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Vaz, JPS clash
JPS workers doing pole replacement in Greater Portmore, St Catherine.
Front Page, News
July 22, 2024

Vaz, JPS clash

Minister’s anger soars after company seeks to opt out of licence obligations

MINISTER with responsibility for energy Daryl Vaz is awaiting the outcome of a meeting involving the leadership of Jamaica Public Service Company (JPS) and Office of Utilities Regulation (OUR) today before he determines his next step in a growing stand-off with the entity.

Vaz has been up in arms since late last week when JPS told its customers that their next bill may be estimated.

The minister’s anger with the JPS increased after he was handed a letter indicating that the company would be opting out of the obligations of its operating licence under force majeure, as Hurricane Beryl has created uncontrollable events that are not its fault and which make it difficult or impossible to carry out normal business.

“What the JPS wants to do is to get a force majeure in the contract while using the contract as it stands to penalise its customers. It’s wrong, it is absolutely wrong,” declared Vaz during an interview with the Jamaica Observer on Sunday.

Communication sent by JPS to its customers Friday, warning that their bills this month may be estimated.

“Depending on what comes out of that meeting between the JPS and the OUR today, it will determine how I move in relation to calling in the JPS board and the shareholders,” added Vaz.

He told the Observer that none of the three Government board members were called to any meeting or had any discussion in relation to the estimated bills, “And I suspect that is because the JPS is going by its licence. The licence sets out what they can or cannot do — and you know who signed that licence, which is up in 2027.

“This is a fundamental issue that speaks to equity and fairness. And the fact of the matter is, while we don’t want to politicise it, the fact is the licence they are operating on was signed by Phillip Paulwell in 2016, so he has no moral authority to make any request in relation to the conditions that he approved.”

Vaz charged that JPS was being selective in its response to Hurricane Beryl and is sending mixed signals.

“The bottom line is the JPS says it is working within the terms of its licence, but that doesn’t mean the company cannot alter its decisions in the best interest of its customers.

“On the issue of the force majeure, I have sent that letter to the OUR for them to peruse, and also to the Attorney General’s Chambers (AGC). I have asked the AGC to look at the licence and give me their interpretation, as they are the Government’s lawyer.

“If it means that I have to summon the JPS board and the stakeholders to deal with this matter — which I believe is critical in relation to principle and equity — [then this will be done]. And I don’t understand how the JPS can want force majeure — which is to suspend the terms of its licence because of a disaster — but are not seeking to do anything to cushion the effect on its customers,” said Vaz.

He pointed out that he is slated to host a meeting of the parliamentary committee looking at the Electricity Act of 2015 so as to have the members sign off on the final draft of its recommendations.

“Obviously what has happened with the estimated bills will give us an opportunity to specifically look back at that and make sure it is tightened up so that we don’t have to go through something like this again in terms of not protecting JPS customers in a time of disaster.

“I am on the side of reason and I am on the side of the people who are the customers of the JPS,” added Vaz.

JPS has already indicated that not all its customers will receive estimated bills during this billing cycle, and those who do get estimated bills will see an average of their last three bills as this is standard operating procedure.

JPS crew members work at installing a new pole as it continues restoration activities across the island..

JPS workers doing pole replacement in Greater Portmore, St Catherine,

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