OUR blocks back-billing efforts by JPS

The Office of Utilities Regulation (OUR) has ordered the Jamaica Public Service Company (JPS) not to back bill new account holders or those showing an increase in consumption during its meter replacement programme unless there is convincing evidence of illegal abstraction of electricity or meter tampering.

The directive was issued in accordance with a revised back-billing policy submitted by the JPS to the OUR on Friday to give effect to recommendations contained in a report into the company's billing and metering system.

The enquiry was led by the regulatory body's former director general, J. Paul Morgan.

The OUR directed that effective December 5, all new account holders, including those occupying premises where a meter has already been installed, should have their meter checked and, if necessary, a new one installed prior to activation of the account.

"Under such circumstances, the JPS shall not back-bill the customer beyond the point of commencement of the new account," the directive said.

In a large-scale meter replacement exercise, the OUR said, customers' accounts showing an immediate increase in consumption post-meter change should not be back-billed, except in cases where there is convincing evidence of an unauthorised abstraction of electricity.

The OUR has also ordered that within 30 days of the directive, the JPS should amend its policy documents to reflect measures to ensure that the frequency of meter testing annually is in accordance with its licence.

Annual schedule

In addition, within a month of the start of each year, the JPS will be required to submit to the OUR an annual schedule designating the areas for which meter testing will be done during that year.

"Based on that schedule, a report detailing the number of meters tested, the date and results of the tests should be forwarded to the OUR within one month of the end of each year," the directive continued.

In the event that the JPS fails to adhere to the overall standards of its licence, the regulator said, it will be liable to accept the risk associated with a faulty meter and as such will be prohibited from back-billing beyond the material time when it should have discharged its responsibility to test the meters.

According to the directive, the period for which the JPS can back-bill an account must reflect the principle that the customer ought not to be disadvantaged because of an error by or the inefficiency of the JPS.

The OUR said the back-billing policy should be reformulated to be in line with best practice, particularly regarding back-billing on the grounds of fraud, alleged meter tampering and illicit abstraction.

"In the event that meter tampering is alleged," the regulator said, "the company is restricted to a maximum back-billing period of two years, subject to clear evidence that the customer has liability for a lesser period.

Should this conclusion in any specific case be unsatisfactory to either party, either is free to refer the matter to the Office (of Utilities Regulation) in the first instance, or the courts, at any time for adjudication."

The OUR said that in the event that fraud is suspected, the JPS shall be required to prove deliberate and wilful actions of customers if it is to apply the full period of retroactivity provided for by statute, or alternatively cause the matter to go before the courts.

The JPS was required to submit the revised back-billing policy to the OUR by last Friday, December 23 for review and approval, and to issue the amended policy and related issues as a code of practice, in addition to making it publicly available within five days of receipt of the directive.

The OUR warned that the JPS would be subject to prosecution if it failed to comply with the directive within the time specified.

mcpherse.thompson@gleanerjm.com