Regulation by proclamation
TECHNICIANS from the Office of Utilities Regulation (OUR) have offered comparative tables to the Jamaica Observer showing that prepaid rates are similar to postpaid charges made to customers of the Jamaica Public Service Company (JPS). They also cite rate schedules which are publicly available.
However, they have provided no evidence that they have investigated claims by prepaid customers — mostly resident in Jamaican inner cities — that billing is approximately twice as much as regular postpaid customers.
In September 2022, residents of a community in St Andrew laid claim of discrimination by the JPS Limited as the cost of service for electricity under the prepaid plan which they were awarded appeared to be twice the cost to postpaid customers. Their story was published by the Jamaica Observer.
Traci-Anne Williams, after a week-long battle with JPS over postpaid services for which she had paid a $6,000 deposit, said on September 1, 2022 that she was forced to accept a prepaid plan as, she was told, she resided in a “project area”.
On this matter, the OUR has also responded to say it is not aware of prepaid being forced on anyone.
William’s fear, she said, was of the high cost of prepaid which averages $25,000 for one month’s usage to most residents in her neighbourhood, unless they can come up with creative ways to avoid buying electricity “credit”.
Williams, at the time of speaking to the Jamaica Observer, had been six days in darkness, having finally moved out of her father’s house to Harriban Lane in Kingston 8 where she now occupies her own apartment.
Her sister Renee who occupies an adjoining apartment told Business Observer, “ I have been paying $16,000 per month and sometimes more because if I use the washing machine, the credit runs out before the week finishes. I can’t have everything plugged in all at once when I’m washing and my concern is that I have to be plugging my fridge in and out when I want to do some laundry.”
She added, “I saw a JPS worker and I asked him why the credit not lasting for more than one week, he replied by saying because I have an old fridge.”
Another neighbour told the Business Observer, “right now me nah lie it wicked because me a add $15,000 credit an nah get a month’s [use]. Me stop use me washing machine, only me two fan and me fridge and [yet] by three weeks done mi affi top up for the rest of the month.
“Sometimes a $5,000 or $7,000 [in additional credit is bought] and me will get a one or two day over the month. The JPS man tell me seh a because me appliance dem ole.”
Another woman, self-employed, admitted, “Me have my likkle business. Me sell me juice and thing and wid mi deep freezer and me regular fridge, a $20,000 and $25,000 credit a month. “
Williams, expressing her fear about the prepaid plan, stated, “It is highway robbery. People have to go back to washing with their hands [instead of washing machines] because of this. How can this work? smh.”
Williams, at the end of the week, accepted the prepaid plan as she was told there was no alternative.
The JPS prepaid metering system has been offered to several communities in which the JPS has identified a problem of illegal extraction of electricity, which the company estimates costs the energy provider losses of about $200 million annually.
The OUR, which regulates the electricity provider, told Caribbean Business Report, “for the most part, JPS customers who opt for the Pay As You Go (PAYG/prepaid) service do not pay more. Our 2022 JPS Tariff Review Determination Notice sets out the rates to be applied. You can look at page 60 of that document via this link on our website: https://our.org.jm/document/2022-jps-annual-tariff-and-extraordinary-determination-notice/
They pointed to calculations based on prepaid and postpaid bills for 2022 September, “assuming the IPP (Independent Power Provider) charge and fuel rate are the same as in 2022 August.”
Although provided with the complaints of residents in Haribban lane, the OUR gave no evidence of investigating actual usage in the community or any other to which prepaid service has been applied.
The regulator stated as well that the prepaid service was an optional one, stating, “The OUR is not aware of any policy or decision that would see only pre-paid options being available to some JPS customers.”