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Paulwell opposes OUR’s proposal to increase consumers’ contributions to the Electricity Disaster Fund
Opposition Spokesperson on Energy and Climate Change, Phillip Paulwell (File photo)
Latest News, News
November 11, 2024

Paulwell opposes OUR’s proposal to increase consumers’ contributions to the Electricity Disaster Fund

KINGSTON, Jamaica — Opposition Spokesperson on Energy and Climate Change, Phillip Paulwell has voiced strong opposition to the Office of Utilities Regulation’s (OUR) proposal to increase consumers’ contributions to the Electricity Disaster Fund (EDF) in light of the Jamaica Public Service Company’s (JPS) request for US$26 million from the fund to cover hurricane repairs.

Paulwell expressed grave concerns about the impact of such a move on consumers, particularly given the ongoing cost-of-living crisis.

He called for greater transparency from the OUR and JPS, emphasising that consumers deserve a clear and detailed explanation of the basis for this request and the justification for any increase.

“I do believe that consumers have the right to a transparent process where the details of the claim are disclosed,” Paulwell said in a press release on Monday. “Neither do I support an increase to consumers’ contributions to the disaster fund at this time. The Jamaican people cannot continue to bear the brunt of every financial shortfall in the energy sector.”

The EDF, established in 2004, was designed to provide a buffer for restoration activities following natural disasters while minimising financial strain on consumers. However, Paulwell noted that the very essence of the fund, to shield consumers from the financial impacts of disaster recovery, seems to be under threat with the current proposal to raise the monthly contribution.

Paulwell also questioned the timing of this proposal, pointing out that in July, assurances were given to the public that there would be no additional charges to customers to support JPS’ post-hurricane restoration efforts.

“This reversal undermines public trust. If the EDF was intended to ensure that consumers are not saddled with additional costs in times of disaster, then the OUR and JPS must act in alignment with this purpose. Transparency and accountability are non-negotiable in this matter,” Paulwell said.

Paulwell added that Jamaica already has one of the highest energy costs in the region, a factor that places immense pressure on both households and businesses.

“Adding any further burden will only exacerbate the challenges faced by Jamaicans and stifle economic growth,” he warned.

He is therefore urging the OUR to prioritise consumer protection and explore alternative measures to strengthen the EDF without imposing further financial burdens on the public. He further called on the OUR to engage in open dialogue with all stakeholders ensuring that any decisions made are in the best interest of the Jamaican people.

Tags:

Electricity Disaster Fund JPS OUR Phillip Paulwell
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