility, and the terms of anyagreement between the Government and a publicutility or between the Government and an investor,which agreement is in relation to the privatisation orcapitalisation of the public utility; and in the event ofa conflict between such agreements or licence andany existing written law, the agreements or licenceshall prevail for purposes of this subsection (3) andsection 33, “written law” shall not include theConstitution.

(3) The decisions and orders of the Commission shall befair, in accordance with this Act and other writtenlaws in operation in Guyana and, subject to any rule oflaw or provision of this Act relating to burden of proof,based on the evidence presented to the Commission.

(4) Subject to the provisions of this Act, in the exerciseand discharge of its functions, the Commission shallnot be subject to the direction or control of any personor authority.

(5) The Commission has power to do anything which in

Functions ofCommission.

No. 31 of 1997No. 11 of 1999No. 27 of 1990

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the reasonable opinion of the Commission iscalculated to facilitate the proper discharge of itsfunctions or is incidental thereto.

22. The Commission may establish an office of economic researchwhich shall have the following functions -

(a) collecting and compiling any information which maybe of assistance to the Commission in the exercise ordischarge of its functions under this Act;

(b) keeping the information so collected and compiled up-to-date;

(c) conducting studies of economy and efficiency;

(d) making such valuations of the property of a publicutility as are required by the Commission.

(e) monitoring regulatory trends in Guyana and othercountries to enhance the efficiency, accuracy, andmodernity of the Commission’s internal operationsand its decision-making on standards and quality ofservice, pricing and evaluation of development andexpansion programmes;and

(f) such other functions as are incidental to any of thefunctions mentioned above.

23. The Commission shall act in an advisory capacity to theMinister in such matters concerning public utilities as arereferred to it by the Minister.

24. For the purposed of the exercise and discharge of the functionsof the Commission under this Act, the Commission shall havepower to initiate and conduct investigations into the operationsand standards of service of any public utility.

Economicresearch.

Advisoryfunction ofCommission.

Investigationsby Commis-sion.

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PART VISERVICE AND FACILITIES

25. (1) Subject to subsection (2), every public utility shallmaintain its property and equipment in such conditionas to enable it to provide, and shall make everyreasonable effort to provide, service to the public in allrespects safe, adequate, efficient, reasonable and non-discriminatory and shall make all such repairs,changes, alterations, substitutions, extensions andimprovements in or to such service as shall benecessary or proper for the accommodation andconvenience of the public or as shall be necessary toincorporate, from time to time, advances intechnology.

(2) Where an agreement exists between the Governmentand a public utility, or an agreement for theprivatisation or capitalisation of a public utility existsbetween the Government and an investor, or thelicence granted to the public utility or a written lawmakes provisions for the standard and quality ofservice, the service provided by the public utility shallbe deemed by the Commission, for the purposes of thisAct to be reasonable or adequate if the aforesaidstandard or quality is achieved and maintained.

26. (1) Where the Commission, after a hearing upon its ownmotion or upon a complaint, finds that the serviceprovided by a public utility is not in accordance withsection 25, the Commission shall by order determineand prescribe the adequate or reasonable service tobe provided by the public utility, including all suchrepairs, changes, alterations, extensions,substitutions or improvements and facilities as shall bereasonably necessary and proper for theaccommodation and convenience of the public; and,subject to any other written law, may also direct thepublic utility to pay to any consumer compensation for

Proper serviceestablished oncomplaint.

Duty toprovideadequateservice.

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loss or damage suffered by the consumer on accountof the failure of the public utility to comply with section25.

(2) An order under subsection (1) shall specifyreasonable time to comply with the same or, where thecompliance is to be in stages, different times may bespecified to comply with each stage.

27. (1) Subject to section 21 where the Commission, afterhearing upon its own motion or upon complaint, findsthat an extension by any public utility of existingservice would in the opinion of the Commissionprovide sufficient business to justify the constructionand maintenance of such extension, the Commissionmay order the public utility to make such extension toits service as the Commission may deem reasonableand expedient.

(2) Where a licence granted to a public utility restricts itsservice to specified areas, an order under subsection(1) shall not require it to extend the service to any areaoutside the specified areas.

(3) Where a licence granted to a public utility contains amechanism for dealing with extension of service, anyorder under subsection (1) shall comply with theprovisions of that mechanism.

(4) For the purposes of this section “sufficient business”means such business as will yield such gross revenue,within the extended area of service at the rates for thetime being authorised, as will produce a sum not lessthan the cost of operations, maintenance anddepreciation and will produce a reasonable return onthe capital outlay in respect of such extension:

Provided that the Minister and a public utilitymay agree as to what shall be “sufficent

Commissionmay orderextension ofservice.

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business,” in relation to that public utility andwhere any such agreement is arrived at, the

Commission shall have regard to theagreement in determining whether the extensionof the service will provide sufficent business.

PART VIIDEVELOPMENT AND EXPANSION

OF FACILITIES OR SERVICES

28. (1) Subject to any written law, a public utility must submitfor the approval of the Commission any programmefor development and expansion of facilities orservices, specifying the period within which it will beimplemented, the arrangements for financing and anyother information required to be submitted to theCommission by any written law.

(2) The Commission, after considering all the relevantaspects of the proposed development and expansionprogramme, including -

(a) the benefits to be accured to consumers ofthe service rendered by the public utility as aresult of the implementation of thedevelopment and expansion programme;

(b) the reasonableness of the cost and otherterms and conditions of the financingarrangement for the development andexpansion programme; and

(c) any other criteria set forth in any written law,or a licence.

may approve or reject the programme or may requirethe public utility to modify the programme suitably.

(3) The Commission shall, within a period not exceeding

Developmentand expansionprogramme.

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ninety days, consider and render a decision approvingor rejecting, or requiring the suitable modification of,a development and expansion programme submittedto the Commission by a public utility, and, to the extentthat the standard or quality of service that a publicutility is required to provide pursuant to section 25, 26or 27 is directly and materially dependent uponapproval of a development and expansion programme,a public utility shall be excused from providing suchstandard or quality of service pending approval ofsuch programme by the Commission.

(4) Where an agreement exists between the Governmentand the public utility, or an agreement for theprivatisation or capitalisation of a public utility existsbetween the Government and the investor, or thelicence granted to the public utility ot a written lawmakes provisions for programmes for thedevelopment and expansion of the facilities orservices of apublic utility, such programmes shall bedeemed to be approved by the Commission inaccordance with those provisions upon receiptthereof by the Commission.

(5) With respect to a development and expansionprogramme submitted to the Commission under thisPart, the Commission shall make the informationincluded in such programme available to consumers ata reasonable cost to the consumer to be set by theCommission.

