Dear Editor,

The Office of Utilities Regulation (OUR) has taken note of the article published in the Jamaica Observer on May 24, 2022 titled ‘Councillors call for JPS audit’ in which one councillor in the Westmoreland Municipal Corporation is reported to be calling on the OUR to conduct an audit of the Jamaica Public Service Company Limited (JPS), given the complaints of escalating electricity bills. Another councillor is reported to have expressed concerns regarding JPS’s capacity to respond to emergencies.

We thank the councillors for sharing what we are sure is not just their concerns but also those of their constituents.

The OUR is very mindful of the rising electricity bills and the impact this is having on all rate-payers. Increases in electricity bills are mainly attributed to three factors: fuel and independent power providers’ (IPP) rates, foreign exchange adjustments, and consumption, the latter being the only factor over which consumers have control.

The cost of fuel and the foreign exchange rate are direct pass-through to customers by the JPS. Significantly, the fuel and IPP rates together represent approximately 70 per cent of the JPS bill charges on a monthly basis. Therefore, any increase in these elements will result in increased consumption charges, despite no increase in usage.

The current rise in world oil prices is therefore having a manifest impact on our bills, resulting in increased public outcry. We note, in this regard, the Government’s introduction of the co-pay subsidy on electricity bills to bring some relief. We understand the benefit will run from April to July 2022 and pays 20 per cent of the bill for customers consuming less than 200 kilowatt-hours or less per billing period.

It is true that the OUR conducted an investigation in 2020 amidst complaints of high electricity bills. That in-depth investigation — which included a supervised drawing down of data from JPS’s systems — concluded that higher consumption and fuel and IPP charge were found to be significant explanatory factors for bill increases at that time. The OUR also found after examination that the company’s billing calculations were largely compliant with the terms of the 2018-2019 JPS Rate Schedule.

JPS rates are approved by the OUR and is computed based on provisions in schedule 3 of the Electricity Licence, 2016, which clearly outlines the bases on which JPS can apply for a rate review and the factors to be considered by the OUR when assessing rate applications. It is to be noted that JPS has been mandated to display on the bills all rates and factors used to compute the amount being charged so that customers can check the accuracy of the calculation and to prevent any arbitrariness in the rates being used.

While the OUR is not a consumer advocacy body, it has a Consumer Affairs Unit (CAU) which assists with customer appeals. We therefore urge customers who have very high bills which they have brought to the attention of JPS but still remain dissatisfied to contact our CAU. We will be only too happy to assist. Such contacts could also be helpful to the OUR in determining if another investigation along the lines being called for is warranted.

The OUR remains vigilant in its monitoring of the quality of service that is being delivered to customers. Regarding response time to emergencies, the JPS Guaranteed Standards developed by the OUR states that JPS should respond to emergency calls within five hours.

Emergencies are defined as broken wires, broken poles, and fires. Any breach of this standard requires that JPS compensate the account of the affected customer who first made the report. This compensation is equivalent to the reconnection fee, in the case of residential customers, and four times the customer charge for commercial customers.

The OUR has been urging National Water Commission (NWC) and JPS customers to familiarise themselves with all the guaranteed standards so they can hold their utility providers accountable. In addition, we encourage local representatives, such as councillors Ian Myles and Cebert McKenzie, to collaborate with us in spreading the word to their constituents of the existence and application of the guaranteed standards and the redress available to them.

The OUR recently met with stakeholders in the western parishes and are seized with the urgency of some of the utility matters which need to be addressed. We have started our own investigations of some of these matters and will be taking them up specifically with the different utilities we regulate.

In relation to the specific complaints raised in the article, the OUR has contacted the councillors to obtain details, with some level of specificity, to assist in the resolution process. We have now established a channel of communication with them on these and other significant utility matters impacting their constituents.

Elizabeth Bennett Marsh

Director, consumer and public affairs

Office of Utilities Regulation (OUR)

elizabeth.bennett@our.org.jm