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Mair reiterates call for audit of JPS/ Petrojam contract

Jamaica Observer

Friday, August 03, 2012 | 11:38 AM    

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KINGSTON, Jamaica — Opposition Spokesman for Industry, Commerce and Energy, Gregory Mair described as 'damning' revelations that Petrojam has been overcharging for fuel purchased to generate electricity.

Mair, in a release today, said that this situation has reinforced his initial call for government to have an independent audit of the contract between Petrojam and the Jamaica Public Service Company Limited (JPS) and the results table in Parliament. 

"Any unfair pricing is inevitably a cost to the Jamaican people and not the Government as it is the consumer that pays for the fuel, whether at the gas pumps or via JPS bills," Mair contended.

Jamaica Public Service customers are to be repaid for a fuel overcharge by the state-owned Petrojam this month after the Office of Utilities Regulation (OUR) determined that independent power producers paid some $343 milion in excess for fuel.

Mair charged that there is no transparency in the price mechanism used by Petrojam nor is there in the negotiating of the sale of Heavy Fuel Oil (HFO) by Petrojam to JPS.

He added that the fuel component in customers’ electricity bills has risen “a whopping 300 per cent” (from 6.4 to 23.6 US cents/kWh) in the last 10 years.

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