Provided that, in making such informationavailable to consumers, the Commission shall take alldue and reasonable care to protect and shall notpublish otherwise make available the trade secretsof public utility, third party confiential information orany other information that may aid a competitor of thepublic utility, and such public utility may request thatsuch information be maintained in confidence by the

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Commission and the Commission shall cooperate withthe public utility in that regard.

29. (1) Where the Commission, upon its own motion or upona complaint by the Minister or an aggrieved party andafter giving the complainant and the public utility areasonable opportunity of being heard, finds that apublic utility is not carrying out a development andexpansion programmme in the manner approved bythe Commission or as provided in a licence or anagreement between the Government and a publicutility or between the Government and an investor inrelation to a privatisation or capitalisation of a publicutility or that the utility has failed or refused toimplement the development and expansion programmein a timely manner in any material respect, withoutlawful excuse, the Commission may, withoutprejudice to sections 68 and 69 and subject to theterms of the public utility’s licence, by its order -

(a) direct the public utility to pay to theAccountant General such penalty as theCommission, taking into account the extentand severity of the harm caused, thinks fit,being not less than one hundred thousanddollars nor more than twenty million dollars:

Provided that the imposition of anysuch penalty shall not affect the contractual rights orobligations of any party and, in particular, shall notalleviate or substitute for full and satisfactoryperformance of any contractual obligations undertaken by a public utility;

(b) recommend to the Government thesuspension or cancellation of the licencegranted to the public utility; or

(c) make such other order as it thinks

Failure toimplementdevelopmentand expansionprogramme.

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appropriate having regard to the facts andcircumstances of the case.

(2) Nothing in subsection (1) shall be deemed to preventor restrict in any manner any power vested in theMinister of the Government to revoke, suspend orcancel any licence granted to a public utility under theterms and conditions of the licence, the agreemententered into between the Government and the publicutility or between the Government and an investor inrelation to a privatisation or capitalisation of a publicutility, any written law or otherwise.

30. Except where a licence expires or is revoked, suspended,canceled or terminated in accordance with the conditions ofthe licence, no public utility shall cease to supply services withinits authorised area or any part thereof without first obtaining thepermission of the Commission.

31. Subject to sections 21 (2) and 25 (2), the Commission maymake rules prescribing -

(a) the quality and standard to be achieved andmaintained by a public utility in respect of any serviceprovided by it; and

(b) the conditions to be contained in, and to become partof, all agreements entered into by a public utility andconsumers in respect of any serivce provided by it.

PART VIIIRATES

(a) Principles

32. (1) Every rate made, demanded or received by any publicutility from persons making use of the serviceprovided by it, shall be just and reasonable and inconfirmity with any written law and with such rules asthe Commission may from time to time prescribe.

Restrictions onceasingoperations ofservice.

Power toprescribequality andstandard ofservice andconditionsrelating toservice to becontained inagreement.

Rates to be justand reasonable.

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(2) In determining the rate a public utility may charge forany service provided by it, the Commission shall haveregard to consumer interest and investor interest andto the rate of return obtained in other enterpriseshaving commensurate risks, provision of safe andadequate service at reasonable costs, and to assuringthe financial integrity of the enterprise.

33. Where the Government and a public utility have entered into anagreement, or where the Government and an investor haveentered into an agreement, in relation to the privatisation orcapitalisation of the public utility, or where the Government hasissued a licence to a public utility, or where a law exists,specifying -

(a) the rate of return the public utility or the investor isentitled to in respect of the capital invested ordedicated for providing any service; or

(b) the principles, procedures, formulae or mechanisms,on the basis of which such rate of return and, thereby,any rate charged by a public utility is to be determined,or adjusted,

the Commission shall be bound by and shall give effect tosuch agreement, licence or law in determining the rate apublic utility is entitled to demand or receive from anyconsumer or class of consumers or generally from allconsumers in relation to the service; and in the event of aconflict between such agreement or licence and any writtenlaw, the agreement or licence shall prevail.

34. (1) No public utility shall provide to any person anyservice at a rate which is unduly preferential ordiscriminatory.

(2) Nothing in subsection (1) shall be deemed to preventa public utility from demanding and receiving differentrates from different classes of consumers.

Agreement,licence or lawregarding rateof return.

Prohibitionagainstdiscriminationin the matterof rate.

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35. (1) For the purpose of determining the cost of providingany service by a public utility, so as to determine therate a public utility is entitled to demand and receive,the Commission shall have power and authority toinvestigate and, subject to section 33, decide whetherany expenditure incurred by the public utility isjustified or reasonable.

(2) Subject to any written law, where a public utility doesnot itself produce or generate that which it distributes,transmits or supplies to the consumers but obtains thesame from another source, the Commission shall havethe power and authority to investigate the cost of suchproduction or generation in any investigation orenquiry as to the reasonableness of the rate beingcharged or proposed to be charged by the public utilityfor any service provided by it.

36. (1) Subject to sections 21 (2) and 33, any public utilityhaving tracks, conduits, poles, wires, switchboards,exchanges, works or other equipment shall, for areasonable compensation (which in the case of anydispute shall be decided by the Commission on thecomplaint of any of the parties to the dispute), permitthe use of the same by any other public utility where-

(a) convenience or necessity requires such use;and

(b) such use will not result in irreparable injury tothe owners or other users of such equipment,or in any substantial detriment to the serviceprovided by or to such owners or other users.

(2) Subject to sections 21 (2) and 33, the Commissionmay, after investigation and hearing as to whether it -

(a) is in furtherance of convenience to, or thenecessity of, the public, including

Cost ofproduction orgeneration.

Joint use offacilities.

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27

specifically, but not exclusively, the publicinterest in service that is safe, adequate andeconomical;

(b) will not result in irreparable injury ordetriment to the owner or user of suchfacilities or equipment without adequatecompensation; and

(c) is just and reasonable,

by order require that two or more public utilities enterinto such arrangements, for interchange,interconnection, joint or combined or otherarrangements for the provision of any service, uponsuch terms and conditions as the Commission maydetermine.

(3) The use of any facility or equipment, or the provisionof any service, referred to in subsection (1) or (2) shallbe permitted by the public utility required to do so, andthe terms and conditions and compensation referredto therein shall be deemed to be lawful terms andconditions and compensation to be observed, followedand paid.

(4) An order of the Commission in respect of any matterreferred to in subsection (1) or (2) may be modified orrevoked by the Commission upon its own initiative oron receipt of a complaint from any public utility orconsumer affected thereby.

37. (1) Subject to sections 32 and 33, it shall be lawful for apublic utility to demand and receive, or for theCommission to fix, a uniform rate, to be charged fromall consumers or any class of consumers throughoutGuyana, or throughout any region into which Guyanais divided, for any service, provided by a public utility,notwithstanding that the cost of providing such

Uniformity ofrate.

LAWS OF GUYANA


service, in any area of Guyana is different from thecost of providing the service in any other area ofGuyana.

