Paulwell lashes high electricity bills, renews call for removal of fuel tax
Published:Tuesday | May 19, 2020 | 4:42 PM
Opposition Spokesperson on Energy, Phillip Paulwell, is again calling for the government to immediately remove the hedge fund component of the Special Consumption Tax (SCT) on fuel and the General Consumption Tax (GCT) on electricity bills.
Paulwell says the removal is to ensure a reduction of fuel prices at the pump and the lowering of light bills, which he says are now up by almost 10%.
He contends that whereas the increased electricity prices may also be reflecting ongoing devaluation of the Jamaican dollar, the portion of the SCT which was intended to finance the hedge fund continues to be a significant contributor to high energy prices.
He is asserting that this is particularly egregious as the government has bought no oil hedge insurance for the past four years.
“The continued pass through of these taxes to end-users is causing additional burden to the Jamaican consumers at a time when many have lost their incomes and businesses, and are struggling to make ends meet due to effect of the COVID-19 pandemic on the economy,” said Paulwell.
Paulwell says with the closing of schools and children receiving instructions through online platforms, domestic energy usage is increasing significantly as households are using more electricity for Caribbean Examination Council and other academic preparation.
“According to current public information, JPS customers are experiencing an average increase of some 7.3% on their electricity bills due to the rapid devaluation of the Jamaican dollar and the fact that Petrojam prices are not falling in line with world market trends.
“JPSCo has also announced that it is using $142.95: US$1 to calculate customer bills for the month of May.
“In light of the reduction in fuel costs globally, which should have resulted in purchasing prices being at the lowest they have been in decades, I am calling for the removal of the hedge fund component of the SCT and the GCT for the benefit of lower oil prices to be passed on to electricity consumers,” he said.
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