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Business
June 29, 2010

Energy policy to address wheeling by September

Energy ministry officials yesterday said that policies that will give private entities access to Jamaica Public Service Company’s (JPS’) distribution lines to provide its own electricity at several sites across the island, among other energy related issues, will be comprehensively addressed by September.

Senior energy engineer in the Ministry of Mining and Energy, Fitzroy Vidal told the Business Observer at the Observer headquarters in Kingston that ‘wheeling’, which concerns the development of terms and conditions that would allow a private entity to provide its own electricity at multiple geographical locations transiting JPS’ network, was currently supported but pricing still remains an issue.

“There is nothing which precludes anybody at the moment from wheeling power. The policy supports it right now,” he told journalists. “The issue is the price or the rate… we are addressing several policies now which by September would have comprehesively addressed all of these issues. In the same way we use these policies to deal with the Wigton rates. It is the electricity policy that will address wheeling and the regulatory environmnent and pricing.”

Energy Minister, James Robertson, said he viewed wheeling as an opportunity to encourage the use of renewable energy.

“All these policies will be harmonised to make sure thare are no policy conflicts,” added Vidal.

THE Office of Utilities Regulation (OUR) had set its sight on a June date to make a determination on a new regulatory mechanism that facilitate wheeling in its its corporate plan for the next three years — currently available on the regulator’s website for public comment — the OUR said it would “conduct public consultations and issue a Determination on ‘wheeling’, by June 2010”.

“(Wheeling) concerns the development of terms and conditions that would allow a private entity to provide its own electricity at multiple geographical locations transiting JPS’ network, a scenario that is contemplated by Condition 2 clauses 11 and 12 of the JPS All Island Electricity Licence,” said the regulator.

The OUR said it was responding to “interest among private entities to self-generate electricity for supplies at disparate geographical locations”, adding that the process could “only be facilitated if there is in place some kind of wheeling arrangement with JPS”.

Robertson noted that the section of the policy was being tailored to accommodate the National Water Commission, the state-run utility company that is among the largest users of electricity and which would have scores of pumping houses across the island.

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