Who are We?

The Utility Regulation and Competition Office (URCO, the Office) is an independent multi-sector regulatory body with responsibility for the energy and electricity, fuels, information and communication technology (ICT), and water and wastewater sectors of the Cayman Islands. The Office maintains regulatory oversight for all utility providers in the Cayman Islands.

The economic regulatory policy functions are attached to the Economics and Regulatory Affairs team, which provides economic and regulatory advice that materially influences URCO’s decisions, regulatory frameworks, market outcomes and the achievement of statutory public interest objectives across all sectors: energy and electricity, fuels, ICT, and water and wastewater. The team comprises the Director of Economics and Regulatory Affairs (DERA), the Economist and the Regulatory Accountant.

JOB DESCRIPTION

Overview

Reporting to and being directed by the Chief Executive Officer (CEO), the DERA is the principal economic and regulatory policy adviser to the Office, responsible for leading assessment and the provision of sound advice on all competition economics, regulatory economics and regulatory finance matters across the sectors under URCO’s remit. The DERA leads the Economics and Regulatory Affairs team, acts as a subject matter expert providing advice to the CEO, the Board and the Executive Directors. This executive leadership role contributes directly to the strategic direction, organisational performance and regulatory priorities of URCO, and is responsible for the mentorship and development of economic and regulatory finance expertise within URCO.

Scope of Work

Specifically, the DERA shall:

• Ensure the Office creates an economic policy framework that instils the confidence of all stakeholders, in accordance with the Utility Regulation & Competition (URCA) Act, Information & Communications Technology Act (ICTA), Electricity Sector Regulation Act (ERA), the Water Sector Regulation Act, The Water (Production and Supply) Act, the Wastewater Collection and Treatment Act, the Fuel Market Regulation Act, the Dangerous Substances Act and other relevant Acts, subsidiary legislation and government policy and applicable licences.
• Lead applied economic research on a wide range of matters related to the utilities and industries that URCO regulates, which include short- and long-term forecasting of loads, the billing determinants of public utilities, competitive policy analysis, market analysis, cost analysis, and rate structure analysis of various aspects of utility issues.
• Provide sound contextual advice, with the understanding that such advice is likely to significantly influence regulatory projects and decisions and in doing so, coordinate economic, financial and competition policy considerations across all regulated sectors.
• Have accountability for establishing the strategic economic policy direction of the sectors in line with the directions and approval of the CEO, which assists in ensuring URCO’s vision, mission and objectives are met.
• Operates proactively with a high degree of independence, exercising professional judgement on complex matters that influence organisational strategy, regulatory outcomes and stakeholder confidence.
• Lead development of economic policies, rules, and establishment of tools to enable URCO to exercise its powers for consumer protection and promote innovation in the sectors for which it has responsibility for economic regulation.
• Lead the regulatory finance function of the Office, including the regulatory accounting framework, the verification of licensee financial reporting and the financial assessment of licensee plans, investments and applications.

Competition Economics and Policy

• Lead development of economic policy and provide advice and support to the CEO and all sectors, departments and teams in URCO.
• Advise the CEO and Executive Team on, and participate in, negotiations with licensees, applicants for licences and concessionaires on the terms of licences to be issued by the Office.
• Direct the upgrading of policies and procedures to ensure compliance with economic statutory requirements, and review and provide input to all economic decisions, regulatory measures and consultative documents to be issued by URCO to ensure a sound economic basis.
• Lead, organise and conduct major economic proceedings, such as incremental costing methodology and price cap plans, and significant market power appraisals and reviews.
• Direct the assessment of market behaviour and dominance, market definition and pricing tactics as part of addressing competition issues, and make recommendations to the CEO.
• Continuously monitor the relevant markets to ensure and promote fair competition and, where there appears to be market failure, propose remedies to the CEO.
• Advise the Executive Team and provide support in disputes to ensure that decisions are based on sound economic principles and are in accordance with the regulatory framework.
• Research, analyse and direct changes to the legislative and economic policy frameworks to ensure the Office is operating effectively and appropriately in current circumstances, while enabling the environment to accommodate future changes in technology and innovation.
• Supervise the appraisal, assessment or investigation of anti-competitive practices or abuse of a dominant position in relation to agreements, decisions and practices of covered services, by or between sectoral providers or between one or more sectoral providers and any other person.
• Lead the economic and financial appraisal of applications for mergers, acquisitions or changes in control in relation to licensees.

