The Jamaica Public Service (JPS) is pressing ahead with its appeal against the Office of Utilities Regulation (OUR) on the rate determination issued in response to its 2019-2024 Tariff Application.

In its annual report, the company highlighted “we believe our position is sound, and look forward to an early resolution that will facilitate the ongoing investment needed to maintain reliable service to our customers.”

The review of the 2015 Electricity Act started in 2021, and the process gave JPS an opportunity to make recommendations for its improvement. In its submissions to the joint select committee of Parliament (JSC), JPS turned the spotlight on the role, rights and responsibilities of JPS as a single buyer and generator of last resort.

The company highlighted its obligation to ensure ongoing grid maintenance and stability, while facilitating investments by other market participants. In this capacity, JPS made capital investments of more than US$800 million in the national electricity infrastructure in the past 10 years.

The light and power company also led the diversification of power generation and facilitated what it claims is more than 150 per cent growth in renewables on the grid.

“In our presentations to the JSC, we strongly recommended that the Electricity Act review not be used to attempt to alter market design, because of the fragile ecosystem of cross-subsidies across and within rate classes. We urged lawmakers to pursue an orderly and structured process guided by consultations, with careful consideration of international experience and detailed studies,” the company stated.

However, in late 2021, the OUR suspended JPS’ Transformer Protection Programme. JPS said the regulator’s cease and desist order left its equipment vulnerable to destruction.

“The Government’s introduction of a new unregulated system for electrical inspection and certification at the end of 2021 has made it much more expensive for potential customers to get their houses ready for legal electricity supply. Many continue to steal as a result,” JPS pointed out.

With that said, JPS has called on the Government to regulate the fees charged by electricians and inspectors.

The company indicated “we are sharing information to help consumers negotiate the best prices with electricians and inspectors. We have also started a training programme to augment the cadre of qualified electricians in the market. We will continue to do what’s in our control, but this is not a battle for JPS alone. The bottom line: theft of electricity is a crime that requires a national plan led by the Government. JPS stands ready to support a multi-stakeholder plan with Government and private sector.”

Between July and December, a total of 1,895 people were registered for legal service because of new social initiatives. But JPS complains that its efforts were frustrated on many sides.

“We ended the year with 20 per cent of electricity generated being stolen, about the same level as the year before,” the company complained.