(2) Subject to sections 32 and 33, the Commission may,having regard to all relevant matters such as thedistribution of the population of Guyana, the need formaking the best use of the natural resources ofGuyana and the needs of the economic developmentof Guyana, direct the public utility to charge a uniformrate throughout Guyana, or throughout any region intowhich Guyana is divided, for any service provided bya public utility and the public utility shall comply withthe direction.

(b) Change of Rate

38. The rate being charged by a public utility on the first day ofJanuary, 1996 for any service rendered by it shall not beincreased, after that date except in accordance with theprovisions of this Act or any other written law:

Provided that nothing in this section shall affectan accrued right of any person regarding an increase in rates whichcame into existance after the first day of January, 1996, by virtue of afinding of a court of law or otherwise.

39. (1) Subject to section 33, every public utility shall, withinthree months of the commencement of this Act, andthereafter periodically within such time as may bespecified by the Commission or any written law, filewith the Commission in such form as it may specify,tariffs showing all rates actually being charged by thepublic utility from the first day of January, 1996 untilthe coming into operation of this Act, including ratesfor new services, and shall keep copies of such tariffsopen to the public for inspection.

(2) Subject to the provisions of this Act, the rates

Continuance ofexisting rate.

Tariffs filing.

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specified in such tariffs shall become the authorisedrates of such public utility only if approved inaccordance with the provisions of this Act or anyother written law.

40. (1) No public utility shall, directly or indirectly, demand orreceive, for any service provided by it, a greater orlesser rate than the rate specified in the tariffs of suchpublic utility applicable thereto, filed in the mannerprescribed by this Act or determined by theCommission.

(2) Notwithstanding anything contained in this section, itshall be lawful for a public utility, with the permissionof the Commission, to demand and receive from aconsumer any special rate agreed to by the publicutility and such consumer.

41. (1) Subject to section 33, where a public utility initiates anew service for which rates will be charged or isdesirous of changing any rate or rates being chargedby it for any service provided by it, the public utilityshall give thirty days notice to the Commission and filewith that notice a tariff stating the rate for the newservice or the new rate or rates.

(2) A notice under subsection (1) shall state -

(a) where it relates to changing any rate or rates -

(i) the existing and duly established rate orrates;

(ii) the changes proposed to be made in the rateor rates;

(iii) the date from which the changed rate orrates are to take effect;

(iv) the reasons for the change in rate or rates;and

(v) any other particulars reasonably required by

Notice ofchange of rateby publicutility.

Adherence totariffs.

LAWS OF GUYANA


the Commission or specified by any writtenlaw.

(b) where it relates to the rate for any new service -

(i) the date from which the rate for the newservice is to take effect; and

(ii) any other particulars reasonably required bythe Commission or specified by any writtenlaw.

(3) Subject to section 33, where the public utility has filedwith the Commission any tariff stating any new rate orrates in respect of any service provided by it, theCommission may, either upon complaint or upon itsown motion, enter upon a hearing to determinewhether such rate or rates are just and reasonable andwhere the Commission does not enter upon suchhearing within thirty days of the filing of the tariffstating the new rate or rates, such new rate or ratesshall be deemed to be the authorised rate or rates forthe service.

(4) Hearings entered upon by the Commssion under thissection shall be promptly scheduled and held, and thedecisions of the Commission under this section shallbe rendered as expeditiously as possible and, in anycase, not later than sixty days after the closing of thehearings.

42. (1) Where the Commission has entered upon a hearing asstated in section 41 (3) in respect of any new rateproposed to be charged by a public utility for anyservice, pending such hearing and the decisionthereon, the Commission may, upon delivering to thepublic utility affected thereby a statement in writing ofits reasons therefor, at any time before such new ratebecomes effective, suspend the operation of such ratefor a period not longer than six months from the timethe rate would otherwise become effective, but where

Suspension ofnew rate.

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a public utility fails to comply with request from theCommission for information required for the hearing,the Commission may extend the period ofsuspension for such period not exceeding threemonths as may be necessary.

(2) Where the operation of a new rate is suspended undersubsection (1), the rate in force, when the tariff statingthe new rate was filed under section 41(1), shallcontinue in force unless, the Comission establishes atemporary rate under section 43.

(3) If the hearing entered upon under section 41 (3) inrespect of a new or changed rate has not beenconcluded and an order containing the final decision ofthe Commission has not been made by theCommission before the expiry of the suspensionperiod imposed by the Commission under subsection(1), and the Commission has not set a temporary rateunder section 43, then the proposed new or changedrate shall come into effect on the expiry of the periodof such suspension:

Provided that if the rate finally determined asfair and reasonable by the Commission is less thanthe proposed new or changed rate, the consumersshall have the right to receive reimbursement asprovided in section 46(2).

(4) Hearings entered upon by the Commission under thissection shall be promptly scheduled and held, and thedecisions of the Commission under this section shallbe rendered as expeditiously as possible and, in anycase, not later than sixty days after the closing of thehearing.

43. (1) On a prima facie consideration of the criteria set forthin section 32(2) or, as the case may be, subject to theterms of any written law, licence or agreement

Temporaryrates.

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between the Government and a public utility orbetween the Government and an investor referred toin section 33, the Commission may, in any proceedingsinitiated under section 41(3) involving the rate or ratescharged or to be charged by the public utility, initiateeither upon its own motion or upon a complaint, if theCommission is of the opinion that the public interestso requires, by order fix a temporary rate or rates tobe charged by such public utility pening the finaldecision in such proceedings.

(2) Any temporary rate or rates fixed under subsection(1) shall be effective from a date specified in the orderuntil the final decision in the proceedings of theCommission referred to in subsection (1), unlessmodified or terminated sooner by the Commission.

(3) Subject to sections 32 (1) and 33, where theCommission, upon examination of any annual or otherreport or of any papers, records, books or otherdocuments or on the appraisal of the property of anypublic utility, is of the opinion that having regard to thecriteria set forth in section 32 (2), any rate or ratescharged by such public utility are producing a return inexcess of a fair return upon the fair value of theproperty of such public utility, used or useful in theservice provided by it, the Commission may by orderfix for a trial period not exceeding six months suchtemporary rate or rates to be observed by such publicutility as, in the opinion of the Commission, willproduce a fair return upon such fair value, and the rateor rates so fixed shall be effective from a datespecified in order of the Commission and shall becomepermanent at the end of such trial period, unlessmodified or terminated at any time during such trialperiod by the Commission.

(4) No order shall be made by the Commission under thissection fixing a temporary rate or modifying or

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terminating such temporary rate without giving thepublic utility and the consumers affected thereby areasonable opportunity of being heard, having regardto the fact that the rate proposed to be fixed ormodified or terminate is only a temporary rate.

