JPS head rubbishes lack of will claims

Damian Obiglio, Jamaica Public Service (JPS) president and CEO, has rejected suggestions that the company does not have the will to seek more efficient methods of providing electricity to consumers.

In a story published in The Gleaner on Monday, it was stated that a diplomatic cable revealed the United States Embassy in Kingston did not believe the JPS had done all it could to reduce the price Jamaicans pay for electricity.

According to the embassy cable obtained through WikiLeaks, a JPS official dismissed a suggestion from an American expert that would have led to improved efficiency at its plants and lower electricity prices.

But yesterday Obiglio said: "... an informal discussion between representatives of two entities does not necessarily represent the official position or policy of these organisations. The alleged reaction of a 'JPS official' to a comment from a 'United States government electrical engineer' should therefore not be taken as representing the official position of JPS."

He added: "For the records, I wish to state categorically that while we welcome independent analysis of our operations, JPS had no arrangement with any 'United States government electrical engineer' in 2009, nor is there anything on record to suggest that any such professional had made recommendations to JPS regarding efficiency improvements."

No guaranteed profit

Dismissing another claim in the article, Obiglio stressed that JPS has never had a guaranteed profit.

"It is totally incorrect to say that JPS made a return of 21.6 per cent in 2009, since the company has only barely exceeded a 10 per cent return twice since privatisation - in 2009 and 2010 ... ," he said.

Also, commenting on the suggestion that the light and power company's monopoly should be broken up, he said many people were "swayed by the myth" that introducing competition would lead to lower electricity prices for customers.

" ... the regulated single transmission and distribution operator, with efficiencies dictated by the regulator, is the most efficient model for Jamaica," he argued.