Customers to begin paying for JPS losses come July
Customers of the Jamaica Public Service Company Limited (JPS) are to see an increase in their electricity bills come July.
The increase will allow the JPS to recover losses resulting from amendments to its licence last year January, which resulted in the shortening of the depreciable life of some of its assets.
The company claims that the shortening of its asset lives has resulted in asset impairment expenses and increased depreciation costs which will amount to US$28.5 million over the period 2016 to 2028.
However, the Office of Utilities Regulation (OUR) says the immediate application is only for recovery of US$13.4 million.
The OUR says it has decided to grant approval for the JPS to recover the US$13.4 million for asset impairment for 2016 using the Z-Factor mechanism, while the component associated with the increase in depreciation expenses will be handled via a rate revision.
The OUR says recovery of the US$13.4 million is set to begin in June.
However, the OUR has not said the level of increase customers should expect.