44. (1) Subject to sections 32 and 33, in any proceeding, uponthe motion of the Commission involving, or inproceeding upon complaint by a consumer involving,any proposed increase in any rate charged by anypublic utility for any service, the burden of proof toshow that the rate involved is just and reasonable shallbe upon the public utility.

(2) Notwithstanding anything in subsection (1), in anyproceeding upon complaint by a consumer involvingany rate then being charged by a public utilityconsequent upon a final decision by the Commissionor by the operation of section 43(3), the burden ofproof to show that the rate involved is not just orreasonable shall initially be upon the complaint:

Provided that the public utility has compliedwith sections 82 and 83.

45. (1) Subject to sections 32 and 33, where the Commission-

(a) after a hearing upon its own motion or uponcomplaint finds that any rate being chargedby any public utility for any service is unjustor unreasonable; or

(b) at the conclusion of any hearing undersection 41(3) concludes that may new ratefiled by a public utility for any service is unjustor unreasonable,

the Commission shall determine the just and reasonablerate (including the maximum and minimum rates) to be

Fixation ofrate.

Burden ofproof.

LAWS OF GUYANA


thereafter observed by the public utility and shall fix thesame by order served on the public utility, and such rateshall constitute the legal rate the public utility is entitled todemand and receive for the service, until such rate ischarged in accordance with the provisions of this Act.

(2) Any rate lawfully being charged by a public utility shallnot be decreased by the Commission in relation to aperiod earlier than the date on which the Commissioncommenced a hearing which resulted in the decrease,and for the purpose of this section, a hearing does notinclude a re-hearing.

(3) Hearings entered upon by the Commission under thissection shall be promptly commenced, scheduled andheld.

46. (1) Subject to section 33, where any rate as finallydetermined by the Commission is in excess of the rateexisting prior to the filing with the Commission by apublic utility of a tariff stating a new rate under section41 (1), or of the rate fixed temporarily under section43 then the public utility shall be permitted by theCommission to amortize and recover, by means of atemporary increase in the rate as finally determined,the sum which represents the difference between thegross revenue actually received by the public utilityduring the period commencing with the date on which,under the notice given by it to the Commission, thenew rate was to have come into effect and ending onthe date on which the rate as finally determined by theCommission became effective, and the gross revenuewhich would have been received by the public utilityduring the same period if the rate as finally determinedby the Commission had been in effect.

(2) Subject to section 33, where, consequent on an orderfinally determining the rate that a public utility isentitled to demand and receive for any service

Adjustment ofmoneys due onvariation ofrates.

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provided by it, any consumer becomes entitled toreceive any sum from the public utility, it shallbe adjusted towards any sum likely to become due tothe public utility from the consumer for a reasonablefuture period, to be determined by the Commissiontaking the interests of the public utility and theconsumer into consideration, or the remainder paid incash to the consumer net of any amounts owed to thepublic utility if before the expiry of the aforesaidperiod he ceases to be a consumer in relation to thepublic utility.

PART IXOTHER REGULATORY PROVISIONS

47. (1) No public utility shall issue any stocks, shares ordebentures or other evidence of indebtedness,payable after more than one year form the datethereof, unless it has first obtained the approval of theCommission for the proposed issue or unless it hasbeen authorised by and issued in accordance with anagreement between the Government and a publicutility or between the Government and an investor forthe privitisation or capitalisation of a public utility.

(2) The Commission may grant the approval for theproposed issue in the amount applied for or in anylesser amount and subject to such conditions as it maydeem reasonable or necessary to impose and thepublic utility shall report on such issue to theCommission.

(3) Where a development and expansion programme,including the financial arrangement for the same, hasbeen approved by the Commission under section 28,it shall not be necessary for the public utility to obtainthe approval of the Commission separately under thissection for the issue of any stocks, shares ordebentures or other evidence of any indebtedness in

Approval byCommission toissue securities.

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relation to the financial arrangement so approved bythe Commission.

48. Subject to the terms of a licence, the Commission may by rulesprescribe the forms of all books, accounts , papers and otherrecords required to be kept by every public utility, and everypublic utility shall keep and render its books, accounts, papersand other records accurately and faithfully in accordance withinternationally accepted accounting principles in Guyana in theform and manner so prescribed by the Commission, and shallcomply with all directions of the Commission relating to suchbooks, accounts, papers and other records.

49. (1) Every public utility shall keep and render to theCommission in the form and manner referred insections 48 uniform accounts of all businesstransacted by it in relation to the service provided byit.

(2) Every public utility engaged directly or indirectly inany business other than the provision of any service,shall, if so required by the Commission, keep andrender separately to the Commission, in the form andmanner referred to in section 48, the accounts of allsuch other business, and this section and section 48shall apply to the books, accounts, papers and otherrecords of such other business in the same manneras they apply to the books, accounts, paper and otherrecords of the public utility in respect of the serviceprovided by it.

50. (1) Every public utility which requires its consumers, as acondition precedent to receiving any service offeredby such public utility, to make cash deposits with thepublic utility to secure payment of the sums payablefor availing of such service, shall pay interest on suchcash deposits at an annual compound rate of eightpercent or such other rate as may be specified in anyother written law,a licence held by the public utility or

Form ofaccounts.

Uniformaccounts.

Interest oncustomerdeposits.

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an agreement between the Government and the publicutility, or between the Government and an investor, inrelation to privatisation or capitalisation of the publicutility.

(2) The amount payable by a public utility to a consumerby way of interest under subsection (1) shall be paidto the consumer along with the cash deposit upontermination of the service for any reason, other thanunjustifiable nonpayment of the sums due to the publicutility for the consumer on account of the serviceprovided by the public utility to the consumer:

Provided that interest shall not be payable bythe public utility upon deposits held by the publicutility for less than six months:

Provided further that the consumer may,upon application therefor in the form prescribedby the Commission by rules and supplied by thepublic utility, obtain periodic payments ofaccumulated interest during hte continuance ofthe provision of the service when the interestequals or exceeds one thousand dollars:

(3) Every public utility to which subsections (1) and (2)apply shall disclose to the consumer with its final billingstatement in each calendar year, the amount ofinterest which has accumulated on the cash depositduring that calendar year and the total amount ofinterest which has accumulated and has not been paidto the consumer under subsection(2).

51. Every public utility shall supply every consumer every month,or at such other intervals as may be agreed to by theCommission or provided for in a licence or any written lawrelation to any consumer or class of consumers, a bill showingthe sum payable by the consumer on account of any serviceprovided by the public utility during the preceding month,

Obligation tobill.

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or other relevant period as may be agreed to by theCommission, or for such other intervals and periods as may beprescribed in its licence.

PART XPROCEDURE

52. (1) A complaint under this Act against a public utility maybe made by the Minister or any person (including anyother public utility) having an interest in the subjectmatter.

(2) A complaint shall state the particulars of the act oromission complained of, the public utility againstwhich the complaint is made and the relief sought.

