Jamaica Public Service Company (JPS) has sought to explain the basis for significantly increased electricity bills for its customers in the latest billing cycle.
This followed wide-scale clamouring from members of the public for answers from the light and power company, and a broadside from Energy Minister Daryl Vaz, who has sought for the Office of Utilities Regulation (OUR) to get clarity on the matter.
The Governing Jamaica Labour Party (JLP) also demanded answers from the power company.
On Monday evening, JPS issued a release in a bid to clarify the development. The full text of the company’s statement is carried below.
“In response to concerns from customers regarding a noticeable increase in their bills, JPS is seeking 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.
“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 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?
“The fuel charge that customers see on their bills is heavily influenced by the actual costs associated with purchasing the fuel (that was) used to generate electricity for the period.
“Use of automotive diesel oil (ADO): As a precautionary measure against potential hurricane damage, 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 will continue to provide customers with information and clarity, even as it strives to provide reliable and high-quality service to all (its) customers.”
