JPS bill probe

The Jamaica Public Service Company (JPS) billed a community centre in St Elizabeth approximately $71,000 though the facility had electricity for only two days out of the billing cycle because Hurricane Beryl had ravaged the structure.

That matter, coupled with several complaints reported to the Ministry of Science, Energy, Telecommunications and Transport, formed the basis of a notice to JPS that an investigation has been ordered into its post-Beryl billing practices.

Portfolio minister Daryl Vaz told JPS CEO Hugh Grant in a letter dated August 19 that the ministry has compelling reasons to be concerned about the complaints received from customers who reported large anomalies in their electricity bills following Hurricane Beryl.

He singled out the community centre, calling the sum “unjust” and “untenable”, given that the facility has been without power since the July 3 hurricane.

“This circumstance, among others, raises major concerns regarding the validity and dependability of JPS’s present billing processes and methodology.

“As Jamaica’s sole electricity provider, JPS is responsible for maintaining transparency, accuracy, and fairness in all aspects of its operations, particularly when charging customers during periods of emergency or natural catastrophe,” Vaz said in the letter, a copy of which was seen by The Gleaner.

He said given the gravity of the allegations against the light and power company, a detailed disclosure of its billing methodology, including how estimates are calculated, how actual usage is recorded, and the specific measures JPS has implemented to ensure billing accuracy following Beryl and in the future, should be submitted to the ministry.

In a similar letter, also dated August 19, Vaz gave the Office of Utilities Regulation (OUR) a September 6 deadline to probe and report on its findings into JPS’s billing practices for the period.

Vaz noted that the ministry was highly concerned by the allegations, which, he said, imply potential errors or discrepancies in JPS’s billing system, which, if accurate, might weaken public confidence.

“As the regulatory organisation in charge of monitoring Jamaican utilities, the OUR is tasked for protecting consumers and ensuring that service providers operate in a transparent and equitable manner.

“Given the gravity of the accusations, the ministry is requesting that the OUR immediately conduct a comprehensive audit of JPS’s billing processes, with an emphasis on how the business handled billing during and after the Hurricane Beryl disruptions,” he said.

The Gleaner requested the year-on-year figures related to billing complaints from customers for JPS from OUR, but the body said that it would provide the information at a later date.

However, over a five-year period from 2017 to 2021, OUR’s Guaranteed Standards Consultation Document showed that 62 per cent of complaints received for JPS had to do with billing matters. The complaints totalled 5,767.

Three JPS customers who spoke to The Gleaner, two on condition that their names not be used, criticised the power company following the spike in their July-August bills.

Christopher Henry said his bill amount moved from $37,063.89 to $53,254.54. He said his consumption was on par with previous billing periods but said there had been a significant increase in fuel charges.

“My household has been reduced in so far as two of the persons that are usually there are overseas and they have been overseas since June. In addition to that, three days out of the cycle we didn’t have electricity. So it’s very strange to me why such a massive jump,” he said.

A second customer told The Gleaner that his bill moved from $13,934.26 to $32,339.29. The man, who owns a gas station, said the fuel charge also jumped out at him. It had seen a 30 per increase.

“I’m well aware of Petrojam’s prices and the movements. For August, the diesel and the sulphur went down. I don’t know where them get that 30 per cent from. It is obvious that they’re padding the bill to pay for Beryl and what them lose out of it,” he said, referencing the storm that tore through several communities along Jamaica’s south coast.

Added to that, he said he was off the island for 10 days in early August. Further, he said he was without electricity for several days post Beryl.

A third customer said his previous bill amounted to $16,744.47. For this month, he is being asked to pay $24,502.64.

The fuel charge moved from $24.335 per kilowatt to $32.172 per kilowatt.

“How I look at this is JPS trying to recover their money from Hurricane Beryl of what they need to pay out in terms of paying contractors, what poles they need to replace. I am not home in the days, I leave my house at 7 in the morning and reach back home at 8 in the night. So, for 12 hours I am not home. So how is it that I am getting that bill?” the man questioned.

In a statement last night, JPS acknowledged customers’ concerns and confirmed the movement of the fuel charge was a factor in the rise in electricity bills for the July to August period.

“The main components which cause customers’ bills to either go up or down include energy charges set by the OUR, the amount of electricity that customers use and additional components including the fuel charge and the billing exchange rate which may change monthly,” the JPS said.

“The recent increase is primarily due to a higher fuel charge and, to a much lesser extent, a higher billing exchange rate,” the company added, noting the move in the fuel charge and indicating that the billing exchange rate on bills moved from $156.30:1 in July, to $157.53:1 in August.

“The fuel charge that customers see on their bills is heavily influenced by the actual costs associated with purchasing the fuel used to generate electricity for the period.”

The JPS indicated that, as a precautionary measure against potential damage, New Fortress Energy – the liquified natural gas (LNG) supplier, had to take the gas facility offline just before the hurricane.

“The switch of dependent generating plants from LNG to the significantly more expensive fuel, automotive diesel oil (ADO) to generate electricity for some days, resulted in higher associated costs reflected in customers’ bills.”

However, Dr Nigel Clarke, minister of finance and the public service, has disputed the JPS’s explanation, pointing out that the power company had advised him of the needed switch and requested a waiver of the special consumption tax on ADO for electricity generation in order to restore normalcy.

“The Ministry of Finance responded and communicated the application of the concessionary rate of $4.5611/litre down from $44.90/litre for the month of July as requested by the JPS,” Clarke said.

Last month, it was indicated that JPS customers were not expected to pay additional charges for extensive damage to the company’s infrastructure following Beryl’s passage amid a US$50-million insurance-type fund to which the utility company has access.

The OUR had approved a drawdown of US$4.5 million, or J$697,500,000, from the electricity disaster fund for JPS to prepare for the hurricane season. The company had requested US$7 million.

JPS subsequently revealed that 94 transmissions structures, 2,602 light poles, 4,287 conductors, 137 transformers, and 2,185 other transmission and distribution equipment were damaged as a result of Beryl.

Yesterday, Phillip Paulwell, opposition spokesperson on energy and climate change, urged the OUR to mandate that JPS withdraw all recently issued bills.

“Given the tremendous hardship faced by consumers, particularly following Hurricane Beryl, it is clear that something has gone fundamentally wrong with the JPS billing process,” Paulwell stated.

“With many households experiencing long periods of non-usage of electricity, these exorbitant charges are not only unwarranted but also unacceptable.”

kimone.francis@gleanerjm.com