(3) The Commission may make rules prescribing the formin which any complaint shall be made:

Provided that a complaint that furnishes theparticulars and information required to be providedby the form shall not be rejected only on the groundthat it is not strictly in accordance with the form.

53. Upon the filing of a complaint against a public utility, theCommission shall cause a copy thereof to be served upon thepublic utility, accompanied by a notice from the Commissionrequiring the public utility to satisfy the complaint, or to answerthe same in writing, within such reasonable time as may bespecified by the Commission in such notice:

Provided that the Commission shall have power, forgood and sufficient cause shown, to extend the time sospecified.

54. The Commission may require the complainant, not being theGovernment, to give security for the costs of the hearing andinvestigation of the complaint.

Complaint.

Notice ofcomplaint.

Security.

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55. (1) The Commission may permit one or more persons tomake a complaint against a public utility, on behalf ofa class of consumers or all consumers in relation tothat public utility.

(2) Where a complaint has been made under subsection(1) on behalf of a class of consumers, the Commissionshall cause to be published at the expense of thecomplainant or complainants, in a prominent place atthe headquarters of the Commission and in anewspaper having circulation in Guyana, a noticestating the particulars of the complaint and that thecomplainant or complainants have sought permissionto make the complaint on behalf of the class ofconsumers specified in the notice or all consumers inrelation to the public utility, the date, time and place ofthe hearing of the complaint, and that any personbelonging in that class of consumers or any of suchconsumers, who is desirous of being heard in respectof the request, shall be entitled to appear on the dateand at the time and place so specified to makerepresentations supporting or opposing the request.

(3) In the case of a complaint referred to in subsection (1),the Commission shall have power to join ascomplainant or respondent any person or personsbelonging to the class of consumer or consumers onwhose behalf the complaint has been permitted by theCommission to be made.

(4) A complaint referred to in subsection (1) shall not bewithdrawn or settled except with the permission of theCommission.

(5) Where the complainant or complainants have appliedfor permission to withdraw or settle a complaintreferred to in subsection (1), the Commission shallcause a notice thereof to be published, at the cost of

Representativecomplaint.

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the complainant or complainants, in a prominent placeat the headquarters of the Commission and in a newspapershaving circulation in Guyana, stating the date, time and placeof the hearing of the application, and -

(a) shall hear any person belonging to the class ofconsumers or consumers on whose behalf thecomplaint has been made, and who appears on thedate and at the time and place specified in the abovementioned notice and opposes the request; and

(b) shall have power to allow any such consumer who sorequests to continue to prosecute the complaint:

Provided that where such consumer does notappear to prosecute the complaint and where theCommission considers the terms of the proposedwithdrawal or settlement to be reasonable, theCommission shall grant the application forpermission to withdraw or settle the complaint.

56. (1) Where the Commission proposes to initiateproceedings under this Act against any public utility,the Commission shall serve on the public utility anotice stating the reasons for the initiation of theproposed proceedings, with the particulars relatingthereto, and the date, time and place of hearing.

(2) A notice of the proposed proceedings shall bepublished at the headquarters of the Commission andin a newspaper having circulation in Guyana.

(3) The public utility and any other person having aninterest in the subject matter of the proposedproceedings shall be entitled to appear at the hearingand be heard.

57. (1) Where a public utility satisfies a complaint against itwithin the time specified therefor or extended by the

Initiation ofproceedings byCommission.

Fixing ofhearing.

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Commission, the complaint shall be dismissed by theCommission.

(2) Where the public utility does not satisfy the complaintwithin the time specified therefor or extended bythe Commission, and it appears to the Commissionfrom a consideration of the complaint and answerthereto, or otherwise, the Commission shall fix a date,time and place for investigation and hearing of thematter.

(3) Notwithstanding anything contained in this section,where it appears to the Commission that a complaintis frivolous or unduly delayed, the Commission mayreject the complaint.

58. Subject to the confidentiality restrictions contained in section 83(5), all hearings before the Commission shallbe public and theparties to the proceedings shall be entitled to be heard in personor by counsel.

59. (1) After the conclusion of the hearing, the Commissionshall make an order in writing which shall state thetime within which the order is to be complied with.

(2) The decision of a majority of the then membership ofthe Commission (without taking into account anyvacancy) shall be the decision of the Commission, butany member not agreeing with the majority mayrecord his views.

(3) The Chairman or, in the absence or inability to act theChairman, the person elected in accordance withsection 8 (2), shall preside at he meetings of theCommission; when so presiding, the Chairman or theperson elected as aforeside, as the case may be, shall,where there is an equality of votes, have an originaland a casting vote.

Hearings to bepublic.

Decision ofCommission.

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(4) An order under subsection (1) may deal also with anyincidental matter that has arisen in the proceedingsbefore the Commission.

(5) A certified copy of the order shall be served upon thepublic utility against which it is made, and noticethereof shall be given to the other parties to theproceedings.

60. The Commission shall have power to subpoena witnesses, toadminister oaths, to examine witnesses, to compel theproduction of such books, records, documents and otherrecords as it may deem necessary or proper for anyproceeding, investigation or hearing held by it, to inspect anypremises, buildings, machinery, equipment or facility owned,occupied or used by any public utility, and to do all othernecessary and proper acts in the lawful exercise of its powersor the performance of its duties.

61. Notice of all hearings, investigations and proceedings beforethe Commission shall be given in such form and manner as theCommission may prescribe by rules.

62. Where any dispute arises as to whether any agreement of thenature referred to in Parts V. VI, VII, or VIII has been enteredinto between the Government and a public utility or between theGovernment and an investor in relation to the privatisation orcapitalisation of the public utility or as to the terms of the

agreement, a certificate under the signature of the Ministerstating that any such agreement has been entered into and theterms of the agreement shall be admitted by the Commission asevidence of the facts stated therein.

63. The Commission shall keep a full and complete record of itsproceedings and of any investigation by it or on its behalf.

Oathsandsubpoena.

Notice.

Proof ofagreement.

Records ofproceedings.

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PART XIFUNDING OF THE COMMISSION AND COSTS

64. (1) The annual budget of the Commission, as approved bythe National Assembly, shall be funded by an annualassessment by the Commission upon the publicutilities under its jurisdiction.

(2) The annual assessment imposed pursuant tosubsection (1) shall not exceed -

(a) one per cent of the gross revenue derivedfrom services, or twenty-five million dollars,whichever is less, in the case of any publicutility referrd to in section 4 (1) (a);

(b) one per cent of the gross revenue derivedfrom services in the case of any public utilityreferred to insection 4 (1) (b);and

(c) in the case of any other public utility under thejurisdiction of the Commission, such amountas the Minister may by order, which shall besubject to negative resolution of the NationalAssembly, prescribe.

