FAIR TRADING COMMISSION Notes to the Financial Statements Year ended 31 March 2017 4. Cash and time deposits Cash comprises an operating account which bore interest at 0.025% (2016 - 0.05%) per annum. As at 10 December 2016 the bank no longer pays interest on this account. Time deposits bear interest at the rate of 0.25% per annum (2016 - 0.8%). The deposits are due to mature on 24 November 2017 and 14 February 2018 respectively. 5. Receivables 2017 2016 Utility service providers 1,113,167 943,251 Car loans receivable 3,300 Other receivables 1,438 Government of Barbados 132,998 Costs - Barbados National Oil Company Limited case 100,000 Merger fees 20,000 1,117,905 1,196,249 Utility service provider levies are based upon the costs incurred to regulate utility services. The levy comprises the annual year-end assessment and special assessments to meet public hearing costs. There are no impaired amounts as at 31 March 2017 and 2016. 43
FAIR TRADING COMMISSION Notes to the Financial Statements Year ended 31 March 2017 6. Property, equipment and software Office Computer equip- Leasehold hardware ment & improvements & software fixtures Vehicles Total Cost Balance - 1 April 2015 819,570 230,811 200,454 72,250 1,323,085 Additions 20,972 5,022 182,088 208,082 Disposals (17,379) (5,785) - (23,164) Balance -31 March 2016 819,570 234,404 199,691 254,338 1,508,003 Additions 66,982 1,216 - 68,198 Disposals (13,655) (2,686) - (16,341) Balance -31 March 2017 819,570 287,731 198,221 254,338 1,559,860 Accumulated depreciation Balance - 1 April 2015 573,699 204,328 195,511 59,007 1,032,545 Charge for the year 81,957 31,455 2,719 25,385 141,516 Disposals (17,379) (5,785) - (23,164) Balance - 31 March 2016 655,656 218,404 192,445 84,392 1,150,897 Charge for the year 81,957 25,682 3,022 36,418 147,079 Disposals (13,655) (2,182) - (15,837) Balance -31 March 2017 737,613 230,431 193,285 120,810 1,282,139 Net book value 31 March 2017 81,957 57,300 4,936 133,528 277,721 31 March 2016 163,914 16,000 7,246 169,946 357,106 44
FAIR TRADING COMMISSION Notes to the Financial Statements Year ended 31 March 2017 7. Deferred income 2017 2016 Deferred income — beginning of year 193,189 44,666 Add: Grants for assets purchased during the year 68,198 208,082 Less: Amortization of deferred income for the year (65,122) (59,559) Deferred income — end of year 196,265 193,189 8. Operating expenses a] Employment costs 2017 2016 Personal emoluments 1,985,803 2,041,478 National Insurance contributions 130,574 128,795 Other personal emoluments 49,020 57,390 Pensions and gratuities 112,025 120,003 Group medical 49,715 48,011 Travel 26,363 42,858 2,353,500 2,438,535 45
FAIR TRADING COMMISSION Notes to the Financial Statements Year ended 31 March 2017 8. Operating expenses (cont'd) b] Other operating expenses 2017 2016 $ $ Other operating expenses 263,684 203,072 Rental of property 499,375 492,325 Utilities 108,553 106,768 Maintenance of property 62,074 51,352 Supplies and materials 43,121 45,963 Rental of equipment 27,713 27,713 Library books and publications 19,111 14,651 Subscriptions and contributions 13,018 12,896 Bank charges 2,321 2,076 1,038,970 956,816 c] Professional services 2017 2016 $ $ Regulatory consultancies 97,796 129,718 Other professional services 64,606 27,799 Audit fees 24,675 24,675 Legal fees 1,277 187,077 183,469 46
FAIR TRADING COMMISSION Notes to the Financial Statements Year ended 31 March 2017 9. Related party transactions Transactions with related parties related to transfers from the Treasury relating to government grants of $2,462,925 (2016 - $2,468,414). Key management compensation The remuneration of members of key management personnel during the year was as follows: 2017 2016 $ $ Salaries and other short-term benefits 606,696 755,747 Gratuities 93,870 101,509 10. Lease commitments The Commission occupies premises under an operating lease which expires in 2020 with an option to renew. The estimated future lease payments under this lease are as follows: 2017 2016 $ $ Property rental: Due within 1 year 423,000 506,425 Between 2 and 5 years 846,000 1,649,700 1,269,000 2,156,125 47
