JPS says application for rate review still under consideration

Light and power provider Jamaica Public Service Company (JPS) says its application to the Office of Utilities Regulation (OUR) for a rate review is still under consideration, which is mandatory under its operating licence.

The JPS said its initial submission for a rate review was rejected, but the application is still open for review pending the resubmission of additional information requested by the utility regulator. It said a decision on the date for the resubmission of the additional information requested by the OUR has not yet been made.

“It is important to understand that the OUR has not yet evaluated JPS’ application to make a decision on the actual request," Winsome Callum, JPS director of corporate communications, said in a release yesterday. 

"They have asked the company for additional information to facilitate a full evaluation and determination on the application,” Callum explained.

According to the JPS director, “the request for additional information is not an extraordinary occurrence, as the rate review process outlined in the 2016 Electricity Licence, includes provision for the OUR to request additional details from the company. It represents a delay in the rate review process, which is a disappointment for us, but we are continuing discussions with the OUR to see how best we can get the process going.”

The clarification from JPS follows reports on Friday that the OUR had rejected its rate review application. The report indicated that the OUR had rejected the power provider's 2019-2024 tariff review application because of material deficiencies, including the absence of critical information and supporting documentation.

The OUR said its action was in keeping in  pursuant to Schedule 3, paragraph 7 of the Electricity Licence, 2016, which states inter alia, that “If the Office determines that the filing is deficient it shall reject such filing within the said ten (10) working days and shall notify the Licensee clearly identifying the deficiencies.”

As a result of this decision, the utility regulator said public consultations on the JPS tariff proposal scheduled for August 20- September 4 have been postponed until further notice.

But the JPS said it had indicated to the OUR that its application is based on a detailed investment plan for further modernisation of the country’s energy infrastructure over the next five years, including improved reliability and quality of service, reduced outage duration and frequency, and improved customer service.

JPS said its application is also designed to allow it to recover costs related to investments already made in infrastructure, renewable energy support, and new technology.  In addition to these objectives, the light and power provider said the filing also speaks to distributed generation and the use of electric vehicles and gives support to the Government’s National Energy Policy.

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