A large but unnamed financial institution yesterday threatened to sue the Jamaica Public Service Company (JPS) for going public with news that the entity had been allegedly caught stealing $3 million worth of electricity.

JPS had earlier announced the shocking discovery at the Kingston branch of the financial institution but left its name out of the company’s official press release, apparently to save the entity from embarrassment.

“JPS has declined to reveal the name of the financial institution, because of the possible implications for that institution,” said Winsome Callum, head of corporate communications at JPS.

Callum refused to state what were the “possible implications” when queried by the Observer, but disclosed that the financial institution had threatened to sue the JPS for publicising its accusation of meter-tampering.

In a release, the JPS said its investigators who visited the “prominent institution” had found a meter that had been “rigged to under-register electricity consumption”.

In early January, the JPS Revenue Protection Department carried out an audit of the company’s account that revealed that “the meter seal had been removed and the meter disc jammed to slow registration”. JPS estimated the “stolen electricity” at $3 million over two years.

“On identifying the evidence of meter-tampering, the JPS presented its findings to the manager of the branch of the financial institution, and arrangements were made by that institution to have the full amount outstanding paid today [yesterday],” Callum told the Observer via e-mail.

She indicated the company would pursue legal action to recover the amounts owed, if the matter was not settled to its satisfaction.

“The financial institution is one of several businesses being investigated by the JPS as part of its ongoing efforts to reduce electricity,” the JPS said.

The $3-million discovery is the second biggest theft of electricity, after the $7-million theft by another company last year. Callum also disclosed that 698 businesses were fingered by the JPS last year for electricity irregularities.

But when the Observer suggested that JPS was protecting big clients by not disclosing their names, Callum said the company never names any of its clients accused of stealing electricity, unless the matter was taken to court where it then became a public matter.

The JPS apparently decided to release the discovery of the theft, even if not the names, as a veiled threat to commercial entities which continue to steal electricity, despite a big drive by the light and power company to clamp down last year.

Callum added that electricity theft was common among the company’s commercial customers which frequently utilised sophisticated methods like meter-bypass or meter-rigging.

JPS reported yesterday that its drive to reduce electricity theft had yielded 138 arrests; 1,300 account audits and resulted in the removal of 7,000 illegal wire throw-ups in 2006. The company also collected US$1.5 million in retroactive and forward billing.