(3) The Commission shall, on the basis of the budget thatit shall submit to the Ministry of Finance pursuant tosection 20 and no later than forty-five days before thebeginning of the financial year to which such budgetrelates, determine and notify each public utility underits jurisdiction of the annual assessment upon suchpublic utility and of the annual assessment uponeach other public utility under the Commission’sjurisdiction.

(4) A public utility shall pay over to the Commission theannual assessment made pursuant to this section in

AnnualAssessmentupon publicutilities.

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two equal installments on the fifteenth day of Januaryand on the fifteenth day of July in each year, and thefirst installment shall be paid irrespective of the dateon which the National Assembly approves thenational budget, save that such payment shall beadjusted if necessary based on the amount of the firstinstallment approved by the National Assembly.

(5) On or before the thirty-first day of March in each year,the Commission shall prepare and make available toeach public utility, to the public, and to the Minister anaccounting of the funding received pursuant to thissection and the use or other disposition of suchfunding.

(6) For purposes of this section, “ gross revenue derivedfrom services” means the gross revenue derived inthe most recently-ended financial year of a publicutility.

65. (1) To the extent not defrayed from the resources of theCommission obtained pursuant to Part IV and section64, the expenses incurred by the Commission, anddetermined and assessed by it, in connection with anyinvestigation or proceeding under this Act involvingany public utility, and all expenses of any litigation(including appeals) arising from any suchinvestigation, or any valuation, revaluation orproceedings, or from any order or action of theCommission, shall be borne by the public utilityinvestigated or proceeded against, and upon theCommission’s presentation of itemized statementssupported by receipts, where such receipts are issued,shall be paid by the public utility to the Commissionwithin such time as may be specified by theCommission:

Provided that the amount so determined andassessed to any one-public utility in any one year

Costs ofinvestigation orproceeding.

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by the Commission shall not exceed -

(a) in respect of any proceedings relating torate -

(i) one half of the one per cent, ortwenty million dollars, which ever isless, in the case of any public utilityreferred to in section 4 (1) (a);

(ii) one-half of one per cent in the caseof any public utility referred to insection 4 (1) (a);

(iii) in the case of any other public utilityunder the jurisdiction of theCommission, such amount as theMinister may by order, which shallbe subject to negative resolution ofthe National Assembly, prescribe;

(b) in respect of all investigations -

(i) one-tenth of one per cent, or fifteenmillion dollars, whichever is less, inthe case of any public utilityreferred to in section 4 (1) (a);

(ii) one-tenth of one per cent in thecase of any public utility referred toin section 4 (1) (b);and

(iii) in the case of any other public utilityunder the jurisdiction of theCommission, such amount as theMinister may by order, which shallbe subject to negative resolution ofthe National Assembly, prescribe,

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of its gross revenues derived from services orsuch other sum as may be specified in, ordetermined in accordance with any other writtenlaw, a licence held by the public utility or anagreement between the Government and thepublic utility, or between the Government and aninvestor in relation to a privatisation orcapitalisation of the public utility.

(2) The amount determined and assessed to the publicutility and paid by it under subsection (1), and one-halfof the amount determined and assessed to a publicutility and paid by it under section 64, shall be takeninto account in determining its operating casts for thepurposes of this Act.

(3) The costs of, and incidental to, any proceedings beforethe Commission incurred by the parties thereto shallbe in the discretion of the Commission and theCommission may make an appropriate order inrespect thereof while deciding the matter arising in theproceedings.

(4) To the extent not defrayed from the resources of theCommission obtained pursuant to this section andsections 20 (3) and 64, the annual budget of theCommission, as approved by the National Assembly,shall be funded by sums provided to the Commissionby or under an annual appropriation by the NationalAssembly.

PART XIIENFORCEMENT OF ORDERS

66. (1) On the application of any party to any proceedingsbefore the Commission and the production of acertified copy of the order of the Commission in such

Execution ororder.

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proceedings, the High Court may execute the ordersas if it were an order made by it.

(2) This section is without prejudice to any other provisionof this Part.

67. A public utility to which an order relating to rate applies shallmake such changes in the tariffs filed by it as may be necessaryto make the same conform to the order and thereafter nochange shall be made in the tariffs so filed except in accordancewith the provisions of this Act.

68. (1) Except as otherwise provided in the terms of alicence granted to a public utility or any written law,where an order made by the Commission in respect ofa public utility (not being an order fixing rate or for thepayment of any sum of money) has not in any materialparticular and without lawful excuse, been compiledwith within a reasonable time to be stated therein forcompliance, the Commission may take such steps andemploy such persons as may be necessary for theenforcement of such order, and for that purpose may-

(a) forcibly or otherwise enter upon, seize andtake possession of the whole or any part ofthe movable or immovable property of thepublic utility, toghether with the books,documents and offices of the public utility;and

(b) until the order has been enforced, assumeand take over the management of thebusiness of the public utility for and in theinterests of the owner or owners of the publicutility, its creditors and the consumers.

(2) During the period when the Commission manages thebusiness of a public utility under subsection (1), theCommission may exercise all or any of the powers,duties and rights of the owner or owners or directors

Compliancewith order inproceedingsrelating to rate.

Enforcementof order bytaking overmanagement ofbusiness ofpublic utility.

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of the public utility, and of its officers, in all respects,including the employment and dismissal of officersand employees of the public utility:

Provided that the Commission shall notremain in possession of the property or managethe business of the public utility or any part thereoffor a period in excess of six months unless withinthat period it proceeds against the public utilityunder section 69.

(3) Upon the Commission so taking possession of theproperty and business of any public utility, everyofficer and employee of the public utility shall obeythe orders of the Commission and of any personplaced by the Commission in authority in themanagement of any department ot the business of thepublic utility.

(4) The Commission, upon taking possession of theproperty and taking over the management of thebusiness of the public utility, may determine, receiveand pay out all moneys due to or owing by the publicutility and give cheques, acquittances and receipts formoneys to the same extent and with like effect as theproper officers of the public utility could do ifpossession of the property had not been taken ormanagement of the business had not been taken over.

(5) The costs incurred by the Commission for anypurpose referred to in this section shall be in thediscretion of the Commission, and the Commissionmay order by whom and in what amount or proportionsuch costs, as determined and assessed by theCommission, shall be paid to the Commission.

69. (1) Where a public utility, which is a company, has failedor refused in respect of any material particular andwithout lawful excuse, to comply with an order made

Dissolusion ofpublic utility indefault.

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by the Commission within a reasonable time to bestated therein for compliance and the Commission isof the opinion that no effectual means exist forcompelling the public utility to comply with the order,the Commission shall transmit to the Minister acertificate signed by the chairman setting forth thenature of the order and the default of the public utilityin respect thereof, and such certificate shall bepublished in the Gazette and the newspaper havingcirculation in Guyana.

