Bill Express to take over JPS contract - sources

Jamaica Public Service (JPS) Company is negotiating a new outsourcing contract for its bill-collection service and could make an announcement as early as Thursday, persons familiar with the talks have said.

Last night, well-placed sources told Wednesday Business that the power company has tapped a new partner linked to a Jamaican conglomerate and is tidying up the arrangement.

"They're in negotiation with Bill Express," said the source.

The power company was forced to seek a new partner after JN Money Services Limited (JNMS), part of the Jamaica National Building Society group, decided to end their three-year-old association.

"The contract between JPS and JN was coming to an end, and JN opted not to renew," spokeswoman for JPS, Winsome Callum, said last night.

"They indicated that they would be exploring other options to continue to grow their market share."

JNMS collects on electricity bills from 15 JPS locations under its JN Money Shop Xpress marquee.

The collections were initially contracted to Paymaster Jamaica Limited. But well-placed sources say it was not a lucrative arrangement for the Audrey Marks-owned company, which tried adjusting fees to offset some of the losses.

When asked whether GraceKennedy was going after the business, GK Money Services redirected queries to JPS.

"I cannot disclose that," said Michael McNaughton, vice-president of product development. "I think you should speak to JPS."

But other sources with knowledge of the talks were more direct, indicating that when the JNMS arrangement comes to a close December 31, Bill Express would immediately step into the vacancy.

"The arrangement starts in January," the person said, on condition of anonymity.

Bill Express is a bill-payment service operated by GraceKennedy subsidiary, GK Remittance Services.

Paymaster was not reached for comment, but persons close to that company said its past experience with the JPS contract was too raw for the company to make another try for the business.

Paymaster is also facing a hefty legal bill after losing a bruising legal battle with GraceKennedy, in which Marks had alleged that GK Remittance Services and Bill Express had profited from pioneering bill collection software that Paymaster had initially commissioned.

Negotiations continue

It was not clear up to press time whether JNMS, whose selling point for its service included 'zero' transaction fees, had run into a similar stumbling block as Paymaster. Promised comment was not forthcoming.

Callum said both companies are working together to ensure a smooth transition at the end of the agreement, which is effective December 31, but asked about the likely successor, she said it would be premature to say as nego-tiations are continuing.

JNMS is concurrently negotiating the unwinding of the arrangement it had with JPS, saying in a statement that the terms of the disengagement are being finalised.

"The talks between our companies have been moving smoothly," said Leesa Kow, general manager of JN Money Services, "And, we are confident that they will be concluded in our mutual interest."

JPS plans to maintain the structure built out by JNMS, ensuring minimal disruption to customers, according to JNMS.

"Both companies continue to work together to ensure that there is a smooth transition at the end of the agreement, and that customers are not adversely affected," Callum said.

JN said its building society and Money Shop branches would continue to accept utility-bill payments, even after the contract with JPS end.

business@gleanerjm.com