URCA seeking to reduce operating budget in 2021

Due to governmental budgetary cuts, the Utilities Regulation and Competition Authority (URCA) is seeking to decrease its operating budget for 2021 by approximately 5 percent compared to 2020, via a 98 percent cut in travel expenses.

URCA’s total operating budget recovered through fees was $6.5 million this year and the regulator is proposing to cut that to $6.2 million in 2021, despite an increase in staff.

“In 2020 URCA’s staff grew by one to 30… In 2021 URCA is seeking to achieve a further 23 percent increase in its staff complement, growing from 30 to 37 staff. As a result, URCA’s staff costs are projected to increase by 6 percent, reflecting continued efforts to adequately staff the organization in order to ensure that the sectors are properly regulated,” the regulator stated in its just published 2020 annual plan, which highlights areas of priority for 2021 and the organization’s 2021 budget.

“Budgeted spending on professional services in 2021 will increase by 3 percent year over year whilst remaining steady at 14 percent of the total operating expenses. These expenses will be driven predominantly by regulatory projects, including scheduled surveys and market reviews; and litigation expected to be before the court for trial during 2021.

“Spending on conferences, training and travel will decrease significantly by 98 percent… notwithstanding renewed regulatory monitoring across The Bahamas and the implementation of pop-up offices during late 2021 in specified Family Islands. Consumer education and public relations expenditure will increase by 15 percent due to increased efforts to educate the consumer through an increased digital presence and other new marketing and media initiatives.”

Admitting that its strategic focus for 2020 was partially diverted to respond to COVID-19 and a change in leadership within the organization, URCA stated it remains focused on three major initiatives heading into 2021, including the implementation of URCA’s organizational performance indexes, the development and implementation of its learning and development framework and curriculum, and the implementation of URCA’s culture renewal process.

“These priority objectives remain critical to the continued evolution of the organization into a progressive, highly skilled and efficiently responsive regulator that is cognizant of the needs of its stakeholders,” the regulator stated.

“URCA recognizes and appreciates that its people are its most valuable resource. Investment in their intentional development will position the organization to significantly improve its employee recruitment and retention capability, resulting in the creation of career regulators and ultimately introduce a succession plan that facilitates sustainable, organizational growth.”

URCA noted that the pandemic also provided an opportunity for its keys stakeholders and the public to assess its regulatory impact in the electronic communications sector (ECS) and the electricity sector (ES) in times of national and global crises.

“URCA recognizes that investment in new and emerging technologies, influenced by the rapidly evolving digital global society, does not only require visionary and strategic industry leadership to ensure the continued growth and expansion of the sectors, but a regulatory regime with the agility to respond and adapt to the ever-changing national and international societal demands,” the regulator pointed out.

“The pandemic created opportunities for a major societal paradigm shift, from the normal operations to technology-based platforms. Information and communications technologies (ICTs) facilitated the establishment of the new virtual environment that embraced the full spectrum of online communications applications, platforms and methodologies required to sustain business operations and social interactions.”

Projects that will rollover from 2020 into 2021 include the development of a framework for public service broadcasting, the completion of comprehensive ECS market surveys, a review of mobile services and a review of fixed services including Pay TV.

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source https://thenassauguardian.com/urca-seeking-to-reduce-operating-budget-in-2021/