EVEN before Jamaica Public Service Company (JPS) began to fully benefit from the latest rate increase effected in June, the light and power company saw its revenue jump 27 per cent to US$237 million ($20 billion) in the three months to June 30 when compared to year-earlier levels.

Fuel cost actually rose 43 per cent over the period, which means that a considerable portion of the increase in revenue was due to fuel rates that are passed on to consumers going up.

Even then, JPS’ operating profit before net finance cost and other expenses climbed 19 per cent over year-earlier levels to US$18 million ($1.55 billion) during the review.

Last October, the regulator — the Office of Utilities Regulation (OUR) — gave JPS permission to set energy rates as much as 29 per cent higher, with big commercial customers feeling the brunt of the increase.

And already the JPS has effected a new schedule of rates for non-fuel charges to customers that range from 3.5 per cent to 4.5 per cent higher than the rates set six month prior. Those new rates came into effect on June 18, which means the island’s sole distributor of electricity stands to see another bump in revenue.

It was costs “associated with restructuring expenses for the first half of the year”, according to the light and power company, that caused JPS to return lower net profit for the review period, which was down from US$16 million made during the June quarter of 2009 to US$5.8 million during the review quarter.

The restructuring costs in the June quarter largely was accountable for turning other income of US$13.03 million in the corresponding period last year into US$5.38 million in expenses during the three months ending June 30.