(2) Except as otherwise provided in the terms of a licencegranted to a public utility or any written law, uponpublication of the certificate, the Commission mayapply to the High Court to have the public utility woundup and the High Court shall deal with the applicationas if, for the purposes of the Companies Act 1991,failure or refusal by a company to comply with anorder made by the Commission were a ground forwinding up the company by the High Court.

(3) In this section “company” has the same meaning as inthe Companies Act 1991.

PART XIIIOFFENCES AND PENALTIES

70. Every public utility which in respect of any material particularwithout lawful excuse fails or refuses to obey an order of theCommission shall be liable on summary conviction to a fine notexceeding one million dollars.

71. Every public utility which in respect of any material particularand without lawful excuse fails or refuses -

(a) to prepare and furnish to the Commission within thetime, in the manner and form, and with particulars andverifications, specified by or under this Act, any return

Disobedience oforder ofCommission.

Failure ofpublic utility tofurnishinformation.

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or information -(i) required to be furnished by or under this Act; or(ii) directed to be furnished by the Commission for

the purpose of the exercise or discharge of any ofits functions; or

(b) to answer any reasonable question relevant to anymatter which is the subject of any proceedings beforethe Commission or investigation by the Commission,

shall be liable on summary conviction to a fine not exceedingone million dollars.

72. Every public utility which wilfully makes any return or furnishesany information to the Commission, which is false in anymaterial particular, shall be liable on summary conviction, to afine not exceeding one million dollars.

73. Where the Commission at any time, by notice served on anypublic utility, directs it to furnish to the Commission any returnor information, which the public utility may be required tofurnish and the public utility willfully refuses or fails to furnishthe return or information to the best of its knowledge or meansof knowledge, in the manner directed by the Commission at orwithin the time stated in the notice, the public utility shall beliable on summary conviction to a fine not exceeding fivehundred thousand dollars.

74. Every person, who obstructs or interferes with any member,officer or other person employed by the Commission in theexercise of the rights conferred or duties imposed by or underthis Act, shall be liable on summary conviction to a fine notexceeding one million dollars.

75. Every public utility, or officer, employee or agent of a publicutility, guilty of the contravention of any provision of this Act(including rules or regulations made thereunder) for which nopenalty has been prescribed by any other provision of this Act,shall be liable on summary conviction to a fine not exceeding

Making orfurnishing falsereturn orinformation.

Wilful defaultby employee,etc. of publicutility infurnishinginformation.

Obstruction of,or interferancewith members,officers, etc. ofCommission indischarge ofduties.

Penalty forother offences.

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one million dollars.

76. For the purposes of this Act, where an offence continues afterthere has been a conviction, it shall be deemed to be a separateand distinct offence committed each day on which the offencecontinues.

PART XIVREVIEW AND APPEAL

77. The Commission may suspend, review, vary or rescind anydecision or order made by it and, where under this Act a hearingis required before any decision or order is made, such decisionsor order shall not be suspended, varied or rescinded withoutgiving the parties affected by the decision or order a reasonableopportunity of being heard.

78. (1) An appeal shall lie to the Court of Appeal from anyfinal decision or order of the Commission.

(2) The party proposing to appeal shall give to theCommission and to the party or parties in whosefavour the decision or order has been given, a noticeof appeal within fourteen days of the decision or orderof the Commission.

(3) The appellant, the Commission and the party orparties in whose favour the decision or order of theCommission was given shall be entitled to be heard bycounsel upon the hearing of the appeal.

(4) the Chancellor may appoint not more than twopersons (hereinafter in this section referred to asassessors) who, in his opinion, are qualified by reasonof their knowledge and experience in respect ofmatters relevant to the appeal, to assist the Court ofAppeal, at the hearing of the appeal, in determiningany question of fact arising in the appeal.

Penalty in thecase ofcontinuingoffence.

Suspension orreview byCommission ofits owndecisions ororder.

Appeal andother proceed-ings.

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(5) The assessors shall be paid such allowances as maybe determined by rules of court or, in the absence ofrules of court in regard to this matter, as may bedetermined by the Chancellor.

(6) All costs incidental to the hearing of the appeal(including the fees payable to the assessors) shall beat the discretion of the Court of Appeal.

(7) Where in respect of proceedings before theCommission a party makes an application to the HighCourt for an order of mandamus, prohibition orcertiorari or for a declaration of any other suchapplication, the High Court shall, notwithstandinganything in any other written law, as expeditiously aspossible and in any case no later than seventy days ofthe commencement of the hearing of the application,given its decision thereon; and the court shalldetermine such procedure as would facilitate therendering of the decision within the stipulated time soas not to frustrate the work of the Commission.

79. No appeal shall of itself stay or suspend the operation of anydecision or order of the Commission against which the appealhas been filed, but the Court of Appeal may stay or suspend,in whole or in part, the operation of the decision or order of theCommission during the pendency of the appeal, upon suchterms and conditions (including the furnishing of security) asthat court may think fit.

80. On the hearing of the appeal and the determination of thequestion involved in the appeal, a certified copy of the decisionof the Court of Appeal shall be forwarded to the Commissionand thereupon the Commission shall make an order inaccordance with that decision.

81. (1) The Commission may, upon the application of anyparty to any proceedings before it, or on its ownmotion, state a case in writing for the opinion of the

Stay ofproceedingspending appeal.

Determinationof question byCourt ofAppeal.

Case statedupon questionof Law.

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Court of Appeal upon any question which, in theopinion of the Commission, is a question of law arisingin the proceedings.

(2) The Court of Appeal shall hear and determine thequestion of law stated for its opinion by theCommission and shall remit the matter to theCommission with the opinion of the Court of Appealthereon, which opinion shall be binding on theCommission and all the parties to the proceedings.

PART XVMISCELLANEOUS

82. It shall be the duty of every public utility to co-operate with theCommission and its officers, employees and agents in theperformance of their functions and for that purpose to complywith all lawful requests made, or directions or instructionsgiven, by the Commission or its officers, employees or agents.

83. (1) The Commission may by order require a public utilityto furnish periodically at such intervals as may bespecified by the Commission, and at such other timesas the Commission may require, a detailed report offinances and operations in such form and containingsuch particulars and verified in such manner as theCommission may specify, including accounts, reportsor other information which show in itemized detail -

(a) depreciation;

(b) salaries and wages;

(c) legal expenses;

(d) taxes and rentals;

(e) the quantity and value of material used;

Duty of publicutility to co-operate withCommission.

Duty of publicutility tofurnishinformationand returns.

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(f) receipts from residuals, by-products,services or other sales;

(g) total and net cost;

(h) gross and net profits;

(i) dividends and interests;

(j) surplus or reserve;

(k) prices paid by consumers;

(l) any other information whether or not similarto the information under paragraphs (a) to(k),

and the public utility shall comply with the request.

