The Ministry of Science, Energy and Technology (MSET) says it will not be regulating the fees charged by private electrical inspectors, but will instead allow market forces to normalise the rates.

The Daryl Vaz-led ministry was responding in a statement, to calls from the Jamaica Public Service Company (JPS) for Government to regulate electrical inspection and certification fees that are being charged by private service providers.

The ministry said that for a long time JPS, householders, businesses and developers were enjoying a significant subsidy, based on the rates that existed for three decades.

MSET said the rates that previously applied were set in 1991. Those inspection fees included: $127 for a simple dwelling house; $16,340 for a medium-sized industrial factory; $22,820 for a 20-unit residential apartment complex; typical JPS extension $1,500; and temporary installation $500 to $1,000.The ministry said JPS should note that a private electrical inspector operates in a market where they have to bear the cost for public liability insurance, transportation, communication and administrative expenses, which must be factored in the costs to the consumer.

“The first response of Government ought not to be to limit or to restrict market forces but rather to focus on creating an environment that seeks to protect the interest of consumers. Establishing fees is just one option that is available to the Government, which is usually frowned upon by businesses operating in a free market enterprise as the JPS may very well appreciate,” MSETs statement read.

The energy ministry said 29 private electrical inspectors now fully satisfy the requirements to carry out inspections, and an additional 10 are seeking to secure public liability insurance to satisfy all the requirements under the regulations.

Further, the ministry has reissued the call for private electrical inspectors in an effort to increase the pool that is available to the public, explaining that privatisation of the service should address the inefficient, corrupt inspection system that was operating, where those who could afford it would make private payments to jump the queue.

“The new system is being monitored and the GOJ will do what is required within the legal constructs to remedy the situation,” MSET said.

The ministry insisted that the market is already regulating itself, but said the Government would “do what is necessary within the law” to assist the situation. It said given that this is a new professional grouping, it may take some time to shore up an acceptable number of qualified inspectors, based on the requirements of the Electricity (Electrical Work, Registration and Licensing) regulations.

As of November 1, the Government transitioned to a new system, where licensed electricians and private inspectors are now responsible for certification.

This drew the ire of JPS, which expressed shock at the spike in the cost for mandatory inspection and certification of properties to receive electricity, and consequently called for regulation of inspection certification fees.

The light and power company said with the privatisation of electrical inspection, people were being asked to pay upwards of $25,000. JPS fears the high cost will lead to an increase in electricity theft.“This is a new cost that customers must now pay in addition to the electricians’ fees and the cost of house wiring. Many consumers are complaining, because they cannot afford to pay these high fees,” the company lamented.Despite MSETs position, senior vice-president of customer service at JPS, Ramsay McDonald, stressed that there needs to be regulation of the market.

“We do not believe consumers are getting fair prices. We are, therefore, encouraging the Government to regulate these fees and expand the pool of licensed electricians and inspectors certified to offer their services,” he said, pointing out that with a small pool of inspectors serving the high-demand market, they are free to set their own prices.