Thursday 26 April, 2018

JPS seeking electricity rate increase

The Jamaica Public Service Company (JPS) is presently seeking an increase in electricity rates generally.

Based on the company's submission, if approved, the new rate structure will see the typical residential and small business customer's electricity bill increasing by 2.8 per cent.

This is while the larger customers would see an increase of between one and two per cent.

In the rate review application, which was submitted on May 5, the JPS asked the Office of Utilities Commission (OUR) to set its non-fuel revenue target for the next 12 months at just under $51 billion.

Interestingly, while proposing an increase for most of its customers, the JPS has asked the OUR to allow it to create a new rate class for its largest customers. The new rate class, if approved, would see the mega-size customers realising an average 21 per cent reduction in their bills.

But it is not benevolence on its part, said the JPS, but instead an attempt to keep the mega-size companies on the grid. The JPS said if its bigest customers defect and set up their own off-grid power supply, this would result in the remaining JPS customers being called upon to pay even higher electricity bills.