BANGO FTC written submission on Price Cap Mechanism Review

Prepared by Roosevelt King and Chris Halsall

The application of the PCM [in Barbados] of the PCM, including assigned values to the formula and the incentives in the baskets, is a mystery to the exercise of regulatory authority.

It would seem that there is a deliberate attempt by the [Fair Trading Commission] to favor the company in its approach to the functioning of the PCM as a regulatory mechanism at the level of policy, because the PCM parameters have been set contrary to all the statutory provisions for exercising regulatory authority.

In any forum this level of ineffectiveness, and failure to consider the costs to the consumer in setting the rates, could naturally be described as a gross dereliction of duty; total incompetence.  What makes this case different is that we know from experience that we are dealing with highly qualified professionals who are in possession of the facts and who know the rigours of regulation.

It is because of this that BANGO is of the view that there are other factors, players or circumstances which have not come to public light, that is being allowed to manipulate the regulatory function of the FTC.

There is no doubt that the PCM can be applied to maintain the integrity of the regulatory environment but its performance over this initial period does not reflect this because of inputs incorrectly defined by the FTC.  Under the circumstances, it would seem that the FTC should apologies to consumers for its lack of enforcement of its regulatory function in the use of the PCM.

The full report is available (in PDF format) for download…

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