OUR moving to verify JPS charges arising from increased fuel costs
Published:Friday | December 17, 2021 | 2:44 PM
The Office of Utilities Regulation (OUR) says it has stepped in to verify the composition and computation of certain charges as the Jamaica Public Service Company (JPS) warns customers about higher bills due to rising fuel charges.
The light and power company advised customers on Tuesday that it has been experiencing higher fuel prices in the past few months as a result of the international upsurge in prices.
This, it said, would lead to higher electricity bills for customers in the coming weeks as the company faces increasing fuel costs.
It urged customers to conserve energy usage to limit the impact on their bills.
The OUR says it has received correspondence from JPS on the situation, noting that the company has attributed that the increases to the higher commodity prices for oil and natural gas internationally and the devaluation of the Jamaican dollar against the US currency.
JPS also cited the temporary switch from natural gas to the more expensive automotive diesel oil at several plants for a combination of reasons.
The OUR says it recognises the potential rate shock to customers but is also mindful that costs pertaining to charges by Independent Power Producers (IPP) and foreign exchange rate movements are direct pass-through to customers.
These are explicitly provided for in the Electricity Licence (2016) and the JPS Rate Schedule and as such are not subject to regulatory control.
However, the regulator said that it has a duty to verify the composition and computation of such charges and how they are applied to customers' bills.
As such, the OUR has written to JPS requesting additional information including:
- The rates and charges applied to customer categories for November 2021 and December 2021.
- Analyses of the increases in fuel and IPP costs arising from the switch from natural gas to and automotive diesel oil.
- An explanation as to why some plants switched from natural gas to automotive diesel oil.
The OUR said it expects to receive all requested information from JPS by December 24.
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