JPS customers to pay more

Jamaica Public Service Company Limited (JPS) customers are to see an average 1.6% increase in their electricity bills.

This is a result of the review of the JPS' 2023 Annual Tariff Adjustment that was submitted to the Office of Utilities Regulation (OUR). 

The OUR says its decisions became effective August 9 and will be reflected in bills received for consumption following that date.

In its application to the OUR, JPS had requested, among other things, an overall non-fuel tariff adjustment of 13.2%.

The company also asked for an Annual Revenue Target for 2023 of J$55.1 billion.

It also sought no adjustment to the 2023 Annual Revenue Cap's Q-Factor, no Z-Factor adjustment in relation to its capital project transactions, and no Z-Factor adjustment on major projects, given this is the subject of a pending appeal by JPS.

According to the OUR, JPS had estimated that the proposed 13.2% increase on non-fuel tariff would have a bill impact effect of approximately 0.8% and 0.2% increase for residential and RT40 customers, respectively, and a 2.5% reduction in the average rates of commercial and industrial customers.

However, the OUR says its analysis of JPS's data suggests that the average overall increase for all customer categories would have been about 4.9%.

The utility regulator says it approved a 5.5% increase on JPS's 2022 approved Non-fuel Revenue Target.

It says this will result in an average bill increase of approximately 1.6%. 

Meanwhile, the OUR says its approved revenue target of $50.8 billion is $4.3 billion less than the $55.1 billion proposed by JPS.

It also approved non-fuel pre-paid rates for residential customers:

(i) J$15.72/kWh for the first 117kWh within a 30-day consumption cycle.

(ii) J$23.86/kWh for each additional kWh thereafter, within that 30-day consumption cycle.

The OUR also determined that it will retain the previously established heat rate target of 9,470 kj/kWh. 

JPS had proposed that the heat rate be maintained at the current level of 9,495 kj/kWh.

The heat rate indicates the efficiency of JPS's generation plants.

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