Paulwell objects to possible hike in consumer contributions to EDF

Phillip Paulwell, the opposition spokesman on energy and climate change, has raised strong objection to a proposal from the Office of Utilities Regulation (OUR) to increase consumers’ contributions to the Electricity Disaster Fund (EDF).

The Jamaica Public Service (JPS) has applied to the OUR to withdraw US$26 million from the EDF to help cover repair costs resulting from the impact of Hurricane Beryl in July.

The OUR, which maintains management of the EDF, is contemplating whether to increase customers’ contribution, which currently stands at J$19 per month for customers using a minimum of 150kWh per month.

In a news release yesterday, Paulwell expressed grave concern about the impact of such a move on consumers, particularly given the ongoing cost-of-living crisis. He called for greater transparency from the OUR and JPS, emphasising that consumers deserve a clear and detailed explanation of the basis for this request and the justification for any increase.

“I do believe that consumers have the right to a transparent process where the details of the claim are disclosed,” said Paulwell, who further argued that, “neither do I support an increase to consumers’ contributions to the disaster fund at this time. The Jamaican people cannot continue to bear the brunt of every financial shortfall in the energy sector”.

Established in 2004, the EDF was designed to provide a buffer for restoration activities following natural disasters, while minimising financial strain on consumers.

However, the opposition spokesman on energy noted that the very essence of the fund, to shield consumers from the financial impacts of disaster recovery, seems to be under threat with the current proposal to raise the monthly contribution.

Paulwell also questioned the timing of this proposal, pointing out that, in July, assurances were given to the public that there would be no additional charges to customers to support JPS’ post-hurricane restoration efforts.

“This reversal undermines public trust. If the EDF was intended to ensure that consumers are not saddled with additional costs in times of disaster, then the OUR and JPS must act in alignment with this purpose. Transparency and accountability are non-negotiable in this matter,” Paulwell added.

He said Jamaica already has one of the highest energy costs in the region, a factor that places immense pressure on both households and businesses.

The shadow minister is urging the OUR to prioritise consumer protection and explore alternative measures to strengthen the EDF without imposing further financial burdens on the public.