Energy Minister Says It’s “Unjust” For JPS To Bill Customers For Electricity Theft Losses

Energy Minister, Fayval Williams says it’s unjust for the Jamaica Public Service Company, JPS, to bill paying customers for losses resulting from electricity theft.

She says the situation calls for solutions to reduce the cost of electricity.

The Minister says the cost of electricity in Jamaica is twice the world average.

Fayval Williams, Minister of Energy.

She was speaking last evening on Nationwide @ 5 with Cliff Hughes and Tyrone Reid.

Meanwhile, Senior Vice President of Customer Service at JPS, Ramsey McDonald, says the company has spent millions of dollars to reduce electricty theft over the years.

He says paying customers bear approximately 20 per cent of the losses from electricity theft.

Mr McDonald says the cost is reflected in the fuel costs.

Ramsey McDonald, Senior Vice President of Customer Service at JPS.

He was speaking last evening on Nationwide@5.

Meanwhile, the Office of Utilities Regulation OUR says the JPS is allowed to pass on 21-percent of its losses to its customers.

It says based on 2019 JPS Annual Adjustment, JPS passes on eight percent of technical losses and 13-point-3 percent of non-technical losses to paying customers.

According to the OUR, the treatment of losses is specifically provided for in the Electricity License, 2016.

It says that document states that OUR shall have the power to set targets for losses, heat rate and quality of service.

It says in accordance with the License, the OUR is mandated to set the target for technical and nontechnical losses.

The OUR says where JPS fails to achieve those targets, the company has no option but to absorb the financial loss in its revenues.

And it says consequently, the OUR, derives the amount of losses, both technical and non-technical, that is included in the non-fuel rate charged, as charged to customers.

The OUR says that’s done through rigorous analysis in keeping with the provisions of the JPS License.

In the meantime, JPS’ Senior Vice President of Customer Service, Ramsey McDonald says starting this month the power company will be contacting customers when their electricity bills increase by 30% or more.

Ramsey McDonald, Senior Vice President of Customer Service at JPS speaking last evening on Nationwide@5.