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Jamaicans starting to conserve
Light company clamping down on theft
Ross Sheil rsheil@jamaicaobserver.com
Wednesday, December 05, 2007

With the energy crisis continuing to hurt the pockets of consumers, residential customers of the Jamaica Public Service Company (JPS) have on average cut their electricity consumption from 190 to 175 kilowatt-hours per month over the past year - an eight per cent cut.

The cost of electricity per kilowatt-hour has increased from US25 cents to US27 cents per kilowatt-hour over the year.
JPS is also reporting to have arrested an upward trend in its losses - from theft and transmission - falling from 23.54 per cent last year to 22.55 per cent in October. JPS - which is owned 80:20 between Marubeni Corporation of Japan and the Jamaican government - estimates that overall consumption is increasing by 3.6 per cent each year compared to the Office of Utilities Regulation's (OUR) figure of four per cent.

Interviewed on Monday by the Business Observer at the utility company's headquarters on Knutsford Boulevard in New Kingston, JPS President Damian Obiglio said that despite the fall in consumption, Jamaicans needed to be more aware over energy consumption, with the national oil import expected to exceed US$2 billion this year. Beginning this month JPS will include leaflets, teaching persons to conserve energy and read meters, in bills sent to consumers.

"Someone asked me, 'Why are you talking about this, wouldn't you be better off - you're JPS! - if people consume more electricity?' I don't think anybody will base a business model on waste but conservation is about long-term sustainability that will create a long-lasting business because people will have the money to pay for the service today and tomorrow," said Obiglio.

Obligio. when I first came here I could see the cracks in the window so when I went back to America I bought some tape

Obiglio, an Argentinean who was previously employed by utility company AES Corporation in Brazil, a world leader in alternative energy and conservation, expressed surprise at local consumption habits. Brazilian retailers are compelled by law to display the energy consumption of appliances. But in Jamaica, Obiglio is baffled by the prevalence of domestic appliances such as four-door refrigerators.

He advises persons to take simple steps such as installing proper insulation and turning off appliances such as air-conditioning and water heaters when not in use.

Corporations should also consider commissioning energy audits - provided by JPS and independent companies - to learn how they can reduce their light bills.

"When I first came here I could see the cracks in the window so when I went back to America I bought some tape!" said an animated Obiglio pointing to the improvised sealing on his office window. "I thought it was ridiculous to lose so much energy!"

Beyond encouraging efficiency and reducing transmission losses, one major challenge for JPS is cracking down on persons stealing electricity from the national grid. Their actions are subsidised by paying consumers who pay an extra 5.8 per cent to compensate the utility company under their tariff structure agreed with the Office of Utilities Regulation (OUR), which is scheduled for renogotiation in 2009.

While residents in poor communities frequently use 'throw-up' wires to connect illegally recent culprits have also included manufacturers, restaurants, nightclubs, bars, a small hotel, hardware and furniture stores, grocery shops, a football stadium and a financial institution.

JPS has removed 22,360 throw-ups this year and will target four of the worst-offending communities this month. One community, Runaway Bay (middle) in St Ann, was consuming 80 per cent of its electricity illegally. The rate of theft in remaining three communities runs at 50 per cent: McHill Clarks Town (top and bottom) in Trelawny and Gully Road in St Mary.

Obiglio said that persons stealing electricity are consuming light at three times the rate of legal or regularised customers - a further blow to conservation efforts and the JPS's bottom line. JPS has to remove a hook-up several times before a person is persuaded to become a legal customer.

"After the fourth of fifth time they find they don't have the money to continue buying the wire!" said Obliglio.
JPS will next year begin a push to persuade inner-city residents to both connect legally to the national grid and to conserve energy.

Traditional wires will be replaced by anti-theft technology - a combination of concentric wire and lashed cable joined together. These have proved successful in Brazilian shanty towns, known as favelas, said Obiglio.


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