THE Office of Utilities Regulation (OUR) is now in mourning following the death, on December 5, of its first Director General Winston Hay, who is regarded by many as the architect of utilities regulation in Jamaica.

He was 91 years old.

Hay, who was appointed in 1996, oversaw the official opening of the OUR on January 6, 1997, the chartering of its organisational infrastructure, and the interpretation of its mandate.

During his six-year stint, he presided over a host of milestone utilities regulatory activities and decisions which contributed to establishing Jamaica as the model for utilities regulation best practice.

Under Hay’s direction, the OUR’s powers in regulating the utility sectors were expanded through an amendment to the OUR Act in 2000 to include the addition of transmission and generation of electricity as a prescribed utility service.

This enabled the OUR to give directions to and require remedial measures by regulated entities for, among other requirements, the protection of consumer interests and encouragement of competition.

Hay grabbed the media headlines in 2002 when he led the OUR in instituting legal action against then Minister of Commerce, Science, and Technology Phillip Paulwell. He had challenged Paulwell’s authority to give a direction to the OUR, which he considered to be ultra vires.

The OUR’s position was subsequently upheld by the Privy Council in a judgment that cited the position taken by him with clear approval. This frequently cited judgment is regarded as a landmark ruling on the independence of the utility regulator.

Among other notable and path-breaking accomplishments for Hay was the introduction of guaranteed service standards for the National Water Commission (NWC) and the Jamaica Public Service Company Limited (JPS), which saw the establishment of customer compensation for service quality failings.

Hay also oversaw the regulatory activities involved in the liberalisation of the telecommunications sector. This included, but was not limited to, issuing the first invitation in August 2000 for telecommunications licences, consulting on, and declaring a carrier or service provider dominant, and introducing a price cap regime applicable to Cable & Wireless Jamaica’s (now FLOW) fixed line service.

The regime incorporated a plan for timely rebalancing of some basic services, including residential and business customers’ line rental.

In both the electricity and water sectors, Hay’s tenure was impactful. Within electricity, he saw the beginning of the initiative to introduce private participation and made critical input into JPS’s privatisation and its subsequent regulation as a privately-owned, fully integrated single-buyer electricity operator.

His support of private sector participation within the power sector led to OUR’s first review of a Power Purchase Agreement.

Within the water sector, his leadership demonstrated that a publicly-owned monopoly such as the NWC could be subject to independent regulation. He also introduced private participation in the water and sewerage utilities sectors with at least two such entities applying for licences under his watch.

Following his retirement in 2002, Hay served in various advisory capacities to the Government and practised as an independent consultant advising governments and regulators across the world, including in Dominica, Gambia, Guyana, and the Cayman Islands. Among his final public acts was to provide expert advice to Jamaica’s Electricity Sector Enterprise Team.

In reacting to the passing of Hay, OUR’s Director General Ansord Hewitt said: “Winston was, for many of us — including me — a great mentor, a humble intellectual giant, the epitome of integrity and a patriot. Those of us who benefited from his tutelage and guidance can attest to his contribution to our growth and development.

“I can say of him that while he took his obligations to Jamaica seriously, he never took himself seriously. The country owes him a debt of gratitude that I am not convinced has ever been fittingly paid. To his family, the OUR expresses its deepest condolence. Please know that he made a significant mark in enhancing the development of his country.”