JPS applies for average 2.8 per cent electricity tariff increase
The Jamaica Public Service Company Limited (JPS) has applied to the Office of Utilities Regulation (OUR) for changes to its tariff which could see the bills of its customers increasing by almost three per cent.
The JPS submitted to the OUR on May 5, its 2017 Annual Review of Rates application which includes a request for an Extra-ordinary Rate Review.
The OUR is expected to issue its determination within 90 days.
In its submission, JPS has requested that its 2017 annual non-fuel revenue target be set at $50.8 billion.
This would translate to an estimated average increase of 4.5 per cent on the non-fuel tariff across all rate classes.
If accepted by the OUR, JPS’ proposals would see the bill of the typical residential and small commercial customer increasing by an average 2.8 per cent.
The typical bill for large commercial customers would register increases in the range of 1 to 2 per cent.
The JPS has also requested a new wholesale rate class to entice persons who generate their own electricity to stay on the grid.
The light and power company asserts that the best alternative option for its larger customers in terms of self-generation is lower than the current cost of electricity supplied from the national grid.
As a result JPS says there is a real threat of significant grid defection.