Economic Regulation and Regulatory Finance

• Lead development and supervise the implementation of tariff schemes and provide advice and support to the CEO and all sectors, departments and teams in URCO.
• Lead the evaluation of rate review applications and oversee the design and development of tariff structures within a proper regulatory regime.
• Lead development of regulatory financial models which combine all the building blocks of the regulatory price-setting process within a full accounting framework and the applicable licence conditions.
• Own the Office’s regulatory accounting framework, including regulatory accounting guidelines, cost allocation and accounting separation requirements, and the financial reporting requirements placed on licensees.
• Direct the programme of verification of licensee financial reports and revenue returns, and quality assure the resulting findings before they are passed to the Finance team for invoicing or to the compliance and legal functions for enforcement action.
• Direct the financial assessment of licensee capital investment plans, business plans, solicitation bids and licence applications, including prudence, commercial viability and financial fitness.
• Monitor the performance of service providers in terms of level of investment, cost of service, financial health and efficiency in the production and distribution of the required services.
• Lead benchmarking of the performance of service providers over time and against comparable utilities in the Caribbean region and internationally, to assess productivity, costs, returns, growth and efficiency.
• Lead the provision of economic policy analysis and support the coordination, monitoring and evaluation of integrated business planning and capital investment planning for the generation, supply and distribution of electricity, water production and supply, and all other sectors under URCO’s remit, providing advice and assistance to the Executive Directors.
• Keep under review the framework for economic regulation and competition in the relevant markets, and advise on the systems, procedures and performance measurement standards needed to monitor regulated utilities and sectors in a transparent and effective manner, in accordance with the enabling legislation and sound economic policy.
• Review contracts, including renewable power purchase agreements (PPAs), affiliate transactions and related-party contracts, for their economic and financial implications.

Board Advisory, Governance and External Representation

• Provide expert economic, competition and regulatory finance input to the CEO and Executive Directors for inclusion in reports, recommendations and draft determinations placed before the Board, and attend Board and committee meetings to present or support that input when requested by the CEO.
• Act as subject matter expert to the Executive Directors and sector teams, reviewing and commenting on papers, policies, consultation documents and draft determinations prepared across the Office to ensure a sound economic and financial basis.
• Prepare, or direct the preparation of, consultation documents, decisions and position papers on economic and regulatory finance matters, and assist in preparing statements of regulatory issues for print and electronic media.
• Deliver presentations of URCO’s economic policies and positions to Government, licensees, industry and other interest groups, and represent the Office’s economic and competition positions in external engagements as directed by the CEO.
• Establish and maintain professional relationships with utility regulators, competition authorities and industry associations regionally and internationally, through which URCO may obtain information as to best practice in utility regulation.
• Support agreed strategies to promote awareness of the role of URCO in the economic, social and political development of the Islands.

Leadership and Management of the Function

• Provide strong intellectual leadership and strategic advice on economics, regulatory finance and assessments across all sectors of URCO.
• Lead and manage the Economics and Regulatory Affairs team, comprising the Economist and the Regulatory Accountant, together with any contracted economic or financial consultants, setting objectives, managing performance and ensuring the quality of the team’s output.
• Receive, prioritise and allocate requests from the CEO, Executive Directors and sector teams for economic and financial analysis, so that the team’s capacity is deployed in line with organisational priorities.
• Identify skills gaps and development needs for team members and ensure appropriate training, coaching and talent development, including succession planning for the function.
• Any other duties which may be assigned from time to time.

Education and Qualifications

• A master’s degree in economics with a concentration in Regulatory Economics and/or Competition Economics is required, with a PhD being preferred.
• Other relevant post graduate qualifications, including in finance or regulatory accounting, are desirable.

Experience

• A minimum of 12 years’ progressive senior level experience in utility regulation dealing with major licensees in competitive as well as non-competitive markets.
• Sound understanding of economic regulation and competition analysis and policy.
• Advanced knowledge and understanding of the technology, structure and economic principles of regulated markets, their development and trends related to public utilities and undertakings.
• Experience on regulatory projects such as market studies, investigations, actions and appeals.
• Experience in econometric modelling and statistical analyses.
• Significant previous experience in developing economic policy related to public utilities regulation and competition regimes.
• Experience leading and managing professional staff, including economists and financial or accounting professionals.
• Experience directing or quality assuring financial analysis of regulated entities, such as regulatory accounts, revenue verification, cost of capital or capital expenditure reviews.

Skills & Abilities

• Knowledge and understanding of relevant legislation, regulations and procedures governing URCO and working knowledge of the Cayman Islands utility and regulatory landscape. Familiarity with international and regional utility regulatory bodies.
• Strong research, analytical and investigatory skills to quickly analyse complex factual situations to understand key risk issues.
• Ability to read, understand and apply regulations, contracts and other legal documents.
• The ability to multi-task and interpret complex data, maintain a sense of urgency in achieving outputs and other deliverables consistently and with a high degree of quality and accuracy.
• Sufficient financial literacy to direct and quality assure regulatory accounting and financial analysis, and to integrate it with economic advice.
• Exhibit the highest levels of confidentiality, integrity and political neutrality.