‘Cost of utilities a major challenge for businesses’
ROSE HALL, St James — Wayne Cummings, the senior director for administration and business processes at Sandals Resorts International, has cited the high cost of utilities as a major challenge for businesses operating in Jamaica.
“The cost of doing business has to be the primary focus for any business, first of all, but it needs also to be the same for any regulator and governance structure because your viability is a viability of the economy,” Cummings said.
Cummings was speaking on the topic: ‘The cost of utilities to businesses’, during a panel discussion at the Montego Bay Chamber of Commerce and Industry Power Brokers’ Workshop and Luncheon held last Thursday at the Holiday Inn Sunspree Resort in Rose Hall, St James.
According to Cummings, companies such as Sandals, currently pays $1.5 billion annually to the Jamaica Public Service (JPS) for electricity, noting, however, that a recent drop in the price of oil had resulted in a reduction in electricity bills.
He stressed, though, that he was concerned that there was apparently no clear measures in place to keep the cost of electricity low.
Minister of Science, Technology, Energy and Mining, Phillip Paulwell, and President and Chief Executive Officer of the Jamaica Public Service, Kelly Tomblin, who also addressed the function, pointed out that steps were being taken to lower the cost of electricity, and to improve stability.
Paulwell said these include the establishment of the Caribbean’s largest 24- megawatt electricity generating solar system in Clarendon, for which ground is expected to be broken before the end of this month. That project, he said, is expected to cost $7 billion.
Just over two weeks ago, ground was broken for the creation of Wigton III in Rose Hill, Manchester, at a cost of $5 billion. The project, which is scheduled to be completed within another 12 months, is also expected to supply 24 megawatt of electricity.
And more recently, ground was also broken last Wednesday for the creation of another farm in Malvern, St Elizabeth, set to cost of $10.2 billion. The 36.3-megawatt farm is being developed by BMR Jamaica Wind Ltd.
Meanwhile, Cummings reiterated his call for a review of how sewerage rates are calculated.
Currently, the amount charged by the National Water Commission for sewerage is 100 per cent of the domestic water consumed.
Emphasising that this should not be the case, Cummings argued that “domestic water is also used for cooking and watering lawns, resulting in less water returning to the NWC treatment plant as waste”.
Cummings had raised his concern about sewerage charges with Water Minister Robert Pickersgill and officials of the National Water Commisison at a consultation meeting in Negril in January.
Cummings also had concerns that the
acquisition of Columbus Communications, operators of FLOW, by Cable and Wireless PLC — parent company of LIME — could result in “a monopoly behaviour by LIME, to include higher rates for customers”.
Paulwell and head of legal and regulatory affairs for LIME, Rochelle Cameron, sought to dismiss the concern, stressing that the deal will work positively for Jamaica.