Independent senator says Utilities Regulation (Amendment) Bill unnecessary

Independent Senator Andrew Mallalieu wants a rethink of the changes to the island’s utilities legislation which he believes has given unnecessary powers of exemption to a minister acting “in the public’s interest”.

He fears that in the case of utility regulation, this could remove some decision-making from the Fair Trading Commission (FTC).

Added to this, he said, there is no explanation for what is meant by the term “in the public interest”. 

Mallalieu’s comments came on Wednesday on the floor of the Senate where the Utilities Regulation (Amendment) Bill, 2023 was being debated.

The businessman told the Chamber that while he trusted Prime Minister Mia Mottley as well as Energy Minister Senator Lisa Cummins who led the discussion on the amendment, he had a “material point of departure” regarding the move to make a specific change to the legislation.

Quoting Cummins who had earlier said that the amendment was essentially the same as Clause 4 and Paragraph 3 of the legislation, Senator Mallalieu said: “I want to disagree completely with that. The essence of this legislation is completely different to paragraphs one and paragraphs three and I was not a member of this Chamber when Clause four was passed which was a material departure from what was there before.”

Mallalieu said specific provisions in the Fair Trading Act allowed for exemptions by the minister in two circumstances – “where the minister is satisfied that the exemption is required in the public interest”, making way for his/her intervention and an over-ruling of the commission.

The senator said that in the original legislation, the FTC’s role as a proxy in the absence of a competitive environment was clear.

“As soon as you have a competitive environment there is no need for the FTC. The market forces will determine,” he said.

Applauding Barbados’ general advancements in the renewable energy sector, Senator Mallalieu said this is not a justification to give a substantive minister powers to do what did not exist before.

Agreeing with the government’s attempts to “unlock the gridlock” relating to solar energy storage, he insisted that the amendment was not needed.

Mallalieu, who has had business interests in the installation of photovoltaic systems and investment in the sector, said his concern with the legislation was that while he believed the authorities were doing the right thing, the clause applies “in perpetuity” until it is removed. 

“If we pass this today, any minister deciding that it is in the public interest, may simply take it outside the FTC and make a decision. I don’t think that is a good thing,” he cautioned. 

(SP)