(2) Upon reasonable notice by the Commission,every public utility shall furnish to the Commission allinformation required by it and shall make specific andcomplete answers to all questions submitted by hteCommission.

(3) All the records, including records stored by means ofelectronic equipment, relating to the operations andbusiness of the public utility shall be kept as itsprincipal place of business, or other places ofbusiness, in Guyana.

(4) Whenever required by the Commission and uponreasonable notice to the public utility, a public utilityshall deliver to the Commission all contracts, reportsof engineers, documents, books, accounts and otherrecords in the possession or control of the public utilityand in any way relating to its property or service oraffecting its business, or copies of the same verified insuch manner as the Commission may specify.

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(5) All information and documents provided to theCommission under this Act shall be publicly available:

Provided that the Commission shall take alldue and reasonable care to protect and shall notpublish or otherwise make publicly available thetrade secrets of the public utility, third partyconfidential information, or any other information thatmay aid a competitor of the public utility.

84. (1) The Commission may, for the purposes of carrying outits functions authorised under this Act and subject tosection 21 (2), order the ascertainment by appraisal ofthe value of the property of any public utility and in thatconnection may enquire into every fact which, in itsjudgement, has any bearing on that value, including theamount of money actually and reasonably expended inthat undertaking in order to provide servicereasonably adequate to the requirements of the publicserved by the public utility.

(2) All expenses in connection with any appraisal orderedby the Commission, including all expenses incurred inconnection therewith by the public utility whoseproperty is the subject of the appraisal, may, where theCommission so directs, be charged to the capitalaccount and added to the rate based of the publicutility.

85. (1) The Commission shall, on or before the thirty-first dayof March in each calendar year, make to the Ministera report in respect of the preceding calendar yearstating briefly -

(a) all applications and complaints o theCommission under this Act, and summariesof the findings of the Commission thereon;

Ascertainmentof value ofproperty ofpublic utility.

Annual Report.

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(b) summaries of the findings of the Commissionin regard to any matter in respect of whichthe Commission has acted on its own motion;

(c) such other matters as may appear to theCommission to be of public interest inconnection with public utilities;

(d) an accounting of the funds received by theCommission and the Commission’s use orother disposition of such funds, in such formand in such detail as the Minister mayprescribe; and

(e) such other matters as the Minister mayprescribe by regulations.

(2) A copy of every report under subsection (1) shall be laidbefore the National Assembly by the Minister.

86. A copy of any order or other document in the custody of theSecretary of the Commission, certified by the Secretary to bea true copy and sealed with the seal of the Commission, shallbe evidence of the order or other document.

87. Subject to any written law, any licence or any agreementbetween the Government and a public utility, or between theGovernment and an investor, in relation to the privatisation orcapitalisation of the public utility, the Commission may makerules in respect of all or any of the following matters -

(a) the procedure of the Commission,

(b) the rates that may be demanded and received bypublic utilities from consumers and any matter to betaken into account in fixing the rate for any serviceprovided by a public utility;

(c) the form and manner of keeping and rendering books,

Evidence ofdocuments.

Power ofCommission tomake rules.

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accounts and other records by public utilities and thematters that the annual report of a public utility shouldspecify;

(d) the form of application by a consumer for receiptof interest on cash deposit;

(e) the form of any complaint under this Act;

(f) the form and manner of giving any notice by theCommission;

(g) the time, form and manner of furnishing totheCommission any return or information by a publicutility, the particulars to be contained in it and theverification thereof;

(h) the fees payable in respect of matters within thejurisdiction of the Commission;

(i) the particulars that a development and expansionprogramme submitted by a public utility for theapproval of the Commission should contain;

(j) any other matter that is required to be, or may be,prescribed by the Commission by rules for carryingout the purposes of the Act.

88. The Minister may make such regulations as are necessary forcarrying out the purposes of this Act.

89. The Public Utilities Commission Act 1990 and the PublicUtilities Commission Act 1997 are hereby repealed.

90. (1) Notwithstanding the repeal of the Public UtilitiesCommission Act 1990 by section 89, the PublicUtilities Commission constituted under section 5 of thesaid Act shall, for such time as the Minister deemsnecessary, continue to function as such on and after

Power of theMinister tomake regula-tions.

RepealNo. 26 of1990.No. 29 of1997.

Transitionalprovisions.No. 26 of1990.

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the coming into operation of this Act, as though thechairman and other members were appointed undersection 5 of this Act, and shall have and discharge allthe powers vested in it under this Act, and in respectof all pending -

(i) matters engaging the attention of theCommission;

(ii) complaints before the Commission;

(iii) appeals by or against the Commission;

(iv) proceedings in the Cout of Appeal or theHigh Court in which the Commission is aparty,

on the day immediately preceding the coming into operation ofthis Act, shall have and discharge all the powers vested in itunder the Public Utilities Commission Act 1990, and that Actshall stand unrepealed to the extent necessary to facilitate thedischarge of the functions of the Commission in respect of theaforesaid matters, compalints, appeals and proceedings.

(2) The assets and liabilities of the Commissionconstituted under the Public Utilities Commission Act1990 shall be transferred, with effect from the cominginto operation of this Act, to the Commissionconstituted under this Act.

(3) All contracts, deeds, bonds, overdrafts, guarantees,agreements or other instruments or other documents,which were subsisting immediately before the cominginto operation of this Act, and relating to the assets andliabilities of the Public Utilities Commissionconstituted under the Public Utilities Commission Act1990, shall be of full force and effect against or infavour of the Public Utilities Commission constitutedunder this Act and be enforceable as fully and

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effectually as if, instead of the Public UtilitiesCommission constituted under the Public UtilitiesCommission Act 1990, the Public UtilitiesCommission constitited under this Act had beennamed therein or had been a party thereto.

(4) All actions or other proceedings commenced beforethe coming into operation of this Act, for theenforcement of any right relating to any asset orliability which is transferred by this Act to thePublic Utilities Commission constituted under thisAct, and to which the Public Utilities Commissionconstituted under the Public Utilities CommissionAct 1990 is a party, may be continued by oragainst the Public Utilities Commission constitutedunder this Act, and such actions or otherproceedings may be amended accordingly.

(5) Notwithstanding anything contained in this Act or anyother written law or agreement, the appointments ofall the officers and employees employed by the PublicUtilities Commission constituted under the PublicUtilities Commission Act 1990 immediately before thecoming into operation of the Act, shall be continued inthe employemnt of the Public Utilities Commissionconstituted under this Act.

Passed by the National Assembly on 29th July, 1999.

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Documents

CHAPTER 25:01 PUBLIC UTILITIES COMMISSION ACT … Act 1999.pdf · · 2011-04-29LAWS OF GUYANA Public Utilities Commission Cap. 25:01 L.R.O. 3/1998 1 ... pay telephone service providers,