Paulwell's shocking JPS proposal

PHILLIP PAULWELL needs to focus his sights almost exclusively on lowering Jamaica's energy bill and ensuring the revival of the country's bauxite sector. While it is the case that he has developed a reputation of being somewhat of a Mr Fix-it, the aforementioned issues have lagged under his watch, and perhaps by way of distraction, he wants customers of the Jamaica Public Service Company (JPS) to pay to regularise the activities of criminals.

Responding to concerns raised by Central St Catherine Member of Parliament Olivia Grange during last week's sitting of the Standing Finance Committee, Paulwell said it is to become the policy of the Government that these crooks pay a flat rate of $2,000 per month.

"There is a policy situation that has emerged that will require full support," Paulwell said in Parliament.

"It is my view - and I do intend to make a submission to the Office of Utilities Regulations (OUR) in their current review - that in relation to the thousands of persons who are now stealing electricity, that there be a determination of a flat rate, say, about $2,000 per month, to get people in the habit of starting to pay something, so that when we get to the price reduction that we have to get to when new capacity comes on stream, they will be then called upon to pay the real cost," Paulwell added.

"We do believe that there should be a rate class for persons in that category and that there should be a flat rate for the time being until 2016 ... and that the agency will assist in the house wiring, you can recover that over time, and the certification. That is the only way you can bring them on legally and properly," Paulwell said.

Now, this is stunning from Minister Paulwell. He cannot be serious. As difficult as it may be, I am going to exercise restraint and not comment on the fact that bill-paying customers have been forced to carry the burden of electricity thieves over many years, with the company siphoning from our pockets to underwrite a portion of its losses.

Flat rates are ludicrous

Because of this restraint, we won't even consider how ludicrous it is for Paulwell to pick a $2,000 flat rate out of the air, which is a fraction of the real cost of the electricity consumed in these households.

Instead, I wish to make a very small point that Paulwell understands. It has to do with the law. The minister speaks glibly about the creation of a new rate class for electricity thieves which would allow the proposed policy to reward them for their abstraction. If the creation of this rate class is not discrimination against other residential users, I don't know what discrimination is, and that is something the Constitution frowns upon.

The question, therefore, is how would this ridiculous proposal work? Is it that all light thieves will have to be registered and then be given this generous package in reward for their years of criminality and unconscionable action, or is it that all households on PATH would benefit?

The reference to PATH is a natural one, since it is the vehicle, and often the yardstick, by which the need for social and poor relief is offered. If this is the case, it would be a welcome reprieve for those poor Jamaicans who are on PATH, but do not use their circumstances as an excuse not to to pay their bills. Grange made the correlation between poverty and electricity theft when she told Parliament, "Poor people wouldn't be stealing electricity if they really were in a position to pay for it."

"There are members of parliament in here who are very insensitive to the plight of poor people. It is not a laughing matter. A lot of people are hurting, and unemployment rate is going up. A lot of people are unemployed and can't pay their utility," she said.

"These people, most of them are unemployed. They can't afford to wire their homes. You have a lot of elderly persons, they absolutely have no way," Grange said.

It is such a pity that we continue to use poverty to justify criminality, and clearly ignore the fact that stealing electricity has been a way of life for so many persons, particularly in inner-city communities - and businesses (uptown, too!) - where freeness has been a way of life.

This stolen electricity, however, has to be paid for, and it is those of us, the working poor, who cannot afford to install solar or other systems who end up paying the bill of those persons Paulwell and Grange want to hand freebies. Residents who go around cap in hand are already benefiting from free houses, free water, and the bulk of JSIF spending.

Recovering losses

At present, JPS is allowed to recover a portion of its system losses from its customers. The current target is set at 17.50 per cent. Together with a request for a 21 per cent average increase, the JPS wants the target to be increased to 22.95 per cent in 2014, barely declining for the remaining years up to 2018.

It means that bill-paying customers will have to carry a greater burden for system losses, while subsidising those who have been comfortable stealing electricity.

Parliament should not have settled for Paulwell's hogwash in response to Grange on the matter. I hope the OUR is not as gullible to allow bill-paying customers to be shafted in the manner the minister has proposed.

Email feedback to thegavel@gleanerjm.com.