JPS job cuts a possibility

The Jamaica Public Service Company (JPS), is reporting that it could be cutting jobs as it grapples with the effects of the global financial crisis.



The chairman of the JPS, Tomo-fumi Fukuda, said his company is forced to consider cost saving measures as the financial crunch deepens.



Staff cuts are not being ruled out.



However, according to Mr Fukuda there are no immediate plans for a staff cut.



He says to compound the impacts of the international crisis, the JPS has not been seeing an increase in sales.



But at the same time, the light and power company continues to get 10,000 new customers a year.



Electricity theft is among the reasons for the failure of the JPS to increase revenue from sales although it’s getting more customers.



The JPS is losing $17.25 million US dollars or $1.29 billion Jamaican dollars a year because of theft.



Under the current tariff, the Office of Utilities Regulation permits the JPS to recover 15.8 percent of total electricity losses through customer charges.



But the company is losing 22.7 percent of the electricity it produces.



Ten percent is estimated to be technical losses, which means that 12.7 percent is due to theft.