FAIR TRADING COMMISSION Notes to the Financial Statements Year ended 31 March 2017 11. Financial risk management objectives and policies The Commission's financial assets comprise cash, time deposits and accounts receivable. Financial liabilities comprise accounts payable and advance deposits. Credit risk The Commission is subject to credit risk in the event of non-payment of receivable balances by utility service providers. The Commission believes that this risk is mitigated by the close monitoring of these balances and by the protection under The Fair Trading Commission Act, CAP 326B which provides legal recourse for the recovery of these balances levied on utility service providers. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial asset. The Commission does not hold any collateral security for receivables from utility service providers. Car loans are secured by bills of sale over the respective vehicles. Interest rate risk The Commission's interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair values of financial instruments. Interest rate exposure is disclosed in Note 4. The Commission has no exposure to foreign currency risks. Liquidity risk is minimal since accounts payable are due within one year. 12. Fair values The carrying values of financial assets and liabilities are a reasonable estimate of their fair values due to their short-term nature. 13. Capital management The primary objective of the Commission's capital management is to ensure that it maintains a healthy capital ratio in order to support its business. The capital structure of the Commission consists of Government grants and advances as well as levies from certain service providers which are regulated by the Commission as disclosed in the statement of changes in equity. The Commission relies on the Government of Barbados for any additional capital funding as required. 14. Comparatives Certain of prior year comparatives have been restated to conform with current year presentation. 48
Fair Trading Commission 2017 ANNUAL REPORT Appendices 49
Fair Trading Commission 2017 ANNUAL REPORT APPENDIX I Statistical Tables Appendix 1.1 – Fuel Clause Adjustment April 2016 April 2015 April 2014 April 2013 Month to March 2017 to March 2016 to March 2015 to March 2014 ¢/kWh ¢/kWh ¢/kWh ¢/kWh April 16.9458 23.7152 39.2921 43.4315 May 18.1228 25.4294 41.5426 41.5305 June 19.2970 28.5476 42.7069 41.2246 July 20.5842 24.494 44.5352 39.8415 August 19.5434 23.277 46.3592 41.7291 September 20.9516 21.2023 44.3201 40.1498 October 21.9800 23.8666 41.4619 41.1980 November 24.9911 20.3903 38.2599 41.6705 December 21.0279 19.7069 31.5076 39.0698 January 22.2866 15.7877 22.7523 37.2305 February 23.8847 13.1108 18.9513 38.4601 March 26.4981 13.1106 22.4872 37.4655 50
Fair Trading Commission 2017 ANNUAL REPORT APPENDIX I Statistical Tables (continued) Appendix 1.2 – Utility Service Complaints 2016/2017 2015/2016 Complaints Total Resolved Total Resolved C&W Service 18 1 6 47 32 C&W Billing 34 27 38 20 BL&P Service 7 4 3 2 BL&P Billing 6 4 4 4 BWA Service 1 1 5 4 BWA Billing 11 6 15 8 77 58 112 70 Appendix 1.3 – Fair Competition Investigations and Queries for the Financial Year April 2016 - March 2017 Type of Anti-Competitive Conduct On-going Closed Total Exclusive Dealing 0 0 0 Predatory Pricing 0 0 0 Refusal To Supply 0 0 0 Price Squeezing 0 0 0 Other Anti-competitive conduct 0 0 0 Mergers & Acquisitions 2 2 4 Total Domestic Inquiries 2 2 4 General Inquiries/Requests for Information 24 51
Fair Trading Commission 2017 ANNUAL REPORT APPENDIX I Statistical Tables (continued) Appendix 1.4 – Consumer Queries, April 2016 - March 2017 MONTH CALLS WALK-INS CONTACTS 2016-2017 2015-2016 2016-2017 2015-2016 2016-2017 2015-2016 April 189 175 28 22 217 197 May 178 155 27 30 205 185 June 120 186 29 25 149 211 July 161 232 36 30 197 262 August 190 227 30 31 220 258 September 53 219 7 31 60 250 October 140 199 40 29 180 228 November 130 147 24 22 154 169 December 130 175 26 25 156 200 January 130 176 26 31 156 207 February 69 174 22 32 91 206 March 159 161 18 21 177 182 TOTAL 1,649 2,226 313 329 1,962 2,555 52
