With Jamaica Public Service Customers (JPS) customers facing an increase in their electricity bills, businesses are being urged to seriously consider switching to solar to cut energy costs.

The call is being made by president of the Small Business Association of Jamaica (SBAJ), Garnett Reid.

Reid, during an interview with Observer Online, expressed disappointment in the proposed seven per cent increase, noting that several businesses are already feeling the pinch from Category 5 Hurricane Melissa due to a decline in sales, including those in Kingston.

“Small and medium-sized enterprises will be hurt by the seven per cent increase because electricity is one of the biggest inputs in operating a business. Electricity is one of the biggest inputs in operating a business, and you’re going to need electricity for machinery, refrigerators, stoves, food, computers, and the list goes on,” the president said.

According to Reid, small businesses have seen a decline in sales between 20 and 30 per cent following Hurricane Melissa, which made landfall in the southwest of the island on October 28.

“A number of businesses are not going to have a Merry Christmas. They’re either going to operate at a loss or break even because of Hurricane Melissa,” Reid said.

He called for greater clarity from Energy Minister Daryl Vaz regarding the US$150 million loan extended to JPS to support the company’s restoration efforts.

“I’m just confused. I need clarification from the minister. What is that $150 million going to be used for?” Reid asked. “I thought that was to help the business people and Jamaicans in general, and so I am disappointed with the OUR [Office of Utilities Regulation].”

He added that with higher electricity costs, businesses must now shift to renewable energy.

“I’m disappointed with the management of the Jamaica Public Service Company. Where it’s concerned, consumers will be hurt by JPS’s high electricity bills. It was high already, and now with the seven per cent, it’s going to be even higher, and therefore, we are recommending now that people go solar,” Reid stressed.

The president also called on the government not to renew the JPS contract in its current form, arguing that greater competition in the market is necessary.

“Once you have competition in the market, then a company will do better because they are going to need a customer, and customers will go where they feel comfortable with which company,” he said.

This OUR on Monday announced that JPS customers will see a seven per cent increase on their December bills for November’s consumption.

“This adjustment was anticipated, as JPS had to rely on more expensive fuel sources for generation because natural gas was unavailable in the period leading up to, and immediately after, Hurricane Melissa,” the OUR said in a statement.

Additionally, it said Hurricane Melissa resulted in an approximately 30 per cent reduction in sales, which contributed significantly to the increase in the fuel and Independent Power Producer (IPP) rates.

OUR said together, these factors could have translated to a big hike in the November bills. However, to avoid a shock to customers, JPS, following consultations with the OUR, opted to defer some of the increase in fuel and IPP costs and recover it by spreading it over the upcoming months.