Regulation for Small-Scale Service Providers, Jamaica

The problem

In the early 2000s, Jamaica liberalized its water sector, opening the door to private and community providers to supplementing the National Water Commission (NWC) services.

To ensure that customers did not receive substandard service or fall victim to monopoly pricing, the Office of Utilities Regulation (OUR) wanted to regulate small providers. However, OUR realized that applying NWC’s regulatory framework would be prohibitively expensive and could drive small providers out of business.

How we helped

We developed a regulatory framework for small providers, which defined clear standards for drinking water and allowed freedom in tariff setting provided that tariffs remained below those charged by the national utility. Our recommendations were based on a survey of international practice and consultation with communities and providers in Jamaica.

Impact

The OUR adopted the regulatory framework we recommended. Small providers operate successfully in several parts of the country, providing service to new housing developments and resort complexes as well as piped rural communities that previously lacked piper water.