OUR reviewing JPS' annual tariff adjustment requestMonday, June 21, 2021
KINGSTON, Jamaica — The Office of Utilities Regulation (OUR) says it is reviewing the Jamaica Public Service Company Limited's (JPS) 2021 annual tariff adjustment submission and will make a decision by September this year.
The agency said the current filing is the utility provider's first application for an annual tariff adjustment following the conclusion of the OUR's 2019-2024 JPS tariff review process in 2020 December.
It noted that the 2021 filing is in keeping with the annual tariff review provision in the Electricity Licence, 2016, which allows for adjustments to the company's revenue targets each year, over the 'life' of the five-year tariff, to account for movements in factors such as inflation, the foreign exchange rate and JPS' technical performance.
According to OUR, JPS' proposal includes consideration for an average adjustment of 3.5 per cent of the non-fuel tariff. In its proposal, JPS assumes average fuel and independent power producers' (IPP) rates of J$25.85/kWh and J$11.41/kWh respectively, the agency noted, adding that the electricity provider has proposed a total bill impact (including fuel and IPP charges) of 3.8 per cent for a typical residential (Rate 10) customer, and 2.2 per cent for small business (Rate 20) customers.
The OUR said JPS' proposal includes bill movement for large commercial and industrial customers — Rate 40 and Rate 50 customers — increasing within the range of three per cent to four per cent respectively; very large scale businesses — Rate 70 Standard customers — going up by 4.3 per cent while Rate 70 customers using a time of use (TOU) rate structure, would see a 3.5 per cent increase.
The regulatory body said JPS has also proposed an annual (non-fuel) revenue target for 2021 of $49,131,000 versus the company's (non-fuel) revenue projection of $43,751,000 should the existing tariff remain unchanged.
It added that following the OUR's 2019-2024 JPS Tariff Determination Notice in 2020 December, JPS appealed a number of the OUR's decisions to the Electricity Tribunal.
Some of these matters were raised in the company's 2021 application and are still pending before the Tribunal, the OUR said.
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