Daryl Vaz | Billing injustice: securing interests of all Jamaicans

Over a decade ago, the Jamaica Public Service (JPS) Company launched a public education campaign against electricity theft themed around two words and one simple question, “How come?” The campaign achieved some success but perhaps the most lasting impact was the integration of the words “How come?” into regular conversations when confronted with incredible or ludicrous scenarios.

It is disappointing that, rather than joining me and amplifying the pursuit of equity, some have chosen to describe my probity and transparency surrounding the JPS billing issues as political theatre. The theatre is often associated with the words”lights, camera and action”. Given that the other parties in this play have taken on the roles of “lights” and “camera”, allow me then to peacefully advocate for action.

ALL FOR ONE OR ONE FOR ALL?

The Office of Utilities Regulations (OUR) has a very curious term affixed to their website stating that they are “regulating utilities for the benefit of all”. Since the passage of Hurricane Beryl I have taken a much keener note of the operations of the regulator and I am inclined to believe that the verbiage affixed is at best imaginary.

Certainly, as minister, I have had to employ strong advocacy and extreme moral suasion to ensure the concerns of thousands of Jamaicans are not only heard but are addressed. Without trying to sound redundant, this course I have taken has undoubtedly placed me within the crosshairs of several political and editorial figures.

The Electricity Disaster Fund’s Rules of Procedure for Operation and Administration is a 2007 document and, after 17 years, has been without review or adjustment. The fund is financed through a precautionary provision approved and embedded in the tariff, and forms a part of the energy rate expressed in terms of dollars/kWh. In other words, the fund is financed from the energy bills of consumers. Prior to the passage of Hurricane Beryl, the fund had a value of US$50 million or approximately J$7.8 billion.

The rules state that “the primary aim of the Fund is to reduce the financial exposure of JPS to damages inflicted on its transmission and distribution assets by natural disasters, in the absence of traditional insurance coverage from firms that specialise in this business” I fail to see how this is a benefit for all and how Jamaicans continue to pay the piper but, in this instance, are not allowed to dance to the tune.

I imagine that insurance would have been at a cost to the utility provider. In the absence thereof, Jamaicans have been tasked with providing the buffer for the JPS. The fund is most inequitable and I intend to press for a review of the primary aim of the fund and the application of its resources. A benefit of over J$783 million was approved by the regulator from the fund before Beryl, to help JPS fund their preparations. Nothing for the customers. How come?

FORCE MAJEURE

The Scriptures teach us that God sends the rain for the just and the unjust. Force majeure means “greater force” and is related to an act of God, an event for which no party can be held accountable. Beryl undoubtedly had an impact on the JPS and its ability to meet every requirement under its existing licence.

Interestingly, there exists no similar relief for the Jamaican people as a result of force majeure. No relief from the emergency fund, no mandatory relief from the obligations to pay bills. It seems as though, despite Beryl being an act of God, it is the Jamaican public and the customers of JPS who are being held accountable. Again I ask, How come?

FUEL FIASCO

A July 1 letter from the CFO of JPS to the minister of finance outlined the likely “Tax impact from switch to ADO fuel due to Hurricane Beryl”. The letter outlined three power plants; the South Jamaica Power Company, the JPS Bogue combined plant, and the NFE Jamalco power plant.

Of the three power plants mentioned in the letter, NFE Jamalco was unable to switch to ADO fuel and the JPS Bogue 114MW plant had “five days of storage available at the station”. The New Fortress FSRU ceased operations at midday on July 1 and resumed operations at approximately 9p.m. on July 6. The data, when put together, suggests that one power plant would have used ADO fuel for a period of five to six days in the worst-case scenario.

It would also suggest that the cost for this switch to ADO fuel would be passed directly to the customers who were supplied by this plant over this specific period. What does not compute is that a five-day switch to ADO at one power plant translates to a 32 per cent hike in the JPS fuel rate, and this rate being further applied to all customers. How come?

I urge the incoming JPS President and CEO Hugh Grant to use this debacle as the perfect opportunity to demonstrate his leadership and commitment to his customers and the Jamaican people. His presence in the worst affected areas and his insistence upon JPS meeting deadlines have been refreshing in these most challenging times, and it would be a shame for this unfortunate series of events to be the hallmark of his commencement at the helm of the utility provider.

Daryl Vaz is minister of science, energy, telecommunications and technology, and member of parliament for Western Portland. Send feedback to columns@gleanerjm.com