FTC issues decision on the Price Cap Plan 2016
THE FAIR TRADING Commission issued its Decision on the Price Cap Plan 2016 (PCP 2016) on March 31. The PCP 2016, which came into effect on April 1, will govern the adjustment of rates of the regulated telecommunications services of Cable & Wireless (Barbados) Limited (C&W) over the next three years, and will apply to all customers of C&W, including those acquired as part of the acquisition of Columbus Telecommunications.
The structure of the PCP 2016 will be based on two service baskets – Basket 1 for “competitive” services and Basket 2 for “non-competitive” services. In view of the importance of residential access services to customers, a sub-cap with similar conditions to those imposed on Basket 2 has been placed on fixed line services.
While competitive services will not be subject to an overall price cap, advance notification requirements will be set out in the forthcoming Price Cap Compliance Rules and Procedures 2016. The overall price increase in the non-competitive basket will be below or equal to the level of inflation, or three per cent per year, if inflation exceeds three per cent during that year. In the case of negative inflation, the allowable overall price increase will be zero for that year.
Copies of the Decision, which provides full details of the Price Cap Plan 2016, may be accessed online at www.ftc.gov.bb or obtained from the Fair Trading Commission, Good Hope, Green Hill, St. Michael, Monday to Friday, between 9 a.m. and 4 p.m. (BGIS)