Fair Trading Commission 2017 ANNUAL REPORT APPENDIX II Consultation Papers, Reports, Decisions and Orders Decisions • Decision on the BL&P Application to apply the Results and Costs of Fuel Hedging to the FCA was issued on December 29, 2016. • Decision on the Motion to Review the Renewable Energy Rider was issued on July 13, 2016. • Decision on the Price Cap Plan 2016 Compliance Rules and Procedures was issued on June 17, 2016. Consultation Papers • Public consultation on the review of BL&P Standards of Service 2014-2017 ended May 7, 2017. • Public consultation on the review of C&W Standards of Service 2014-2017 ended March 17, 2017. Commission Panels UTILITY REGULATION Telecommunications Mr. Jefferson Cumberbatch Mr. Adrian Elcock Ms. Monique Taitt Mr. Kendrid Sargeant Dr. Donley Carrington Electricity Mr. Jefferson Cumberbatch Mr. Andrew Willoughby Dr. Philmore Alleyne Mr. Dawood Pandor Ms. Monique Taitt Water Mr. Jefferson Cumberbatch Dr. Donley Carrington Mr. Kendrid Sargeant Mr. Andrew Willoughby Dr. Philmore Alleyne 53
Fair Trading Commission 2017 ANNUAL REPORT APPENDIX III Presentations at Lectures, Workshops and Seminars LECTURE March 24, 2017 Thirteenth Annual Lecture Presenter “Competition Policy and Economic Mr. John Davies Development – is there a link for Senior Vice President Small Economies?” Compass Lexecon (Paris) Accra Beach Hotel & Spa WORKSHOP March 22 & 23, 2017 Ninth Annual Competition Presenter Law and Policy Workshop Mr. Henry Su Accra Beach Hotel & Spa Attorney, Bureau of Competition, United States Federal Trade Commission November 11, 2016 Barbados Renewable Energy Presenter Association (BREA)/Central Bank Dr. Marsha Atherley-Ikechi of Barbados Sustainable Energy “Tomorrow: Renewable Energy Independence Conference and Energy Efficiency” Lloyd Erskine Sandiford Centre October 26 - 28, 2016 14th Annual Conference of OOCUR Presenter Montego Bay, Jamaica Mr. Stewart Carter “The Role of Regulation in Facilitating the Development of Information and Communications Technologies in the Caribbean” 54
Fair Trading Commission 2017 ANNUAL REPORT APPENDIX IV Commission Staff Commission Staff as at March 31, 2017 Chief Executive Officer Mrs. Sandra Sealy, BSc, MBA, MSc Director of Fair Competition Mr. Antonio Thompson BSc, MSc Director of Utility Regulation Dr. Marsha Atherley-Ikechi, BSc, MSc(UoN), MSc (UWI), PhD Director of Consumer Protection Mrs. Dava Leslie, LLB, MBA, Attorney-at-Law General Legal Counsel Mrs. Nichola George-Benjamin LLB, LLM, Attorney-at-Law Accountant Mrs. Shernell Small-Husbands, BSc, FCCA Human Resources Officer Mrs. Arlene Bushell, BSc, MSc Financial Analyst Ms. Kathyann Belle, BSc, MSc Utility Analyst – Water Ms. Fiona Scantlebury, BSc, MBA Telecommunications Analyst Mr. Stewart Carter, BSc, MSc Electricity Analyst Mr. Elvis Caddle, BSc, MSc Information Specialist Mrs. Nekaelia Hutchinson-Holder, BA, MSc Legal Officer Mr. Kevin Webster, LLB, Attorney-at-Law Consumer Protection Officer Mrs. Julia Regis, BSc Consumer Protection Officer Mrs. Wanda Crichlow-Trotman, BSc Systems Administrator Mr. Richard Farley Documentalist Ms. Heather Waithe Economist Mr. Dario Alleyne, BSc Research Officer Ms. Nikita Mayers, BSc, MSc Executive Secretary Mrs. Denese Alleyne Office Manager Ms. Teresa Douglas, CPS, ACS Assistant Accountant Mrs. Sharon Grimes-Payne Research/Administrative Assistant Ms. Cheryl Jones, ACS, BSc Administrative Assistant Ms. Cheldine Holford Administrative Assistant Ms. Saunta St. Hill Administrative Assistant Ms. Samantha Hinds Senior Clerk Ms. Sonia Spencer Help Bureau Officer Mrs. Antoinette Bridgeman Help Bureau Officer Ms. Alia Mascoll Receptionist/Typist Ms. Danielle Hope (Temp.) Office Attendant Mr. Corrie Thompson Office Helper Mrs. Cecilia Alfay AUDITORS Ernst & Young 55
Fair Trading Commission 2017 ANNUAL REPORT APPENDIX V Contact Information For further information, please contact the Fair Trading Commission at: Mailing Address: Good Hope Green Hill St. Michael BB12003 Barbados Telephone: (246) 424-0260 (246) 421-2FTC (Consumer Complaints Line) Facsimile: (246) 424-0300 E-mail: [email protected] Website: www.ftc.gov.bb Facebook: www.facebook.com/BarbadosFairTradingCommission 56
Fair Trading Commission 2017 ANNUAL REPORT Notes
Fair Trading Commission 2017 ANNUAL REPORT Notes
Good Hope, Green Hill, St. Michael Tel: (246) 424-0260 • Fax: (246) 424-0300 www.ftc.gov.bb www.facebook.com/BarbadosFairTradingCommission
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