JAMAICA Public Service Company’s (JPS) appeal against the Supreme Court decision in 2012, which said that the company’s exclusive, monopoly all-Island licence was invalid, is awaiting the ruling from the Court of Appeal, which has just concluded its hearings.

In the meantime, JPS has continued to operate disregarding the provisions of the Electricity Lighting Act, by instituting a late fee of $250.00 for customers who do not pay by the due date on their bills. The company, conversely, offers a $250.00 rebate for early payments the month after the payment.

This scheme which collects a fee from approximately 70 per cent of all JPS customers is really intended to boost the company’s revenues as their executives have clearly stated. This amounts to estimated additional revenues of some $168 million annually. The practice of disconnections, especially those of paying customers, is also an infringement against the Electricity Act.

JPS is using its monopoly power as the sole transmitter and distributor of electrical power in the country to apparently keep the cost of electricity as high as it can, solely for profit purposes, as the country does not seem to benefit from the lower costs of US 21cents per kWh from Jamaica Energy Partners, which is 30 per cent of our total needs.

JPS has also refused to enact a contract signed about a year ago with a Canadian-American Company to supply low-cost fuel for the Bogue generating plants. On top of all this, JPS is applying to the Office of Utilities Regulation (OUR) for a 21 per cent rate increase; after just getting an 11 per cent increase late last year. Is JPS, perhaps, setting its own profit-making timetable at the expense of consumers, and delaying proposed lower-cost energy strategies for Jamaica?

Is JPS really losing the amounts of money that they claim? We need to know. There is still no agreement to charge a reasonable flat rate to certain consumers in an effort to cut down on electricity theft which JPS says costs some 25 per cent of annual profits.

Jamaicans United for Sustainable Development (JUSD) recalls that the Government is a 19 per cent owner of JPS, and that the OUR is mandated to monitor and regulate the company’s operations on behalf of the public. Sadly, this does not seem to be the case anymore. We are, therefore, calling for an audit and a stop to all JPS’s current questionable activities. Perhaps the most disturbing news of all is the latest article dated April 21, 2014 in The Sydney Morning Herald, written by Michael West, entitled ‘Mystery surrounds Energy World Corporation’s coup in Jamaica’.

The story goes on to say that EWC’s financials were used for the project. “When asked by the Jamaicans to produce their financials to demonstrate an ability to build and operate a $730-million power station…they produced EWC’s financials. No matter that EWC has a share market value of $520 million; no matter that it has made a raft of fanciful claims over the years about building LNG facilities which have never come to fruition; EWC didn’t win the tender EWI did.

“There has been some confusion in Jamaica that EWC is the parent of EWI, it’s the other way around. EWI owns 36 per cent of EWC… the rub is that precious little is known about EWI.” It is clear that this cloudy transaction must now be clinically examined by the Energy Monitoring Committee (EMC) and the OUR and Government.

We will have to hold the EMC and the OUR responsible if there are any breaches of this agreement reportedly signed by Energy Minister Phillip Paulwell on 4th April, 2014. Have the conditions of the licence been met, completely or partially? And if so or not, why has there been no report from the OUR and EMC to date? We see the OUR asking the same questions.

Equally disturbing are three reports in The Wall Street Journal, March 19, 2014; Bloomberg, March 19, 2014; and The Japan Times, March 20, 2014 saying: “Trading Co Marubeni Corp has agreed to pay a US$88-million fine after admitting bribing Indonesian government officials to secure a lucrative power project, the US Justice Department said Wednesday.” Is this the same Marubeni Corp that owns 40 per cent of JPS?

If so, would there be any concerns about this United States Justice Department statement and any implications of this activity for Jamaica? Once again the Government, OUR and the EMC have to immediately investigate these reports concerning JPS and energy in Jamaica and take the necessary corrective measures, if any without fail.

The above is contributed by Richard ‘Dickie’ Crawford. He represents the views of Jamaicans United for Sustainable Development.