JPS blames higher fuel charge and exchange rate for increase in August bills

In response to concerns from customers regarding a noticeable increase in their bills, the Jamaica Public Service (JPS) has sought to provide clarity about the charges outlined and address the issue directly. 

“This month, many customers may have seen a rise in their electricity bills for consumption during the July to August billing period, despite consistent usage compared to previous months,” JPS said in a press release this evening.

“The main components which cause customers' bills to either go up or down include Energy Charges set by the Office of Utilities Regulation (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 light and power company said, “The recent increase is primarily due to a higher Fuel Charge, and to a much lesser extent, a higher Billing Exchange Rate.”

• The Fuel Charge on August bills is $32.172 per kilowatt hour (kWh) compared to the Fuel Charge of $24.335 on July bills.
• The Billing Exchange Rate on bills moved from $156.30:1 in July, to $157.53:1 in August.

WHY HAVE FUEL CHARGES INCREASED?

JPS said 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.

USE OF AUTOMOTIVE DIESEL OIL (ADO)

As a precautionary measure against potential hurricane damage, the utility company said New Fortress Energy – the Liquified Natural Gas (LNG) supplier – had to take the gas facility offline just before the hurricane to protect it from damage.

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, JPS said.

“JPS will continue to provide customers with information and clarity, even as it strives to provide reliable and high quality service to all customers,” the company said.

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