The government could save $250,000 a year if it merged its utilities regulatory bodies, according to the consultant’s report from Ernst & Young.
The report suggests the government create a utilities commission by merging the Information and Communications Technology Authority, the Electricity Regulatory Authority and the Water Authority.
“Currently, there are a number of bodies that ‘regulate’ or licence public utilities, in their broadest sense. Each of these offices is located in separate premises, with separate regulatory functions and supporting administration,” the report said.
“Merging the ICTA, ERA and Water Authority regulatory functions could save $250,000 a year. However, the real benefits are in the sharing of regulatory best practices, systems and resources, creating flexibility and efficiency.”
The report recommends combining the three to create a “smaller jurisdiction.”
“This is not purely an administrative centralization, this involves changes to the relevant legislation to give powers to a Utilities Commission,” the report states.
Implications could involve issues with determining leadership roles and would require changes to the ICTA Law 2002, the ERA Law 2005 and the Water Authority Law.
Currently, the ICTA has eight employees, the Water Authority has 12, and the ERA has three.
Benefits outlined in the report include a reduction in the number of employees and estimated savings in employee wages of up to $150,000 per year,
“There are likely to be property savings by combining offices in the order of $100,00 per annum. Therefore, a relatively low level of financial cost savings would be achieved,” according to the report.
The report says that smaller jurisdictions and states within countries have tendered to merge regulatory functions, while larger national jurisdictions have separated electricity, telecommunications and other regulatory bodies.
It also suggests benefits would remove the conflict of interest where the Water Authority delivers services and self-regulates; reduces duplication of systems resources and effort; and would offer potential for sharing best practices.
It would also “maximize flexibility and reallocation of resources and allows for future regulatory development,” the report states.
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