OUR directs JPS to reduce and reissue some electricity bills amid massive increases
Published:Saturday | August 24, 2024 | 12:10 AM
The Office of Utilities Regulation (OUR) says it has instructed the Jamaica Public Service Company Limited (JPS) to reduce some customers’ bills in the next billing period.
Further, JPS has been directed to reissue those bills issued in August with zero consumption that do not show a corresponding zero money value.
The scale and extensiveness of the JPS bill increase for August came to the OUR’s attention after the utility began to dispatch the bills and customers started to complain about high electricity charges.
The OUR said in 2021 it communicated to JPS that it viewed any average increase in overall rates in excess of five per cent to be a rate or bill shock; a situation that should be avoided.
Previously, in one-off spikes, the regulatory treatment is that the additional cost to customers was spread over several months to mitigate the effects on customers, the OUR outlined in a press release yesterday.
The OUR said it has commenced an investigation into the current billing complaints.
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The investigation will include, but not limited to, an examination into the dispatch of generating plants during the period; any applicable system operating constraints (generation and transmission) encountered in the generation dispatch process during system operation in July 2024; the basis for the substitution of automotive diesel oil (ADO) for natural gas; the effect of the government tax waiver on ADO pricing; and the mechanisms to minimise the rate hikes in one-off situations.
The OUR anticipates that it will wrap up its investigation promptly and will engage with JPS “to agree on the treatment of any verifiable increases that are appropriate”.
Once the relevant information has been received from the JPS and analysed, the OUR will determine what, if any, remedies are necessary.
Pending the outcome of its investigation, the OUR said it has written to JPS, explaining that within the context of the current hike in electricity bills, how it was executed, and given the OUR’s responsibility to approve non-fuel and fuel rates as stipulated in Schedule 3 of JPS’s Electricity Licence, 2016, it finds it necessary to direct the power company to reduce customer bills in September by the difference in JPS’s fuel cost in July over June.
Additionally, the August bills with zero consumption that do not show a corresponding zero money value should be reissued.
“Customers whose July-August JPS bills were higher than five per cent of their May-June bills should first, complain to JPS, ensuring that you provide all relevant details like the current and previous bill. Also, if the complaint is made via the JPS call centre, ensure you get a reference number,” OUR advised.
“Contact the OUR immediately if: you are not satisfied with JPS’s response; you are told to pay the bill or the service will be disconnected; or you receive no response from JPS within 30 working days.”