$1 billion subsidy for 20,000 JPS pre-paid customers

Twenty thousand first-time, pre-paid customers of the Jamaica Public Service Company (JPS) who sign up for pre-paid electricity will benefit from a $1 billion subsidy from the Government.

They are also set to benefit from a $4,000 credit for six months after signing up. 

Finance and Public Service Minister Fayval Williams made the announcement on Tuesday during her maiden Budget presentation at Gordon House.

She also said the lowering of the General Consumption Tax (GCT) on electricity bills to seven per cent that was announced by Prime Minister Andrew Holness last November, will take effect on May 1. 

Williams described her announcement of the prepaid subsidy as “the most ambitious programme to allow affordable access to pre-paid electricity”. 

She explained that the $1 billion dollars will go towards paying for house wiring and inspection  to get those with illegal connections "legally and safely connected to the JPS grid". 

“We know that the cost of house wiring and inspection can be prohibitive for many persons and so as a caring government we are absorbing that cost in order to begin to cauterise this massive electricity theft problem,” Williams remarked.

“Prepaid electricity will put legal electricity within reach of many, because prepaid electricity allows you to buy the amount of electricity that you can afford, when you can afford it. You have complete control,” she stated.

As part of efforts to encourage Jamaicans to sign up for the prepaid electricity service, the first 20,000 new customers will get $4,000 credit for electricity per month for six months under the Government’s House Wiring and Inspection Programme. 

The programme will be implemented by the Jamaica Social Investment Fund (JSIF).

JPS will pay $2,000 of the amount and the Government will pay the other $2,000. Both JPS and JSIF will identify the vulnerable communities and provide the sign-up procedures.

“To give a sense of the value of the $4,000 credit, it is worth 50 per cent of the average monthly bill of a typical prepaid customer currently on the JPS system. The data from JPS is showing that the average monthly bill for prepaid customers is $8,000 and that currently there are 17,000 customers who are using the prepaid electricity metre,” Williams said.

Prepaid cards and vouchers will be available at hundreds of outlets across the island and customers will also be able to top up online.

According to Williams, the offer of subsidised electricity is one Jamaicans cannot refuse. She also highlighted that pre-paid electricity was not just for vulnerable communities or persons not legally connected to the grid.

“Any individual customer can buy the pre-paid service and the GCT on pre-paid is also seven per cent,” she said.

She also announced that the Government’s commitment to reduce the GCT on electricity to seven per cent and eliminate the 150kwh threshold for postpaid residential customers was on track for implementation by JPS as of May 1. 

It was first announced by the prime minister at the Jamaica Labour Party’s annual conference last November.