THE Office of Utilities Regulation (OUR) says it has no application for, nor are there any current plans to increase electricity rates to strengthen the Electricity Disaster Fund (EDF) following Hurricane Beryl.

“The EDF is a self-insurance fund established by the OUR in 2004 to set aside a pre-determined sum annually for disaster occurrences. The OUR monitors and periodically reviews it to ensure that a minimum adequacy threshold is maintained,” the regulator said in a press release.

The OUR, at a webinar last Friday, discussed the EDF and indicated that the Jamaica Public Service Company Limited (JPS) has submitted preliminary estimates of approximately US$26.1 million to finance recovery efforts following the hurricane. This sum, which will be subject to approval after rigorous assessment, will be taken from the EDF.

“At the webinar, it was made clear that the OUR, as is the practice after every payout, would review the EDF, post-Beryl, to ensure it is properly funded to meet future liability arising from natural disaster occurrences. That statement sparked a misinterpretation that the OUR was currently contemplating an increase in electricity rates,” the release said.

In reacting to recent public comments, OUR Director General Ansord Hewitt said: “There is no proposal before us to increase customer contribution to the EDF. As the economic regulator, the OUR will analyse costs associated with the recent hurricane events to ensure their legitimacy. Naturally, we will also need to examine where the payment leaves the fund, in terms of its ability to meet future claims and activate OUR’s usual consultation process with all stakeholders, to ensure transparency. At this stage, that analysis has not yet been done, so any suggestion of the need for an increase is premature.”

Added the OUR, “Electricity rates are not arbitrarily increased as the electricity licence, 2016 provides clear guidelines on how and when such matters are considered, including in the review of tariff application submissions by the JPS, which are due annually or every five years”.

The Opposition People’s National Party, in a release Monday, said it is strong in opposition to the OUR’s proposal to increase consumers’ contributions to the EDF, in light of the JPS’s request for US$26 million from the fund to cover hurricane repairs.

Phillip Paulwell, the party’s shadow minister of energy and climate change, has called for greater transparency from the OUR and JPS, emphasising that consumers deserved 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,” said Paulwell. “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,” he said.