OUR approves 1.4% increase in JPS billsTuesday, September 14, 2021
KINGSTON, Jamaica — Jamaica Public Service (JPS) customers can expect at least a 1.4 per cent increase in their bills, effective October 2021.
This follows the Office of Utilities Regulation's (OUR) decision on the 2021 Annual Review Application submitted by JPS on May 5, 2021.
The company had requested an average increase of 3.5 per cent but OUR's decision, which took effect September 1, only granted an overall average increase of 1.4 per cent in customers' bills (non-fuel and fuel charges).
Other decisions by the OUR include:
- A determination that there is a net over-recovery balance (including weighted average cost of capital) of $297.1 million owed by JPS to its customers with respect to the decisions in the 2018 Annual & Extraordinary Rate Review Determination Notice arising from the lapse of time between that decision and the implementation of the 2019-2024 Rate Review Determination Notice issued by the OUR in December 2020. JPS is therefore required to apply a reduction of $0.113 per kWh to its average non-fuel tariff over an estimated 10-month billing period to effect this repayment.
- The revision of Time of Use (TOU) rates for Rate 10 (residential) and Rate 20 (small commercial) customers. The revision minimises the risk of revenue losses to JPS. The company is required to roll out its TOU programme over the next six months and engage customers in a public education programme.
- The maintenance of the relationship between the energy rates for Electric Vehicles at public charging facilities at Rate 10 TOU rates plus five per cent. This decision was first made in the 2019-2024 JPS Rate Review Determination Notice.
- The approval of non-fuel pre-paid rates as follows:
Rate 10 Customers
J$13.85/kWh for the first 117kWh within a thirty-day consumption cycle
J$21.03/kWh for each additional kWh thereafter within that thirty-day consumption cycle
Rate 20 Customers
First 10kWh - J$122.45/kWh
Each additional kWh - J$9.03/kWh
The IPP rate for both Rates 10 and 20 customers is to be displayed as a separate line item on bills.
- Further, the OUR was of the view that the JPS's proposed Heat Rate target of 9,927 kJ/kWh for the 2021-2022 rate adjustment period was not in line with optimal economic generation dispatch. Consequently, the 2021-2022 Heat Rate target of 9,667 kJ/kWh established in the 2019-2024 Rate Review JPS Determination Notice was maintained for the next rate adjustment period.
- JPS's proposal for the revision of the OUR's determined 2021 System Losses targets was not approved. In this regard, the overall System Losses target of 23.8 per cent specified in the 2019-2024 Rate Review JPS Determination Notice is applicable for the 2021 period.